Ghana’s Economic Recovery Still Requires “Daily Monitoring” Despite Early Gains – Joe Jackson
Chief Operating Officer of Dalex Finance, Joe Jackson, has urged caution in evaluating Ghana’s recent macroeconomic improvements, warning that the economy remains in a fragile recovery phase and far from achieving full stability.
Speaking during a live X (formerly Twitter) Space hosted by NorvanReports and the Economic Governance Platform (EGP) on the topic “Cedi’s Comeback, Debt Reversal & Fiscal Hope: A Genuine Reset or Temporary Relief?”, Mr Jackson described the current economic outlook as one that requires “daily monitoring,” adding that while early policy bets appear to be paying off, critical structural risks remain.
“Seven months ago, the economy was in deep crisis. Whatever reset or recovery we’re experiencing now was always going to be a high-risk game,” Mr Jackson stated, cautioning against unrealistic expectations. “We’re out of intensive care, but we still need deep physiotherapy.”
He attributed some of the early wins to the government’s decision to drive down Treasury bill rates by accepting only programmed auction volumes, despite oversubscription. This, he noted, was necessitated by the unsustainable cost of servicing domestic debt at interest rates exceeding 30 percent.
However, he warned that reduced short-term interest rates must eventually reflect in broader lending markets if the recovery is to take hold. “Access to credit is critical, and right now, funds may be available, but the pricing does not support private sector expansion. Until lending rates come down significantly, we cannot speak of a validated recovery,” Mr Jackson remarked.
He called for a more pragmatic national discourse on fiscal outcomes, urging Ghanaians not to expect best-case scenarios from every policy move. “We are asking to have our cake and eat it,” he said. “We are too quickly forgetting how dire things were.”
Speaking further during the X Space discussion, Mr Jackson also cited the proposed 24-hour economy and other structural reforms as positive signs, but stressed that the private sector must be enabled to act on emerging opportunities.
“The blueprint is admirable, but it relies heavily on private sector participation, and for that, they need credit rates that make sense,” he noted.
