Joe Jackson Warns Ghana’s Economic Gains Risk Being an “Illusion of Progress”
Joe Jackson, Chief Executive Officer of Dalex Finance, has cautioned against what he describes as an “illusion of progress” in Ghana’s economy, warning that recent gains may mask deeper structural weaknesses.
Speaking at a high-level public lecture hosted by the Chartered Institute of Marketing Ghana (CIMG) on March 31, 2026, themed “Ananse Stories About Ghana’s Economy,” Mr Jackson noted that the current “season of smiles” could prove temporary if underlying economic challenges are not properly addressed.
According to him, Ghana’s economic challenges are less about policy formulation and more about execution and outcomes.
“In Ghana, we really do not have a policy problem… we have written the ideas, launched the strategies and held the meetings, but somehow the results don’t always follow,” he stated.
He questioned the effectiveness of policy implementation, urging stakeholders to focus on delivering measurable results rather than developing new frameworks.
“Are we just writing policies or are we actually making them work?” he quipped.
Currency pressures and ‘usable forex’
Mr Jackson reiterated his position that the cedi’s persistent weakness is not primarily driven by import levels, but by limited domestic retention of export earnings.
He introduced the concept of “usable forex”, defined as the portion of export revenues that remains within the economy after accounting for leakages such as profit repatriation, service payments, and debt servicing.
According to him, even with Ghana recording trade surpluses in recent years, these gains are effectively offset by outflows, leaving insufficient foreign exchange to stabilise the currency.
“If forex demand exceeds usable forex, the cedi will continue to depreciate,” he explained.
He argued that Ghana’s heavy reliance on extractive exports such as gold, oil, and cocoa, coupled with low domestic participation, results in significant value leakages.
Export structure and value retention concerns
Using sectoral analysis, Mr Jackson indicated that Ghana retains less than half of the value generated from key exports, particularly in the gold sector.
He compared Ghana’s retention levels unfavourably with countries such as South Africa and Botswana, where higher local participation ensures greater value capture.
“If Ghana continues to retain less than half the value of its exports, then increasing export volumes alone will not strengthen the cedi,” he cautioned.
Challenging conventional narratives
Mr Jackson further criticised what he described as “Ananse-style” economic narratives, including the widely held belief that reducing imports alone will stabilise the currency.
He argued that such perspectives misdiagnose the problem and risk directing policy attention away from more fundamental structural issues.
“The problem is not exports or imports, the problem is where the value goes,” he stressed.
He also warned against misdirected public criticism of importers, noting that consumption patterns are often driven by affordability and structural constraints within the domestic economy.
Call for action
Mr Jackson urged policymakers, businesses, and professionals to shift from analysis to action, emphasising the need for systems that deliver tangible economic outcomes.
“Ghana does not need more talk, it needs doers,” he said, calling for a more deliberate focus on execution, accountability, and structural reform.
He maintained that without addressing value retention and strengthening domestic participation in key sectors, recent macroeconomic gains may prove unsustainable.
