Nine months not enough for Amin Adam to turn the economy around

Former Finance Minister Seth Terkper has raised concerns regarding the appointment of Dr. Mohammed Amin Adam as Finance Minister by President Akufo-Addo. Mr. Terkper, citing the timing of the change as crucial, particularly amidst Ghana’s ongoing IMF program, expressed skepticism about Dr. Adam’s ability to significantly influence economic policies.

Mr. Terkper suggested that the limited timeframe until the next general elections may constrain Dr. Adam’s capacity to enact substantial policy changes. He underscored the significant influence wielded by the president over budgetary and economic policies, implying potential challenges for Dr. Adam in implementing his preferred strategies.

In an interview on Thursday, February 15, Mr. Terkper advised caution among Ghanaians, urging them to temper their expectations regarding dramatic shifts in economic policies. He emphasized the practical constraints Dr. Adam may encounter in effecting sweeping changes within the current political and economic landscape.

“We are in a country where we could not do a turnaround of the economy, and we were preemptive, with everybody blaming it on COVID-19 and the Ukraine war, where some $6 billion flowed into the economy without the ability to turn it around.”

“This administration is not the only one that has suffered global or domestic setbacks, from droughts or floods to the global financial crisis, and so I think the situation is dire, and so we have to ask ourselves if nine months is enough time to do a turnaround.”

On Wednesday, President Akufo-Addo made a notable move by appointing Dr. Mohammed Amin Adam as the new Finance Minister, marking the end of Ken Ofori-Atta’s seven-year tenure in the position. This decision was part of the latest ministerial reshuffle announced by President Akufo-Addo on February 14.

Ken Ofori-Atta’s tenure, though marked by significant challenges, notably his handling of Ghana’s struggling economy, distinguished him as the longest-serving finance minister in Ghana’s history. Despite facing calls for his dismissal from some members of Parliament, Ofori-Atta continued to serve in his role.

The pressure on Ofori-Atta reached a peak on October 25, 2022, when approximately 80 MPs from the ruling New Patriotic Party (NPP) demanded his resignation due to the ongoing economic difficulties faced by the country. Subsequently, similar calls were echoed by the National Democratic Congress (NDC) parliamentary caucus in February 2023.

However, President Akufo-Addo stood firm in support of Ofori-Atta, rejecting the calls for resignation and urging Parliament to await the conclusion of discussions with the International Monetary Fund (IMF). This decision underscores the president’s confidence in Ofori-Atta’s leadership and his commitment to navigating Ghana’s economic challenges through ongoing negotiations with international partners like the IMF.