Vice President Dr. Mahamudu Bawumia has received a widespread commendation for his exceptional leadership following Ghana’s remarkable 6.9% economic growth in the second quarter of 2024—the fastest in five years.
Dr. Frank Bannor, a Development Economist and Head of Research at the Danquah Institute commended Dr. Bawumia for his unmatched expertise in economic management, which he credited for steering the country through challenging times.
“No one can rival Dr. Bawumia in economic management. His leadership has been transformative, and this growth rate is proof of his visionary policies.”
“His ability to navigate and manage the economy during difficult periods shows why he is considered an economic prophet,” Dr. Bannor said in an interview.
He stressed that Ghana’s performance is especially impressive when compared to other major economies in Africa and globally.
South Africa posted a modest 0.4% growth during the same period, while economic powerhouses such as the United States, Germany, and South Korea experienced slower growth or even contractions.
“The U.S. had a growth rate of around 0.4%, while Germany and South Korea faced contractions of -0.1% and -0.2% respectively in the second quarter of 2024. Yet here we are, with Ghana surging ahead with 6.9%. This proves that Dr. Bawumia is doing something right.”
“Look at the global stage…These are major economies—countries that can’t be underestimated—yet none of them recorded growth above 2% in the second quarter of 2024. Ghana, on the other hand, is growing at a rate we haven’t seen in five years,” he added.
Citing data from the Ghana Statistical Service (GSS), Dr. Bannor credited Ghana’s strong performance to the growth of the industrial sector, which expanded by 9.3% in the second quarter, largely driven by the mining and quarrying industries, particularly gold. He mentioned that the gold sector had seen its third consecutive period of growth, expanding by 23.6% during the quarter.
“Nearly 19% of Ghana’s employment is tied to the industry sector. So, when the sector is growing, it means that skilled labourers are finding jobs, which in turn helps expand the economy even further,” he noted.
However, Dr. Bannor cautioned against calls for a ban on mining in Ghana. He argued that small-scale mining plays a vital role in the economy and praised Dr. Bawumia’s proposal to establish a Minerals Development Bank if elected president in December. This bank, he said, would provide financial support for mining projects, ensuring that the sector continues to contribute to economic growth.
“Dr. Bawumia’s vision also includes addressing the issue of foreign mining corporations repatriating all of their earnings.”
He also lauded the Gold Purchasing Programme, which seeks to ensure responsible mining while addressing Ghana’s exchange rate challenges.
Beyond mining, Dr. Bannor highlighted the growth in the services sector, which expanded by 5.8% in the second quarter, up from 3.2% in the first quarter.
“The services sector encompasses communication, online business, wholesale and retail, restaurants and hotels, banking, finance, insurance, real estate, and more. It is the largest employer in Ghana, generating about 41.39% of total employment,” Dr. Bannor mentioned.
“The cocoa sector, a critical component of Ghana’s agricultural exports and a global leader in cocoa production, has now contracted for the fourth consecutive quarter, shrinking by 26.2%,” he said.
“While cocoa production is dwindling, other PFJ crops such as cashew and rice are driving the agriculture sector’s growth. PFJ is a resounding success and continues to yield positive results,” he stated.
Looking ahead, Dr. Bannor expressed optimism about Ghana’s economic trajectory, predicting a stable 5% growth rate by the end of 2024.
“If we continue on this path, we will surpass the economic predictions made by the IMF, World Bank, and Bloomberg. Ghana’s economy is poised for sustained growth,” he said on Movement TV.