Finance Minister-designate Dr. Cassiel Ato Forson has proposed a shift from macroeconomic fixes to addressing critical microeconomic challenges to stabilize Ghana’s economy.
He emphasized the importance of microeconomic interventions to complement macroeconomic policies. He criticized Ghana’s overreliance on macroeconomic strategies, which, he said, have led to temporary solutions rather than long-term stability.
Responding to questions during his vetting at the Appointments Committee on Monday, January 13, 2025, Dr. Ato Forson argued that addressing structural challenges is essential to prevent constant “firefighting.”
“We need to understand that you don’t only grow the economy from the macro but also from the micro. You don’t necessarily create jobs only from the macro. You create jobs from the micro,” he said.
The nominee explained that over the years, Ghana has overly concentrated on the macroeconomy and proposed a return to basics as a strategy to fix the economy.
Addressing concerns about the cedi’s depreciation, which has exceeded 30% in recent months, Dr. Ato Forson outlined his approach to stabilizing the currency. He argued that the Bank of Ghana alone cannot anchor the cedi and emphasized the critical role of the Ministry of Finance in this process.
He proposed a two-pronged approach: short-term measures to reduce inflation to 8% (±2%) and long-term structural reforms supported by a strong fiscal consolidation agenda and prudent expenditure management.
Dr. Ato Forson also called attention to the decline in the cocoa industry, citing a reduction in output from 968,000 metric tons per annum to less than 500,000. He stressed the importance of leveraging Ghana’s natural resources to generate revenue and stabilize the economy.
He stated that, according to the National Democratic Congress (NDC) manifesto, the new government intends to revitalize the palm and cocoa industries and establish the Ghana Gold Program to use gold reserves to bring in the necessary foreign exchange to stabilize the cedi.
Dr. Ato Forson pledged to prioritize job creation, economic stability, and price control during his tenure if confirmed. He assured the committee of his commitment to Ghana’s economic transformation.
“My priority is a stable cedi, low prices, and job creation,” he said.
