After years of volatility, the Ghanaian cedi is beginning to rebound, and much of the credit is being attributed to the renewed economic direction of President John Dramani Mahama. Since returning to office, the Mahama administration has introduced several targeted policies aimed at stabilizing the economy and restoring investor and public confidence in the local currency.Here are four ways the administration is driving the cedi’s comeback:
1. Launching GoldBod:
One of the most innovative moves by the Mahama administration is the introduction of GoldBod. Officially known as the Ghana Gold Board, it was established to centralize and regulate all aspects of gold trading in Ghana. It holds exclusive authority to buy, sell, assay, refine, and export gold produced by licensed small-scale miners. This restructuring aims to enhance transparency, curb illegal mining, and bolster the country’s foreign exchange reserves
From January to April 2025, Ghana’s total gold export earnings exceeded an impressive $2.7 billion. This remarkable achievement highlights the effective role of GoldBod in centralizing and regulating gold exports, boosting foreign exchange inflows, and supporting the stability of the Ghanaian cedi.
2. Tightening Fiscal Discipline
The administration has prioritized fiscal responsibility by cutting unnecessary government spending, streamlining operations, and refocusing budget priorities on high-impact projects. This has helped reduce the budget deficit and slow inflation, creating a more stable macroeconomic environment that supports the cedi.
3. Reforming the Cocoa Sector
Recognizing that cocoa and gold are major sources of foreign exchange, Mahama’s government is investing in increased productivity, transparency, and value addition in both sectors. In cocoa, farmers are receiving better support and improved pricing mechanism which is contributing to the rise of the cedi by increasing farmers’ productivity and incomes, which leads to higher cocoa export volumes and earnings.
Since cocoa is one of Ghana’s major foreign exchange earners, more exports mean more US dollars flowing into the country. This stronger foreign currency inflow boosts Ghana’s forex reserves, reduces pressure on the cedi, and helps stabilize and strengthen its exchange rate against the dollar.
4. Promoting Export-Oriented Industrialization
The administration is reviving Ghana’s industrial ambitions with a focus on agro-processing, light manufacturing, and strategic export-oriented investments. These efforts aim to generate foreign currency through diversified exports while reducing reliance on imports—lessening the demand for dollars and easing pressure on the cedi.
