Franklin Cudjoe, President of IMANI Africa, has suggested that Ghana urgently needs to take stock of its current economic challenges and rally around a comprehensive national recovery plan, similar to the approach taken by Sri Lanka, which is now seeing significant progress.
Cudjoe expressed concern over Ghana’s soaring inflation rate, which is nearing 25%, and criticized financial mismanagement in public institutions.
He highlighted the troubling example of the central bank allegedly inflating contract figures, spending over $300 million on an office complex—a decision he described as inconsistent with the realities of an economy in distress.
This, he argued, reflects the need for stricter fiscal discipline and transparency in public expenditure.
“And this is after the bank was forced to admit it printed and distributed money to fund completely deranged projects such as 1 village- 1 dam, 1 man- 1 toilet, leading to a 60gbn cedi debt.
“Sri Lanka’s government working with the country’s Central Bank has reduced its inflation to -7.5%, YES. Sri Lanka defaulted on its debt, chased the president and his ministers out of office and its debts went beyond the roof, but they are coming in from the cold and acting very sensible”.
Franklin Cudjoe
Cudjoe further criticized the ongoing mismanagement, lamenting that the head of the central bank and its directors have remained silent while continuing to enjoy their perks. “Yes, perks that will shock you”.
Cudjoe further described December 2022 as a pivotal moment in Ghana’s recent economic history, marking a period of immense financial turmoil.
According to him, inflation skyrocketed to an alarming 54%, severely eroding the value of citizens’ savings and leaving many Ghanaians grappling with economic hardship.
He noted that faced with an unmanageable debt burden, the government was forced to take unprecedented actions not seen in the last 50 years.
This, Franklin Cudjoe noted, included officially defaulting on its debt obligations, a move that triggered a series of complex and far-reaching debt restructuring efforts.
Cudjoe emphasized that these developments underscored the severity of Ghana’s financial crisis and the urgent need for strategic economic reforms to restore stability and confidence.
Debt Restructuring, Economic Management Failures Criticized
Furthermore, Franklin Cudjoe highlighted the painful realities of Ghana’s debt restructuring process.
He criticized the approach as akin to “pickpocketing” citizens’ savings, with drastic financial haircuts imposed on investments and savings accounts.
This severe erosion of financial security left many Ghanaians in distress, leading to widespread concerns among analysts and citizens alike.
Cudjoe remarked that the vice president and his once-renowned Economic Management Team, previously hailed as a “solid” and competent group, appeared to have failed to meet expectations.
“The Economic Management gurus tacitly agreed with the draconian and undemocratic means of paying odious debt accumulated recklessly through payments to deceptive projects and programs dumped at the most useless and corrupt ministry ever to be created in Ghana’s history- the Ministry of Special Development Initiatives”.
Franklin Cudjoe
Cudjoe noted that analysts increasingly voiced their frustration with the Economic Management Team, criticizing what they saw as a dereliction of duty, lack of responsiveness, and an apparent inability to devise effective solutions to Ghana’s escalating economic crisis.
These shortcomings, he noted, compounded the public’s sense of disillusionment and eroded trust in the team’s leadership capabilities.
He lamented that these burdensome measures remain in effect, including the E-Levy and over 39 other punitive taxes, such as the controversial COVID-19 recovery tax.
He expressed particular concern over the mismanagement of the latter, citing a special audit by the Auditor-General that revealed only 25–30% of all COVID-19 funds were actually used for pandemic-related expenses.
This, he argued, highlights a significant breach of public trust and a troubling pattern of financial mismanagement. “You want to believe in the profligacy of the laziest, arrogant, incompetent, and finally most corrupt and expensive lot we live by today? Good luck!”
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