Political Risk Analyst, Dr. Theophilus Acheampong has expressed his support for the new Ministerial appointment by President John Mahama, emphasizing the significance of their prior experience and the high expectations of their roles.
Dr. Acheampong particularly highlighted the appointments of key figures such as Hon. John Jinapor for the Energy Ministry, Hon. Dominic Akuritinga Ayine for the Attorney General’s position, and Hon. Ato Forson who he referred as his own Member of Parliament, who has been entrusted with an economic role.
He remarked that the new appointees were not “new names,” but rather individuals with substantial experience. He reiterated;
“They worked as deputy ministers under the previous NDC administration, and that’s given them some considerable experience in terms of how government works, also in terms of even at the level of parliament.”
Dr. Theo Acheampong Political Risk Analyst
This familiarity with the inner workings of government is seen as a critical advantage in meeting the demands of their new positions.
Dr. Acheampong further assessed the qualifications of the appointees. He reaffirmed;
“When you look at both the professional experience side of things and you look at even the academic record, on paper, everything indicates that they are the right picks for the job.’’
Dr. Theo Acheampong Political Risk Analyst
His endorsement of the new appointees’ expertise in their respective areas was evident, citing their past roles in governance and education as foundational to their expected success.
Dr. Acheampong also reflected on the reaction of financial markets to these appointments, specifically focusing on the finance minister’s position.
According to the analyst, there has been a largely positive reception from the global financial press, with outlets such as Bloomberg, Reuters, and the Financial Times covering the new government’s outlook.
This sentiment was corroborated by the way market signals, such as the performance of Eurobonds, have shifted positively.
Turning his attention to the economic landscape, Dr. Acheampong emphasized the urgent need for a coherent strategy to achieve sustainable economic growth in Ghana.
“If we want to eliminate a lot of the poverty and inequality in the economy and create decent jobs, it’s got to be growing above 7%, per annum.’’
Dr. Theo Acheampong Political Risk Analyst
He raised pertinent questions about how the newly appointed finance minister would approach the country’s fiscal challenges, particularly about the government’s proposed 24-hour economic concept.
Dr. Acheampong noted that addressing informality in the economy and expanding the tax net would be critical components of the finance ministry’s strategy.
“How do you engineer growth within the economy and growth that is both consistent, the growth that is decent and growth that is sustainable in terms of the jobs that it creates?”
Dr. Theo Acheampong Political Risk Analyst
The analyst highlighted the need for tax incentives and the scrapping of certain taxes, including the e-levy and COVID-19 taxes, to stimulate business activity and promote economic stability.
On the business front, Dr. Acheampong mentioned the necessity of reforming the VAT regime, specifically the input-output value-added tax system, as part of the broader fiscal reforms required to foster economic growth.
“All these things have to be done with a certain posture or mindset about engineering growth and creating jobs within the economy.’’
Dr. Theo Acheampong Political Risk Analyst
Monetary Policy and IMF Relations
Dr. Acheampong also delved into the challenges surrounding Ghana’s monetary policy, particularly inflation, exchange rate management, and the ongoing International Monetary Fund (IMF) program.
“The government is looking at possibly getting more money from the IMF than currently is,” he stated, noting that such an adjustment would likely necessitate extending the program’s duration from 2026 to 2027 or 2028.
“Possibly, maybe negotiate for a billion, or a billion and a half, but it means that the program parameters, some of the conditionalities, some of the reforms that have to be done would have to be renegotiated.”
Dr. Theophilus Acheampong Political Risk Analyst
He emphasized that while they bring significant expertise to their roles, the true test will be their ability to apply that knowledge to address the country’s most pressing economic issues.
Ultimately, while the road ahead is fraught with challenges, Dr. Acheampong remains cautiously optimistic about the new government’s prospects, based on their experience, qualifications, and the markets’ favorable reaction to the appointments.
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