The Director of Communication for Dr. Bawumia Campaign, Dennis Miracle Aboagye has outlined the turbulent economic period Ghana experienced post-COVID, particularly between January and December 2022.
Miracle Aboakye emphasized that “between January 2022 and December 2022 was one of the most difficult periods within the last eight years in terms of the economy.” The Cedi faced significant devaluation, with exchange rates peaking at GHS17 to GHS20 per dollar in November 2022. Inflation also surged, reaching 54%. Aboagye’s remarks captured how Ghana’s heavy import dependency exacerbated the situation.
“Once our currency is agitated, it affects every aspect of our economy because we are heavily import-dependent.”
Dennis Miracle Aboagye the Director of Communication for Dr. Bawumia Campaign
Miracle Aboagye defended the government’s Gold-for-Oil program, calling it a necessary intervention during a time of crisis. He explained that the program sought to reduce the demand for dollars by using gold to procure oil instead.
“What the Gold-for-Oil program did was to introduce some sort of a barter trade to reduce our demand for the dollar.”
Dennis Miracle Aboagye the Director of Communication for Dr. Bawumia Campaign
Without this strategy, Aboagye noted that the economic turbulence could have been worse.
“Even with that, look at how much we felt the turbulence, and so without that, it could even have been worse.”
Dennis Miracle Aboagye the Director of Communication for Dr. Bawumia Campaign
The program reduced Ghana’s monthly need for approximately $400 million to import crude oil, helping to alleviate the pressure on the Cedi. Instead of sourcing dollars, the country used gold to procure oil, creating a more sustainable system of exchange.
Moreover, Miracle Aboagye addressed concerns raised by critics like Professor Steve Monte, who had questioned the transparency of the Gold-for-Oil deal. Aboagye dismissed these criticisms, saying; “I think he’s overstretching it,” Miracle Aboagye emphasized that all necessary reports on the program are publicly available.
“The Bank of Ghana (BoG) and the Bulk Oil Storage and Transportation Company (BOST) produce weekly reports on Gold-for-Oil. There’s nothing opaque about it.”
Dennis Miracle Aboagye the Director of Communication for Dr. Bawumia Campaign
Miracle Aboakye encouraged those questioning the deal’s transparency to utilize the Right to Information (RTI) law to request specific details. Aboagye criticized those who, in his view, assumed corruption without having complete information.
“The fact that you don’t know about something doesn’t mean there is wrongdoing. So, before you conclude on wrongdoing, be sure that you have all the information.”
Dennis Miracle Aboagye the Director of Communication for Dr. Bawumia Campaign
Institutionalizing the Gold-for-Oil Program
Miracle Aboagye reiterated Vice President Dr. Mahamudu Bawumia’s call to institutionalize the Gold-for-Oil program, stating that formalizing it could yield long-term benefits for the economy.
“This was a midstream strategy introduced in the middle of a crisis. Surely, there may be areas that we need to tighten to formalize it.”
Dennis Miracle Aboagye the Director of Communication for Dr. Bawumia Campaign
Institutionalizing the program, according to Miracle Aboagye, would help ensure its sustainability and efficiency, which aligns with the government’s broader economic goals.
Miracle Aboakye highlighted that the strategy is not only about oil but could be expanded to other sectors as well, further reducing Ghana’s reliance on foreign currency.
“we can expand even the barter trading…there may be other things that we could now go for, so that all we are trying to do is to reduce our demand, our looking, our search for dollars.”
Dennis Miracle Aboagye the Director of Communication for Dr. Bawumia Campaign
Boosting Local Participation in the Minerals Sector
Beyond oil, Miracle Aboagye outlined the government’s plans to boost Ghanaian ownership in the minerals extraction sector. Miracle Aboakye pointed out that currently, most local concession owners lack the financial muscle to mine, often resulting in foreign investors taking majority control.
Aboagye noted that the Mineral Development Bank, a policy proposal from the government, aims to reverse this trend by providing financial support to Ghanaian concession holders. “Let’s get the Ghanaian ownership increased in the minerals extraction sector, he emphasized.
The plan includes making geodata available to locals and simplifying the licensing regime to encourage more local participation.
Miracle Aboagye also emphasized the importance of local ownership of mineral resources, saying, “Make sure that, even for anything at all, it’s wholly Ghanaian-owned.” This strategy, Miracle Aboagye explained, could also prevent illegal mining practices, as locals would have the necessary resources to mine responsibly.
Miracle Aboagye pointed out that once the gold was mined, the government would purchase it in Cedis, further strengthening Ghana’s gold reserves and currency.
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