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Economic Positive Aspects Should Be Sustainable Past 2028 – Osei Kyei-Mensah-Bonsu

Date: January 23, 2026 | Source: Life Pulse Daily / Asempa FM

Introduction

As Ghana navigates a complex economic landscape, the conversation regarding the durability of its financial recovery has taken center stage. While recent data points to a stabilization of the local currency and a decline in inflation, veteran politician and former Majority Leader, Osei Kyei-Mensah-Bonsu, is urging stakeholders to look beyond the surface. In a candid interview on Asempa FM’s Ekosii Sen programme, the former Suame Member of Parliament raised critical questions about the longevity of these gains, specifically targeting the period beyond 2028.

This article explores the nuances of Ghana’s current economic stability, dissecting Kyei-Mensah-Bonsu’s arguments regarding the difference between statistical recovery and real-world development. By examining the mechanisms behind the Cedi’s stabilization and the use of foreign reserves, we aim to provide a pedagogical understanding of why sustainable economic management is crucial for long-term national prosperity.

Key Points

Background

To understand the gravity of Osei Kyei-Mensah-Bonsu’s warnings, one must first look at the context of Ghana’s economic performance in early 2026. Following a period of high inflation and currency volatility, recent months have shown signs of recovery. The Ghana Cedi has stabilized against major trading currencies, particularly the US Dollar, and headline inflation has trended downward from its peak.

These improvements are often cited by economic managers as evidence of successful policy interventions. However, in the world of economics, the method of achieving stability is just as important as the stability itself. Kyei-Mensah-Bonsu, a seasoned legislator with deep insights into public finance, utilized the Ekosii Sen platform to dissect the underlying mechanisms of this recovery.

His intervention highlights a recurring theme in economic development: the distinction between short-term stabilization and long-term structural sustainability. For a developing economy like Ghana, ensuring that positive economic aspects endure beyond election cycles or specific target years (such as 2028) is a matter of national security and social stability.

Analysis: The Illusion of Stability?

Kyei-Mensah-Bonsu’s analysis centers on the integrity of the current economic data. While acknowledging that the “numbers look good,” he poses a critical pedagogical question: How is this stability being achieved?

The Role of Foreign Reserves

One of the primary mechanisms for stabilizing a currency is the intervention of the central bank using foreign exchange reserves. By selling US Dollars into the market, the supply of forex increases relative to demand, strengthening the local currency.

However, Kyei-Mensah-Bonsu warns that if the Cedi’s stability is solely dependent on the continuous depletion of foreign reserves, the situation is precarious. Foreign reserves are typically meant for emergencies, such as financing critical imports or weathering external shocks. Using them to artificially prop up the exchange rate—often referred to as “defending the currency”—can be likened to treating reserves as “consumption money.” If these reserves run dry, the Cedi could face a sudden and sharp depreciation.

The Debt Servicing Challenge

The former Majority Leader further highlighted the intersection between currency stabilization and public debt. Ghana has a significant external debt burden that requires servicing in foreign currency. Kyei-Mensah-Bonsu noted that using the same limited pool of foreign reserves to support the Cedi and pay off debts creates a zero-sum game.

If reserves are diverted to service debt, there is less available to stabilize the currency, and vice versa. This dual pressure raises the question of sustainability. If the government relies on these finite resources to manage current liabilities, what happens when reserves are exhausted? The risk is a return to macroeconomic instability, potentially worse than before.

Macro Indicators vs. Real Development

A central tenet of Kyei-Mensah-Bonsu’s argument is that economic management should not be an abstract exercise in balancing spreadsheets. “Managing the economy should translate into the development of the country,” he stated.

This distinction is vital. A reduction in inflation (disinflation) is positive, but if the cost of living remains prohibitively high relative to incomes, the statistical gain is meaningless to the average Ghanaian. Similarly, a stable exchange rate is beneficial for importers, but without corresponding growth in production and investment, the broader economy does not advance. Kyei-Mensah-Bonsu is advocating for an economic model where stability serves as a foundation for investment, not an end in itself.

Practical Advice: Ensuring Economic Sustainability

To ensure that the positive aspects of Ghana’s economy remain sustainable past 2028, policymakers and citizens must focus on structural adjustments rather than temporary fixes. Here are key strategies for achieving long-term economic resilience:

1. Boosting Export Earnings

The most sustainable way to support the Cedi is to increase the inflow of foreign exchange through exports. Reliance on reserves is temporary; reliance on exports is permanent. Policies that support value addition in key sectors—such as agriculture (cocoa, shea), mining, and manufacturing—can generate the hard currency needed to naturally stabilize the exchange rate.

2. Diversifying Revenue Sources

To avoid the trap of using reserves for debt servicing, the government must broaden its domestic revenue base. This involves improving tax compliance, expanding the tax net, and reducing wastage in public expenditure. A robust domestic revenue stream reduces the need to dip into foreign reserves for routine debt payments.

3. Fostering Private Sector Investment

Kyei-Mensah-Bonsu emphasized that economic management must affect citizens. The private sector is the engine of growth. Creating a stable policy environment, reducing the cost of doing business, and ensuring access to credit can encourage local and foreign direct investment (FDI). When businesses invest, they create jobs and increase productivity, which reinforces economic stability.

4. Prudent Fiscal Management

Sound financial advertising (or management) must be backed by fiscal discipline. This means avoiding populist spending that is not backed by revenue. By aligning government spending with realistic revenue projections, the pressure on the currency and reserves can be minimized.

FAQ

Conclusion

Osei Kyei-Mensah-Bonsu’s commentary serves as a crucial reminder that economic statistics, while important, are not the sole measure of a nation’s health. The stabilization of the Cedi and the decline in inflation in early 2026 are welcome signs, but the true test lies in the durability of these metrics.

By questioning the sustainability of using foreign reserves and emphasizing the need for development that directly impacts citizens, Kyei-Mensah-Bonsu provides a roadmap for responsible governance. For Ghana to secure a prosperous future beyond 2028, the focus must shift from temporary fixes to long-term, productivity-driven growth. Only then can the positive aspects of the economy be considered truly sustainable.

Sources

• Life Pulse Daily. (2026, January 23). Economic positive aspects should be sustainable past 2028 – Osei Kyei-Mensah-Bonsu.
• Asempa FM. (2026, January 23). Ekosii Sen Programme. Multimedia Group Limited.