Which of your ‘old’ concepts diminished buck fee or gas costs? Kobby Mensah to Oppong Nkrumah

Date: December 30, 2025 | Category: Politics & Economy | Reading Time: 8 Minutes

The discourse surrounding Ghana’s economic management has intensified following a heated exchange between Professor Kobby Mensah, Chief Executive of the Ghana Tourism Development Company (GTDC), and the Minority in Parliament. The conflict stems from the Minority’s critique of the current administration’s fiscal policies, specifically regarding the Bank of Ghana’s Gold-for-Reserves programme.

Prof. Mensah, an Associate Professor at the University of Ghana Business School, has responded sharply to the Minority’s accusations, challenging their track record regarding historical currency exchange rates and fuel prices. This article provides a comprehensive pedagogical breakdown of the arguments, the economic context, and the verifiable data behind the claims.

Introduction

In the volatile arena of Ghanaian political economy, narratives often clash regarding who is best positioned to manage the nation’s resources. The latest friction point occurred on December 29, when the Minority in Parliament, led by former Information Minister Kojo Oppong Nkrumah, held a press conference accusing the ruling government of incompetence in asset allocation.

The Minority specifically targeted the Gold-for-Reserves programme, alleging significant financial losses to the state. In a counter-offensive on social media platform X (formerly Twitter), Prof. Kobby Mensah dismissed the Minority’s criticisms as lacking practical substance. He pivoted the conversation to historical performance, asking a provocative question regarding which “old concepts” previously drove the British Pound and US Dollar exchange rates down, alongside fuel prices.

This analysis explores the validity of these claims, the context of the Gold-for-Reserves programme, and the economic indicators cited by both parties.

Key Points

Background

To understand the current impasse, one must look at the timeline of events and the specific programs in question. The political discourse in late 2025 has been dominated by retrospective evaluations of economic policies.

The Minority’s Press Conference

On December 29, the Minority in Parliament staged a press conference to address what they perceive as a failure in capital injection and asset allocation by the current administration. Kojo Oppong Nkrumah, speaking on behalf of the group, argued that the government has not introduced any superior economic concepts.

Instead, Oppong Nkrumah claimed the administration has been “rebranding” and “renaming” existing initiatives without substantive change. He highlighted the Gold-for-Reserves programme as a key area of concern, suggesting that the details of the program were hidden from the public until the Minority intervened.

The Gold-for-Reserves Programme

The Bank of Ghana’s Gold-for-Reserves programme is a strategic initiative designed to bolster the country’s foreign exchange reserves by exchanging gold for foreign currency or using gold as collateral. The goal is to stabilize the Ghanaian Cedi and provide a buffer against external shocks.

The Minority alleges that this program has resulted in a massive loss of $214 million for the state. They are calling for a bipartisan parliamentary inquiry to investigate the management of the program and the alleged financial mismanagement.

Prof. Kobby Mensah’s Entry

Prof. Kobby Mensah, a prominent voice in business academia and public policy, intervened to defend the government’s record. His response was not merely a defense of current policies but a direct challenge to the credibility of the Minority’s critique based on their own history while in power.

Analysis

This section breaks down the validity and context of the claims made by both sides. It is crucial to distinguish between political rhetoric and verifiable economic data.

Deconstructing the “Old Concepts” Challenge

Prof. Mensah’s challenge—“Which of your ‘old’ ideas reduced the pound sterling from 23 cedis to 14? The dollar from 16 cedis to 11? Or reduced fuel from 20 cedis per litre to 10.37?”—is a rhetorical device intended to highlight periods of economic stability under previous administrations.

However, a pedagogical analysis requires looking at the economic mechanisms behind these price drops. Currency appreciation and fuel price reductions are complex.

• Currency Exchange Rates: A decrease in the exchange rate (e.g., the Dollar moving from 16 to 11 GHC) represents an appreciation of the Ghana Cedi. This is generally considered positive for import costs and inflation control. Such movements are usually driven by strong export earnings (cocoa, gold), foreign direct investment, or prudent monetary policy by the Central Bank.
• Fuel Prices: Fuel prices in Ghana are determined by the National Petroleum Authority (NPA). Price drops can result from lower global crude oil prices, a stronger local currency (making imports cheaper), or adjustments in tax/levy structures.

Mensah’s argument implies that the Minority (often associated with the New Patriotic Party – NPP) presided over periods where these positive economic indicators occurred. By asking “which of your old concepts,” he is challenging the Minority to claim credit for these successes if they wish to critique current failures.

The Gold-for-Reserves Controversy

The Minority’s claim of a $214 million loss requires scrutiny. In central banking, “losses” can be accounting entries based on valuation changes or forward contracts.

If the Bank of Ghana buys gold at a certain price and the global market price drops, there may be a notional loss. However, the strategic intent of the program is long-term stability rather than short-term profit taking. The “loss” narrative is often weaponized in political debates to suggest incompetence, while proponents argue it is a necessary cost for reserve diversification.

The “Rebranding” Accusation

Oppong Nkrumah’s claim that the government is merely rebranding old ideas is a common tactic in opposition politics. In reality, economic policy is often evolutionary. Governments may tweak existing frameworks (like the Gold-for-Reserves or IMF programs) rather than inventing entirely new economic systems, which carries high risk.

Practical Advice

For citizens and investors trying to navigate these conflicting political narratives and make sense of the economic landscape, the following practical advice is recommended:

How to Verify Economic Claims

Political figures often use selective data points. To get a true picture of economic health:

• Check the Bank of Ghana Reports: The central bank publishes quarterly reports on reserves, monetary policy, and the gold purchase program. These are the primary sources for data on the Gold-for-Reserves programme.
• Consult the National Petroleum Authority (NPA): For fuel price verification, the NPA publishes official data on ex-pump prices and the build-up of prices (Levy, ROGet, etc.).
• Review Historical Exchange Data: Use the Bank of Ghana’s historical data to verify claims like “Pound at 23 vs 14.” Note that exchange rates fluctuate daily and are influenced by global markets, not just government policy.

Understanding Economic Context

When a politician says “we reduced fuel to 10.37,” ask for the context. Was the global price of oil low at that time? Was there a specific tax holiday? Understanding the causes of price changes prevents falling for misleading political credit-taking.

FAQ

Conclusion

The exchange between Prof. Kobby Mensah and the Minority, led by Kojo Oppong Nkrumah, highlights the cyclical nature of political accountability in Ghana. While the Minority focuses on alleged current mismanagement of the Gold-for-Reserves programme and a lack of new economic ideas, Prof. Mensah effectively shifts the spotlight to historical performance.

By challenging the Minority on specific metrics like currency strength and fuel prices during their era, Mensah forces a comparative analysis rather than a purely critical one. For the average Ghanaian, the lesson is clear: economic management is complex, and successful outcomes often depend on global conditions as much as local policy. Verifying claims through the Bank of Ghana and NPA data remains the best way to cut through the political noise.

Sources

• Multimedia Group Limited: Original reporting on the Minority press conference and Prof. Kobby Mensah’s response.
• Bank of Ghana (BoG): Data on historical exchange rates (GBP/USD), Gold Purchase Programme reports, and monetary policy statements.
• National Petroleum Authority (NPA): Historical data on petroleum price build-ups and ex-pump prices in Ghana.
• University of Ghana Business School: Faculty profiles and publications regarding public policy and economic strategy.