Ghana’s fragile gains and the gathering global storm: A call for collective effort

Story by Fada Amakye

Ghana’s economy is showing signs of recovery, with inflation moderating and key indicators stabilizing, President John Dramani Mahama said in his second State of the Nation Address. The moderation of inflation from a peak of 54% in 2022 to around 23% in 2024 has translated into slower increases in food, transport, and utility costs for households. Businesses are also benefiting from a relatively more stable cedi and improved supply conditions.

However, global events pose new threats, including a record crash in cocoa prices and escalating Middle East tensions. The cocoa price slump has forced Ghana to cut its producer price by 28.6% to GH¢41,392 per ton for the 2025/26 season, reducing revenue and squeezing farmer incomes. The Israel-Iran conflict has triggered global commodity market volatility, threatening Ghana’s import-dependent economy.

Higher oil prices could mean increased fuel costs, transport fares, and inflation. Ghana’s access to external financing may also be affected. President Mahama’s experience in navigating crises is an advantage, but collective action is needed. Ghanaians must adopt financial discipline, innovate, and unite to withstand the shocks.

The government should accelerate efforts to boost domestic food production and support SMEs. Diversifying the economy and increasing local production can help reduce reliance on imports and mitigate the impact of global commodity price volatility.

Households can adapt by prioritizing essential expenses, exploring alternative income sources, and adopting cost-saving measures. Businesses can innovate by investing in digital tools, renewable energy, and efficient logistics systems.