KEY POINTS
- Thomas Nyarko Ampem plans to reduce Ghana’s inflation to 8 percent.
- Strengthening the cedi and boosting food production are key strategies.
- Collaboration between ministries is essential for long-term economic stability.
Thomas Nyarko Ampem, Ghana’s Deputy Finance Minister-Designate, has pledged his commitment to reducing the country’s inflation rate to 8 percent.
Speaking before the Appointments Committee on February 24, he acknowledged the difficulty of the task but emphasized that it remains achievable with the right economic policies.
Ampem asserted that food inflation served as the biggest price driver accounting for the global increase in inflation, hence making food cheaper remains essential to fight inflation effectively.
The Finance Ministry pursues close partnership with the Ministry of Agriculture to enhance food output while upgrading distribution networks.
Ampem explained that Ghana’s high import dependency and cedi currency depreciation act as main causes behind inflation in the country.
A steady cedi exchange rate, according to him, would reduce inflation in all sectors.
Strengthening the cedi to curb inflation
Ghana’s economy relies heavily on imports, which makes it vulnerable to fluctuations in the exchange rate.
According to Graphic Online, Ampem explained that when the cedi weakens, it has a direct impact on inflation, raising the cost of goods and services.
“You know we are an import-dependent country, and when the cedi depreciates, it has a passthrough effect on inflation—though not perfect.
So, if we can strengthen the cedi, we would also be succeeding in our quest to bring inflation down,” he stated.
As part of broader efforts to address the economic challenges, Ampem emphasized the need for a comprehensive strategy that includes stabilizing the exchange rate, increasing domestic food production, and implementing policies that reduce Ghana’s reliance on imports.
A commitment to economic growth
Ampem’s vetting before the Appointments Committee also touched on the broader economic vision for Ghana.
The importance of budgetary restraint, increased financial income and specific cuts to government spending was his main emphasis.
He emphasized the need for enhanced ministry coordination to prevent economic policies targeting inflation from causing problems in other national sectors.
By working with the Ministry of Agriculture and the Bank of Ghana, he hopes to create a balanced approach that strengthens the economy while maintaining sustainable inflation levels.
His approval for this role would establish him as the lead official directing Ghana’s economic recovery plan to fight inflation, stabilize currency rates and strengthen food supplies across the country.
