2022 economic turmoil wasn’t caused by mismanagement — Dr Domfe

The founding President of the Africa Policy Lens, Dr. George Domfe, has dismissed claims that Ghana’s 2022 economic crisis was due to government mismanagement.

He said the sharp depreciation of the cedi, high inflation, and rising cost of living were largely the result of global shocks, not poor policy decisions.

The year 2022 was marked by a steep decline in the value of the Ghana cedi against major foreign currencies and soaring prices of goods and services.

The then Nana Akufo-Addo-led New Patriotic Party (NPP) government blamed the turbulence on the COVID-19 pandemic and Russia’s invasion of Ukraine.

However, the opposition National Democratic Congress (NDC), now in power, rejected this explanation at the time, accusing the NPP of running the economy “into a ditch.”

Reacting to the debate in a 2025 interview, Dr. Domfe insisted that the data supports the position of the previous government.

“The truth is that the 2022 economic turmoil was externally driven. For 61 good months, the Ghanaian economy was stabilised with inflation well below the 15.4% inherited from the previous administration,” he said.

The renowned economist explained that Ghana’s reserves were strong before the external shocks hit.

“Then suddenly, the Russian-Ukrainian crisis came from nowhere. Germany recorded its highest inflation in 70 years. Both the US and UK recorded their highest inflations in 40 years. Oil moved from $72 a barrel to $121 a barrel. Above all, freight charges went up by 300%,” he recounted.

The renowned economist emphasizes that the rapid depletion of reserves left the cedi vulnerable.

“By August 2022, the Bank of Ghana had almost run out of reserves and $1 was exchanged for GH¢8.2. Unfortunately, with no buffer, the cedi had no protection, and by October 2022, $1 was going for GH¢15 on the interbank market and GH¢17 on the forex market,” he stated.

Dr. Domfe stressed that “No economist anywhere in the world can attribute the 2022 economic turmoil to mismanagement. Facts and figures don’t support such assertions.”