Bokpin urges BoG to ease pace, says economic management “a marathon”

A Professor at the University of Ghana Business School, Godfred Bokpin, has cautioned the Bank of Ghana (BoG) against what he describes as an overly aggressive approach to managing the economy, emphasising that economic recovery requires patience and sustained effort.

Speaking in a media interview, Prof Bokpin stressed that economic management cannot be achieved within a short timeframe.

“Economic management is not a 100-metre journey, it is a marathon, that is why I will ask the Bank of Ghana to be less aggressive, this is not a hundred-metre journey, it is a marathon,” he said.

The economist further expressed optimism that the current government is on course to conclude the ongoing International Monetary Fund (IMF) programme successfully. He praised the administration’s strategy in steering the economy towards stability and urged President John Mahama to set new benchmarks for future leaders.

“We have enough data from the way we manage our affairs, especially when there is a regime change. President Mahama has an option not to go the way of Akufo-Addo, he should set a new marking scheme for the future to refer to. They are going to exit successfully,” he noted.

Prof Bokpin’s remarks follow comments by the Finance Minister, Dr Cassiel Ato Forson, who accused the former New Patriotic Party (NPP) administration of lacking the discipline needed to safeguard the economy.

“Prudent management and political will are what have helped to turn the tide. The NPP didn’t have it. All that the NPP needed to do was to be disciplined; unfortunately, they did not do that. We are ready to make a difference, and we are doing that,” Dr Forson said in a media interview.

His comments come amid heightened political debate over the state of the economy. The Minority in Parliament has intensified criticism of the Mahama administration’s handling of fiscal affairs.

Former Finance Minister Dr Mohammed Amin Adam, responding to the 2026 budget presentation, accused Dr Forson of failing to acknowledge what he described as the “disastrous auction performance” throughout 2025. According to him, persistent failures in government securities auctions reflect deep market distrust.

He revealed that out of 45 auctions conducted this year, 25 failed completely — a rate he described as unprecedented — indicating more than 55 per cent rejection of government paper.

“Investors are voting with their feet and their capital, demonstrating a clear preference for short-term instruments over any long-term commitments to a government they no longer trust in just 10 months now since they assumed office,” he said.

“This pattern of auction failures has created a vicious cycle: each failed auction forces the government to rely more heavily on expensive short-term borrowing, which in turn increases rollover risk and further undermines investor confidence. The cumulative shortfalls of GH¢17.5 billion represent not just a financing gap but a vote of no confidence in the government’s ability to manage the economy sustainably.”

Dr Amin Adam added that activity on the Ghana Stock Exchange during the budget week further underscored investor unease. He cited a 0.69 per cent dip in the GSE Composite Index and a 0.12 per cent decline in the Financial Stocks Index as evidence of scepticism surrounding the government’s economic assurances.

“This timing is no coincidence; it reflects sophisticated investors’ assessment that the budget promises of this Government lack credibility and implementation capacity,” he argued.

“When more than half of the auctions in a single year fail, it is not the market that is broken; it is the government’s credibility that has collapsed. Banks and financial institutions, traditionally the backbone of domestic financing, are increasingly reluctant to extend credit to a government that cannot honour its commitments. This credit crunch cascades through the economy, starving productive sectors of necessary capital and perpetuating the cycle of economic stagnation.”

The debate over Ghana’s economic direction continues to intensify as government and opposition figures trade views on the country’s path to recovery.