Abena Osei-Asare, the former Minister of State at Finance, criticized President Mahama’s State of the Nation Address for neglecting economic recovery under the NPP. She cited improved financial stability and growth indicators while challenging Mahama’s claims regarding debt management and fiscal policies. Osei-Asare urged for responsible governance and cautioned against unsustainable spending, emphasizing a need for forward-looking leadership.
Former Minister of State at Finance, Abena Osei-Asare, responded critically to President John Mahama’s recent State of the Nation Address (SONA). She accused him of neglecting the strides made in economic recovery under the previous NPP administration while casting a narrative of economic collapse. Osei-Asare emphasized that the NPP recognized the challenges Ghana faced but implemented decisive actions that set the economy on a recovery path, ultimately earning a positive assessment from the IMF.
Ms. Osei-Asare countered Mahama’s portrayal of the financial sector, asserting that it was significantly stronger at the end of the NPP’s tenure than suggested. She noted that depositor funds were protected during necessary financial sector reforms, preventing a collapse. The banking sector’s assets surged from GH¢81.2 billion in December 2016 to GH¢367.2 billion by October 2024, with private sector credit increasing substantially amidst a recovery.
She further addressed claims about Ghana’s international reserves, asserting that they improved from $5.9 billion in December 2023 to $7.7 billion in October 2024, covering 3.5 months of imports. Osei-Asare highlighted the cedi’s stability, moving from GH₵12.4 per dollar in December 2023 to GH₵14.50 in December 2024, reflecting a manageable depreciation despite global pressures.
The former minister criticized Mahama for failing to recognize the resources available for debt servicing that the NPP left for the new administration, including the GH¢6 billion paid to bondholders that Mahama praised. She pointed out Mahama’s selective highlighting of a $250 million sinking fund in 2016 while neglecting the $1 billion owed in external debt repayments due in 2017, which the NPP had to manage.
Rejecting President Mahama’s assertions of economic mismanagement by the NPP, Osei-Asare cited positive economic indicators, including a real GDP growth rate of 6.3% in 2024, primarily driven by the industrial sector’s 10.4% growth. Additionally, she noted that the total revenue exceeded targets, underscoring clear signs of economic recovery prior to the government transition.
Osei-Asare expressed concern over Mahama’s ambitious social intervention proposals lacking a robust funding strategy, stating that responsible economic planning should precede large-scale programs. She cautioned against a return to excessive public spending reminiscent of past administrations that led to an IMF bailout in 2015.
On Mahama’s proposed National Economic Dialogue, she remained skeptical, viewing it as a politically motivated endeavor. Instead, she urged the need for decisive policy execution to ensure effective governance and warned against deferring responsibilities through unnecessary consultations.
In conclusion, Osei-Asare called upon President Mahama to shift focus from political blame to working collaboratively for Ghana’s future. She stressed that strong leadership should prioritize effective economic policies and initiatives while cautioning against misleading narratives that could threaten the country’s economic stability.
Abena Osei-Asare’s response to President Mahama’s SONA highlights the contrasting narratives about Ghana’s economic status. Her assertions regarding the management of the financial sector, improvements in economic indicators, and the need for responsible fiscal policies underscore her commitment to addressing misrepresentations. Ultimately, she advocates for leadership that prioritizes progress rather than engaging in retrospective blame.
Original Source: www.myjoyonline.com
