IN response to mounting criticism over Ghana’s worst economic crisis in a generation, President Nana Akufo-Addo has announced a significant cabinet reshuffle, replacing Finance Minister Ken Ofori-Atta with Mohammed Amin Adam. The move comes amidst escalating dissatisfaction with Ofori-Atta’s leadership during the country’s economic downturn.
The decision to replace Ofori-Atta, who had been overseeing Ghana’s debt restructuring efforts following a default on most of its external debt in December 2022, was confirmed by the office of President Akufo-Addo. Mohammed Amin Adam, the current minister of state at the finance ministry and former deputy energy minister responsible for the petroleum sector, has been tapped as his successor. However, the official statement did not provide explicit reasons for the change.
Ghana faced severe economic challenges under Ofori-Atta’s tenure, with inflation skyrocketing above 50 percent and the local cedi currency experiencing a sharp decline. Amidst street protests and mounting pressure from both opposition and ruling party MPs, Ofori-Atta managed to retain his position. However, the recent cabinet reshuffle indicates a shift in Akufo-Addo’s approach as the country gears up for crucial elections in December.
Analysts suggest that the decision to replace Ofori-Atta could be a strategic move to reframe the narrative surrounding Vice President Mahamadu Bawumia’s presidential campaign. Bawumia, an economist, seeks to distance himself from Ghana’s economic woes and present a fresh perspective to voters. Bright Simons, an analyst at Accra-based think tank IMANI Africa, believes that the reshuffle may inject new momentum into Bawumia’s campaign.
‘There is a feeling that doing this… will create a much-needed new narrative for [the Vice President’s] slow-building campaign,’ Simons told Reuters.
Despite the change in leadership, observers note that the reshuffle does not signify a clear shift in political strategy by Akufo-Addo. Ofori-Atta, a relative of the president, was initially chosen for the finance minister role in 2017 with promises to stimulate job creation, alleviate poverty, and spur economic growth through tax cuts and regulatory reforms.
Ghana’s economy has shown signs of recovery following the government’s efforts to secure a $3bn loan programme with the IMF and a successful loan restructuring deal worth $5.4bn with official creditors. However, the challenges faced under Ofori-Atta’s stewardship have underscored the need for renewed leadership to navigate Ghana’s economic landscape.
As President Akufo-Addo prepares to step down next year due to term limits, and with Vice President Bawumia emerging as the presidential candidate of the ruling New Patriotic Party (NPP), the reshuffle reflects broader political dynamics shaping Ghana’s future trajectory.