Following the Bank of Ghana’s 300-basis-point policy rate reduction, Pentecost University economist Dr. Paul Appiah Konadu asserts the move transcends monetary stabilization—calling it a “golden opportunity” to redirect investment toward agriculture and industry.
While business groups like GUTA and GNCCI welcome the cut, Konadu emphasizes its potential to transform real-sector productivity amid emerging economic recovery.
Ghana’s macroeconomic stability—marked by a strengthening cedi, declining inflation (lowest in over two years), and growing reserves—creates fertile ground for stimulus, Konadu notes. “We are achieving stability… indicators point to resilience,” he told The High Street Journal, urging tangible gains beyond statistics. The rate slash now enables affordable credit for sectors long hampered by high borrowing costs.
Agriculture stands to benefit immediately: cheaper machinery imports can accelerate agro-processing, value addition, and food security. Konadu champions import-substitution industrialization, stating lower cedi-based equipment costs make this “the time to unlock credit-funded investments.” He acknowledges inflation risks but argues productive investments in mechanization and industry can absorb stimulus without price surges.
The economist frames the cut as strategic timing to shift from austerity to growth. “By lowering credit costs, the central bank signals investors to act,” he said, highlighting alignment with Ghana’s post-IMF reform momentum.
