Ghana’s significant currency appreciation is creating substantial revenue shortfalls that threaten fiscal stability, prompting Deloitte Ghana to urge immediate government action.
The professional services firm warns that while the cedi’s 42.6% surge against the US dollar benefits consumers, it severely impacts dollar-denominated revenue streams vital to national finances.
Deloitte’s mid-year budget review reveals robust performance in Non-Oil Tax Revenue, Corporate Income Tax, and Mineral Royalties, but identifies critical underperformance in Grants, Petroleum Receipts, and Import Duties directly linked to the cedi’s strength.
This currency-driven revenue gap jeopardizes Ghana’s ability to meet its 2025 budget targets, according to the firm’s analysis. Deloitte notes that dollar-indexed revenue components weaken when the local currency appreciates, creating a paradoxical situation where macroeconomic improvement generates fiscal strain. Without corrective measures, the hard-won fiscal consolidation achieved in the first half of 2025 risks reversal before year-end.
Deloitte proposes two concrete solutions to safeguard fiscal stability.
The primary recommendation involves implementing proportional expenditure reductions matching the scale of revenue losses, arguing this would directly mitigate the deficit impact. Alternatively, the government could develop new sustainable revenue streams to counterbalance currency-related shortfalls. The firm specifically highlights Ghana’s untapped potential in property taxation as one viable avenue for immediate revenue enhancement.
The challenge for policymakers lies in balancing currency management with revenue protection. Deloitte emphasizes that maintaining Ghana’s macroeconomic stability requires prudent navigation between these competing priorities.
As the government weighs its options, the firm stresses that timely intervention is essential to preserve fiscal gains and ensure continued budget execution aligns with economic objectives amid evolving currency dynamics.
