Possibly in response to widespread criticism of Finance Minister Ken Ofori-Atta's handling of Ghana's severe economic crisis, President Nana Akufo-Addo has announced a cabinet reshuffle, replacing Ofori-Atta with Mohammed Amin Adam, the current Minister of State at the finance ministry. The move comes as Ghana grapples with its worst economic downturn in a generation.
Ofori-Atta, a former banker, was overseeing the country's debt restructuring efforts following Ghana's default on most of its external debt in December 2022. The nation faced skyrocketing inflation and a sharp decline in the local currency. Street protests and calls for Ofori-Atta's resignation came from both opposition and ruling party MPs, but he survived the challenges.
The decision to replace Ofori-Atta, announced on Wednesday, precedes the upcoming December election, where Vice President Mahamadu Bawumia, an economist, aims to distance himself from the recent economic troubles as he seeks the presidency.
While the specific reason for Ofori-Atta's removal was not provided, analysts believe it may be an attempt to create a new narrative for Vice President Bawumia's electoral campaign. However, the overall reshuffle does not seem to indicate a clear shift in political strategy.
Akufo-Addo had appointed Ofori-Atta, a relative of his, as finance minister in 2017, pledging to stimulate job creation, combat poverty, and boost economic growth through tax cuts and regulatory reforms. Ghana's economy has shown signs of recovery following a $3 billion loan program with the International Monetary Fund and a recent deal to restructure $5.4 billion of loans with official creditors.
President Akufo-Addo, who has reached his two-term limit, will step down next year. Vice President Bawumia has been chosen as the ruling New Patriotic Party's presidential candidate for the upcoming election.