Without fiscal discipline, gains wouldn’t have come – Martin Kpebu on Ghana’s economic stability

Frank Ocansey

Editor, PulseView

Private legal practitioner Martin Kpebu has credited Ghana’s recent macroeconomic improvements to prudent fiscal management, arguing that the gains being experienced would not have been possible under excessive government spending.

Speaking on KeyPoints with Alfred Ocansey, Mr Martin Kpebu emphasised that indicators such as currency appreciation and declining inflation have had real, measurable impacts on the lives of ordinary citizens.

Table of Contents

Cedi strength and cost-of-living relief

According to him, the strengthening of the Ghana cedi in 2025 played a central role in easing the cost of living.

“When the exchange rate moved from about 14.7 to around 10 cedis to the dollar, we saw prices of goods coming down significantly,” he stated.

He noted that the appreciation of the currency translated into noticeable reductions in the prices of essential commodities, including food items such as rice and eggs.

Mr Kpebu further pointed to data indicating a sharp decline in food inflation during the period, with some reports suggesting that average food prices dropped by more than 30 percent in 2025.

Tangible benefits despite structural challenges

While acknowledging that unemployment remains a persistent issue, he maintained that many households experienced genuine relief.

“For many people, cost of living reduced. That is a fact we cannot ignore,” he said.

Fiscal discipline key to stability

Mr Kpebu argued that government’s commitment to fiscal discipline was instrumental in achieving these outcomes.

“If government had gone on excessive spending, we would not have seen these gains,” he stressed.

He added that tighter expenditure controls contributed to broader macroeconomic stability, including savings from debt servicing, which he said were partly driven by improved financial management and early debt repayments.

Role of domestic and external factors

Although he acknowledged that global dynamics; such as fluctuations in oil prices; may have supported the economic recovery, Mr Kpebu insisted that domestic policy decisions were the primary drivers of the recent stability.

He concluded that sustaining these gains would require continued discipline and strategic economic management to address long-term structural challenges.