While Ghana celebrates a significant increase in its foreign reserves, which reportedly hit $11 billion in 2025 on the back of strong gold and cocoa exports, a leading financial analyst has sounded a note of caution regarding the sustainability of this growth.
Nelson Cudjoe Kuagbedzi, the Head of Finance at Merban Capital, acknowledged the current financial strength but warned that the economy remains exposed to the underlining risks of commodity price volatility.
“We at Merban Capital have long projected the gross international reserve to hit about $12 billion by the end of year. This is against the backdrop of the fact that the external sector has been doing very well. So, the $11 billion is not surprising. As a result of this the cedi has been enjoying some relative stability, inflation down to single-digit and most of the economic indicators are doing well,” Kuagbedzi noted.
Speaking to 3Business, the finance expert observed that despite the growing in Ghana’s foreign reserves, there still exist underlining risks of commodity price volatility.
The analyst stressed that although the country must seize the opportunity presented by this export-driven windfall, the medium-to-long-term strategic imperative is economic diversification.
“Relying heavily on global prices for gold and cocoa, which have experienced favourable surges, leaves the national economy vulnerable to sudden and unpredictable external shocks. There is the need for value-addition,” he suggested.
Kuagbedzi’s remarks reinforce the need for the government to channel the current reserve surplus into structural reforms and industries that broaden Ghana’s economic base, ensuring resilience that is less dependent on two primary commodities.
By Eben Agyekum-Boateng, 3Business
