Africa’s growth prospects bright but fragile – BoG Governor

Bank of Ghana Governor, Dr. Johnson Pandit Asiama, has lauded Africa’s economic resurgence but cautioned against underlying vulnerabilities.

He stated high borrowing costs, weak buffers, and fiscal strain could threaten the continent’s stability if left unchecked.

Addressing the Bank of Ghana–Bank of England Pan-African Central Bank Governors’ Conference in Accra, Dr. Asiama noted that Africa’s economy is on a promising path but remains fragile. “Growth is returning — projected at 4.1 percent in 2025, above the global average — and inflation across Sub-Saharan Africa, which averaged 21.6 percent in 2023, is easing. But beneath this progress lies fragility,” he cautioned.

He said African economies must continue to pursue credible, disciplined, and coordinated policies to sustain the gains made in recent years. “Our stability is real — but it is still young, still being tested,” he remarked.

The Governor emphasized that Africa’s resilience story must be built on reform, collaboration, and knowledge-sharing. He praised the long-standing partnership between the Bank of Ghana and the Bank of England, describing it as more than technical cooperation. “The lessons we draw from it are not ours alone — they speak to a broader African story of resilience tested by global shocks and renewal shaped by our own reforms,” he said.

Dr. Asiama urged governors to strengthen peer-to-peer learning and collective decision-making. The conference, he explained, seeks to facilitate discussions on leadership, independence, and accountability, and to build a robust network of African central banks committed to excellence and reform.

Reflecting on the global inflation surge of 2022, he noted that African central banks acted decisively, raising policy rates by an average of 750 basis points between 2022 and 2024. “That was credibility in action — not because we were instantly right, but because we were consistently resolute,” he said.

Dr. Asiama concluded that Africa’s success will depend on the courage and integrity of its central bankers. “The true measure of our work will not be in the communiqués we sign but in the confidence we inspire — in our institutions and in the economies we serve,” he said.

Delegates from across Africa attended the event, which is focused on building credible, accountable, and resilient financial institutions across the continent.