IEA recommends extended term for BoG Governor to ensure accountability

The Institute of Economic Affairs (IEA) is calling for significant amendments to the Bank of Ghana Act 2016.

The IEA advocates for a particular focus on extending the governor’s tenure to ensure continuity and insulate the position from presidential terms.

At a Stakeholders’ Forum titled “Reviewing the Bank of Ghana’s Act to Promote Transparency, Accountability, and Effectiveness,” Senior Scholar Prof. Alexander Bilson Darku highlighted the IEA’s stance on safeguarding the central bank from undue governmental influence over the governor’s tenure and conditions.

According to Prof. Darku, this proposed amendment aims to strengthen Ghana’s economic stability by enhancing the independence and effectiveness of the regulatory institution.

He emphasised that maintaining the governor’s autonomy is crucial for upholding the apex bank’s transparency, accountability, and overall effectiveness.

“We began by examining the composition of the Bank of Ghana’s board, the governor’s appointment process, and the regulatory framework governing government lending limits.”

“There was a consensus on the necessity for Ghana to carefully consider aligning the term of the Bank of Ghana Governor to overlap that the of President to ensure continuity and effectiveness in governance,” he said.

In 2021, Dr Ernest Addison, the governor of the Bank of Ghana (BoG), was given another four-year term in office.