Ghana was once a rising star in Africa's international education landscape. Between seven and four years ago, the country saw significant growth in its ability to attract international students, thanks to its high-quality educational institutions, relative political stability, and strategic geographic location. Universities such as the University of Ghana, Kwame Nkrumah University of Science and Technology (KNUST), and Ashesi University gained a reputation for academic excellence, particularly among students from neighbouring West African countries.

However, recent economic trends have dampened this growth. Ghana’s dollar-centric economy, coupled with the reluctance of educational institutions to adjust tuition fees to align with the current African economic climate, has caused a decline in international student recruitment. The pressing question now is whether Ghana's education sector can maintain transactions in Ghanaian Cedis (GHS) and adapt to the shifting economic landscape.

The Impact of a Dollar-Centric Economy

Ghana's reliance on the U.S. dollar for international transactions has created significant challenges for students from countries with weaker currencies. As the Ghana Cedi continues to depreciate against the dollar, tuition fees—often denominated in dollars—have become prohibitively expensive for many prospective students across Africa.

For example, a Nigerian student paying $5,000 in tuition fees would face steep costs when converting Naira to dollars amidst fluctuating exchange rates. This financial strain deters many students from considering Ghana as a study destination, pushing them to explore more affordable alternatives like South Africa, Rwanda, or even local options in their home countries.

Resilience from Ghanaian Institutions

Despite the economic challenges, many Ghanaian institutions have been resistant to lowering tuition rates or transitioning to local currency transactions. This resistance stems from a dependence on dollar-denominated income to cover operational costs, many of which are also tied to foreign currencies. Salaries for international faculty, the importation of academic materials, and infrastructure development projects are often funded in dollars, making it difficult for institutions to switch to transactions in Ghanaian Cedis.

However, this rigidity has come at a cost. International student enrolment has declined as institutions are perceived to be unresponsive to the economic realities faced by their target demographic.

The Case for Ghana Cedis in the Education Sector

Transitioning to Ghana Cedis for tuition and other fees could help make education more accessible to a larger pool of African students. By reducing dependency on the dollar, institutions could stabilize their pricing and make studying in Ghana a more attractive and affordable option.

To achieve this, the education sector must implement several strategic measures:

Government Support:
The Ghanaian government could introduce policies to support local currency transactions, such as subsidies for universities that adopt Cedi-based tuition or tax incentives for schools that prioritize local and regional students.

Currency Risk Mitigation:
Institutions could explore financial instruments like hedging to manage the risks associated with currency fluctuations. This would allow them to maintain operations while pricing tuition in Cedis.

Cost Optimization:
Universities could audit their operational costs and find areas to optimize spending without compromising academic quality. Reducing reliance on imported goods and services could help mitigate the impact of dollar dependency.

Regional Partnerships:
Ghanaian institutions could form partnerships with other African universities to create exchange programs, dual degrees, or collaborative research initiatives that reduce costs for students.

A Balancing Act for the Future

The decline in international student enrolment is a wake-up call for Ghana’s education sector. While maintaining tuition rates in dollars might seem financially prudent in the short term, it risks alienating a significant portion of the African student market.

Adopting the Ghana Cedi for transactions could not only boost enrolment but also demonstrate a commitment to regional inclusivity and economic resilience. However, this transition requires a collaborative effort between the government, educational institutions, and financial stakeholders to ensure sustainability.

The question remains: can Ghana’s education sector take the bold steps needed to adapt to the current economic climate? The answer will shape the future of the country’s position as a regional hub for international education.