10 Must-Know from the Finance Minister’s Presentation on Day One of the National Dialogue
- Ghana’s Economic Growth Lacks Transformation – Growth is driven by oil and mining, with little impact on productivity or economic diversification.
- Debt Levels Remain a Concern – Public debt surged from 20 percent of GDP in 2006 to 93 percent in 2022, limiting fiscal flexibility and increasing debt servicing costs.
- Job Creation Not Keeping Up – Despite GDP expansion, job opportunities remain scarce, especially in high-productivity sectors, worsening income inequality.
- Overdependence on Primary Commodities – Gold, crude oil, and cocoa made up 85.1 percent of Ghana’s exports in 2024, limiting economic diversification.
- Cocoa Sector in Crisis – Production has dropped nearly 50 percent in three years, causing an 840-million-dollar revenue loss, worsened by smuggling and farmer debt.
- Energy Sector Faces Financial Risk – A projected 9-billion-dollar financial shortfall by 2026 threatens energy stability due to inefficiencies and non-cost-reflective tariffs.
- Infrastructure Spending Faces Challenges – Despite 400 million dollars spent on Agenda 111, no hospitals have been completed, raising concerns about accountability.
- Tax Collection Remains Weak – Ghana’s tax-to-GDP ratio lags behind peers, with tax exemptions alone costing 3.9 percent of GDP.
- Ghana Needs Urgent Economic Reforms – GDP growth may slow to 3.8 percent without reforms, requiring fiscal discipline and institutional changes.
- Government‘s Focus Areas for Reform – Plans include improving revenue collection, restructuring state-owned enterprises, enhancing financial management, and cutting energy subsidies.
Ghana faces major economic challenges requiring urgent reforms. Without bold actions, rising debt, weak job creation, and inefficiencies could threaten long-term stability.
