Ghana Requires 15 Years of Consistent Reforms for Economic Transformation – Prof. Bokpin

Ghana may need approximately 15 years of sustained reforms, strategic investments, and consistent economic policies to convert its restored macroeconomic stability into meaningful economic transformation, according to Economist Professor Godfred Alufar Bokpin.

The Professor of Finance at the University of Ghana Business School (UGBS) argues that stabilising the economy represents only the first phase of the recovery process, with the more formidable challenge being the creation of productive jobs, expansion of businesses, and tangible improvements in living standards.

Speaking in an interview on the sidelines of the National Policy Dialogue on Philanthropy and Social Investment in Accra, Prof. Bokpin emphasised that countries which have successfully transformed their economies did so through sustained policy direction and coordinated reforms over several years, rather than through short-term measures driven by individual budget cycles.

"Normally, moving from macroeconomic stability to greater economic transformation takes close to 15 years of doing the right thing consistently and the necessary reforms bundled together reinforcing each other," he said.

Caution Against Over-Reliance on Expenditure Cuts

While acknowledging the government's progress in restoring macroeconomic stability, Prof. Bokpin cautioned that excessive reliance on expenditure cuts could undermine private sector growth and weaken the foundations for a broader economic recovery.

He pointed to a reduction of more than 47% in government expenditure on goods and services before 2025, noting that although the adjustment helped narrow fiscal deficits, it also adversely affected small businesses that depend on government contracts.

The economist stressed that the next phase of economic management must shift towards productive spending and investments capable of stimulating domestic business activity, building industrial capacity, and creating employment opportunities.

Priority Sectors for Investment

Prof. Bokpin identified agriculture, agribusiness, agro-processing, and rural-urban road infrastructure as priority areas for strategic investment. He argued that improved productivity and enhanced connectivity would create opportunities for businesses and strengthen overall economic activity.

He also called for greater integration of artificial intelligence and digital technologies into economic management to raise productivity, improve revenue mobilisation, and reduce inefficiencies within the system.

Citing China's development experience as a reference point, Prof. Bokpin noted that strategic investments in technology and infrastructure could accelerate Ghana's transformation by supporting productivity and growth from the grassroots level.

Government's New Economy Agenda

Meanwhile, the government is expected to outline details of its New Economy Agenda in the 2027 Budget, scheduled to be presented to Parliament in the coming weeks. The budget is anticipated to provide further insight into the administration's economic transformation roadmap, including specific policy interventions and investment priorities aimed at sustaining the current stability while catalysing long-term growth.

Prof. Bokpin's remarks come at a critical juncture as Ghana navigates the delicate balance between fiscal consolidation and the need to stimulate productive sectors of the economy. His call for a sustained, multi-year approach to reform underscores the complexity of the transformation challenge facing the West African nation, even as signs of macroeconomic stabilisation continue to emerge.

Reporting by Emmanuel Oppong

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Background and Context

Ghana has recently emerged from one of its most severe economic crises in decades, characterised by soaring inflation, currency depreciation, and unsustainable debt levels that necessitated a $3 billion International Monetary Fund (IMF) bailout programme in 2023. The country completed a significant debt restructuring exercise and has seen inflation decline from its peak of over 54% in December 2022 to more manageable levels, alongside relative stability in the exchange rate.

However, economists have consistently warned that stabilisation alone does not guarantee transformation. Ghana's economy remains heavily dependent on cocoa, gold, and oil exports, with limited diversification and a large informal sector that employs the majority of the workforce. Successive governments have launched various industrialisation initiatives—including the One District One Factory programme and the Planting for Food and Jobs initiative—but structural transformation has remained elusive.

Prof. Bokpin, a respected voice in Ghanaian economic discourse, has been a consistent advocate for productive investment over consumption spending. His call for a 15-year horizon echoes the experiences of successful transforming economies in East Asia, where sustained industrial policy and infrastructure investment over decades produced significant structural change.

The government's New Economy Agenda, expected to be detailed in the 2027 Budget, is anticipated to focus on private sector-led growth, digital economy development, and value addition in agriculture and mineral resources. Whether it can deliver the sustained, coordinated approach that Prof. Bokpin advocates will depend on political stability, institutional capacity, and the ability to maintain policy consistency beyond electoral cycles.