Bright Simons, Vice President of IMANI Ghana, has cast doubt on the feasibility of Ghana’s 2025 budget, highlighting concerns over low execution rates, rising contingent liabilities, and weak governance in state-owned enterprises (SOEs). His critique comes amid Ghana’s efforts to balance expansionary fiscal policies with IMF-backed fiscal consolidation.
In an interview with CNBC, Simons noted that Ghana has historically struggled with budget execution, particularly in capital-intensive sectors. Between 2016 and 2020, the agricultural sector saw only 41% of its allocated funds executed, compared to Ivory Coast’s 94% overall budget execution rate in 2023.
He warned that low execution rates hinder infrastructure development, as evidenced by Ghana’s declining gross fixed capital formation, which has halved since 2010. The government has pledged to introduce stricter financial controls, requiring commencement certificates before initiating new contracts, but Simons remains sceptical due to gaps in the country’s medium-term expenditure frameworks (MTEFs).
Simons also flagged Ghana’s growing contingent liabilities, which exceed $13 billion—$7 billion of which is tied to the road sector. He attributed these financial burdens to weak budget discipline and poor alignment between contracts and available funding, warning that without urgent reform, Ghana risks further fiscal strain.
State-Owned Enterprises Under Scrutiny
Turning to SOEs, Simons criticized the lack of accountability, stating, “No SOE board has ever been fired for non-performance in Ghana since 1990.” He cautioned that repeated bailouts and recapitalizations without strict performance oversight encourage inefficiency and financial waste.
To address this, he proposed suspending board perks and remuneration for underperforming SOEs, appointing turnaround specialists, and implementing aggressive management restructuring. However, he acknowledged that politically motivated appointments remain a significant obstacle to financial discipline.
Simons’ concerns fuel ongoing debates about Ghana’s fiscal trajectory. As the government navigates economic recovery, debt management, and public sector efficiency, stakeholders will be watching closely to see whether meaningful reforms are implemented to enhance budget credibility and improve SOE performance.
