To improve and fast-track Ghana’s path to economic development and prosperity for all citizens, the authorities have been urged to prioritize the country’s performance on the Economic Freedom Index.
Resident Fellow at the Fraser Institute, Fred McMahon argues that an economically free state is very critical in improving the socio-economic lives of all Ghanaians.
Fred McMahon made this proposal when he spoke at a seminar on Economic Freedom organized by the Africa Centre for Entrepreneurship and Youth Empowerment (ACEYE) on the theme “Economic Freedom and Intellectual Revolution; Empowering the next generation for Economic Prosperity” at the Academic City University.
Economic Freedom Index
The Economic Freedom Index (EFI) is a global ranking framework that measures the economic freedom of countries based on key policy areas that influence economic growth and prosperity. Some critical indicators are used to assess how free the economic and business environment of countries are. It is mostly published annually by institutions such as The Heritage Foundation and the Fraser Institute. Some of these indicators include Rule of Law, Government Size, Regulatory Efficiency, and Market Openness among others.
ACEYE has localized the index into a Regional Entrepreneurship Freedom Index in Ghana. The REF Index also assesses and evaluates the entrepreneurial ecosystem of Ghana’s 16 regions, providing comprehensive data for policymakers, investors, entrepreneurs, and other stakeholders to inform evidence-based interventions and reforms.
Ghana’s Performance on the Global Economic Freedom Index
Ghana’s economic freedom score stands at 56.0 in the 2025 Index of Economic Freedom, ranking 112th globally and 16th out of 47 countries in Sub-Saharan Africa. While the score has seen a slight 0.2-point improvement from the previous year, the country remains classified as “mostly unfree.” Ghana’s economic freedom level falls below the global average but remains above the regional average.
Critical areas that require attention on the index include government integrity, fiscal health, property rights, judicial effectiveness, labor freedom, trade freedom, etc.
To improve Ghana’s index, McMahon proposes several measures for the authorities to take into consideration.
Streamline Business Regulations
The resident fellow of Fraser Institute proposes that reducing bureaucratic red tape can facilitate business establishment and growth. Simplified tax preparation and minimized regulatory hurdles can empower entrepreneurs and stimulate job creation.
“The simplest thing, the easiest thing to do at first, is just cut the regulations. Let businesses be established and grow without tying them up in red tape where they have to go through hours of bureaucratic wiggle-wagging; even preparing their taxes is a chore,” he told The High Street Journal in an interview.
Reform Labor Laws
He further proposed that easing labor regulations can lower the cost of hiring, encouraging businesses to expand their workforce. Ghana’s current position is 112th globally in labor freedom suggests that stringent labor laws may be hindering employment opportunities.
He indicated that,” If you cut the red tape away from labour regulations, you’d see much more employment growth. And most importantly, you’d see employment growth in the formal sector where people can gain in skills and experience that will put them on a path to greater prosperity.
Strengthen Rule of Law
Fred McMahon maintained that Economic Freedom cannot be achieved without the rule of law. Establishing a robust legal framework, he says, is crucial for protecting property rights and ensuring fair treatment for all citizens. A strong rule of law safeguards the freedoms of the weak and poor, preventing dominance by the rich and powerful.
“The rule of law is the most important part of economic freedom because it protects the freedom of the weak and the poor. Without a rule of law, it’s the rich and the powerful lording over everyone. This is a complicated thing, improving the rule of law, but absolutely essential,” he insisted.
Promote Trade Openness
He continued that enhancing trade policies to facilitate international commerce can drive economic growth. Ghana’s low ranking in trade freedom indicates a need to open markets and encourage exports, allowing the nation to benefit from global trade opportunities.
He said, “Ghana can get rich and prosperous by selling its products to the world. So why you’re cutting off that line of prosperity and growth is a great mystery. All these things, cutting the regulations, will help reduce corruption. If you need somebody’s permission to do something, there’s a government official or somebody else to pay off. If you cut the regulations and you can do it without somebody’s permission, then there’s no one to pay off.”
These recommendations, he believes, of implemented, will lead to immediate improvements in Ghana’s economic landscape. Reducing regulations and promoting transparency can also mitigate corruption, as fewer bureaucratic obstacles decrease opportunities for illicit activities.
Commenting on the Economic Freedom Seminar, the Chief Executive Officer (CEO) of ACEYE, Emmanuel Acquah, says the periodic event is to imbibe in students the philosophy of the free market and economics and its impact on economic growth and prosperity.
It also seeks to challenge them to be innovative, cultivate the principles of transformational leadership, and challenge the tendency to depend on the government for everything.
“We are looking at achieving is to imbibe in young people the whole concept of free markets, philosophy and economics, and also to edge them on not to be overly dependent on governments, because there are lots of opportunities outside the scope of government, particularly by embarking on entrepreneurship,” he told The High Street Journal.
The Africa Centre for Entrepreneurship and Youth Empowerment (ACEYE) is a youth-led think tank focused on promoting economic freedom, entrepreneurship, and youth empowerment across Africa. It advocates for market-driven policies, business-friendly regulations, and entrepreneurial development to drive economic growth.
