Ghana’s Finance Ministry has sounded the alarm over the country’s looming demographic transition, warning that without fiscal reforms, public finances, job creation, and social stability could come under severe strain.
Chief Director of the Ministry, Patrick Nomo, said United Nations projections show Ghana’s population will rise to 45 million by 2040, with nearly 10 million young people expected to enter the labour force over the next 15 years.
“We must do things differently. We must become more effective and efficient in public financial management if we are to meet our national aspirations and respond to the legitimate needs of our young people,” Mr. Nomo told participants at a high-level roundtable on Ghana’s new independent Fiscal Council.
The warning comes as policymakers grapple with the dual challenge of stabilizing an economy still recovering from years of debt distress, while preparing for an unprecedented youth bulge that could either drive growth or deepen unemployment if left unmanaged.
Mr. Nomo stressed that fiscal mismanagement in the past had undermined macroeconomic stability and eroded business and household confidence. The new Fiscal Council, to be established under the Public Financial Management (Amendment) Act, 2025, is expected to provide an institutional safeguard against a repeat of such crises.
The Council will be empowered to monitor and enforce fiscal discipline, ensuring compliance with new fiscal rules, including a public debt ceiling of 45% of GDP by 2034 and a fiscal surplus target of at least 1.5% of GDP.
“Establishing a credible Fiscal Council is about building resilience. It is not just about numbers. It is about ensuring that our children and future generations inherit a sustainable economy, not a broken one,” Nomo added.
He revealed that the Ministry is already preparing the 2026 Budget, noting that stakeholder engagement will be critical in shaping reforms that address immediate fiscal challenges while also anticipating the demands of the country’s youthful population.
The roundtable, organised by IMANI Ghana and the International Institute for Sustainable Development (IISD), brought together policymakers, economists, civil society leaders, and business executives to debate the design of the Fiscal Council.
Participants underscored that without credible, independent oversight, Ghana risks falling back into cycles of debt and instability that have long hindered development.
For investors, the creation of a strong Fiscal Council is being positioned as a signal of Ghana’s commitment to long-term stability and transparency, key to attracting capital and sustaining growth in the face of shifting demographics.
