Ghana may need about 15 years of sustained reforms, strategic investments and policy consistency to translate its current macroeconomic stability into meaningful economic transformation, Professor Godfred Alufar Bokpin, an economist, has said.
The Professor of Finance at the University of Ghana Business School (UGBS) said the restoration of macroeconomic stability was only an initial step, stressing that the real test of economic management would be the country’s ability to convert those gains into productive jobs, business expansion and improved living standards.
He explained that countries that had successfully transformed their economies achieved the feat through deliberate and consistent reforms over extended periods, rather than short-term interventions tied to one or two 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 in an interview during the National Policy Dialogue on Philanthropy and Social Investment in Accra.
Prof. Bokpin acknowledged the government’s progress in restoring macroeconomic stability but cautioned that relying heavily on expenditure cuts could constrain private sector activity and weaken the foundations for long-term growth.
He cited a reduction in government expenditure on goods and services by more than 47% before 2025, saying the adjustment had helped reduce fiscal deficits but also affected small businesses that depended on government contracts.
Budget analysis showed that expenditure on goods and services declined from GH¢11.06 billion in 2024 to GH¢6.97 billion in 2025, representing a 37% reduction, before rising to a projected GH¢13.2 billion in 2026.
He said the next phase of economic management should move beyond expenditure compression towards productive investments capable of expanding domestic business activity, strengthening industrial capacity and generating employment.
Prof. Bokpin identified agriculture, agribusiness, agro-processing and rural-urban road infrastructure as critical areas requiring increased government investment to improve productivity and create opportunities for private sector participation.
He also urged the government to integrate artificial intelligence (AI) and digital technologies into economic management to improve productivity, enhance revenue mobilisation and reduce operational inefficiencies.
He said investments in roads, schools and other critical infrastructure would provide the foundation for businesses to expand, improve access to markets and support economic activities across the country.
Prof. Bokpin expressed optimism that technology could shorten Ghana’s transformation timeline if deliberately incorporated into national development planning.
“We can shorten it with improved technology and AI,” he said.
He cited China’s development experience, particularly its use of technology and infrastructure investment to support productivity improvements and bottom-up economic growth.
He called for a national strategy from 2027 that would align fiscal policy with technology adoption and AI-driven efficiency, arguing that such an approach could accelerate economic transformation.
Meanwhile, the government has announced plans to invest US$10 billion over the next four years in seven strategic sectors under its New Economy policy, with job creation identified as a central objective.
The proposed investment is expected to support the government’s broader efforts to reposition the economy towards productive activities and expand employment opportunities.
