Ghana’s projected 5.7% economic growth in 2026 is achievable, but sustaining the expansion will depend on the country’s ability to shift towards private sector-led growth.
This is the assessment of Professor of Finance at Andrews University in the United States, Professor Williams Kwasi Peprah.
He argues that while rising commodity prices and increased economic activity, including road construction, are supporting growth, Ghana must strengthen manufacturing, agriculture and agro-processing to protect the economy from external price shocks and sustain expansion over the long term.
Speaking in an interview monitored by The High Street Journal, Prof. Peprah said the projected growth would become more sustainable if the private sector played a greater role in driving economic activity, particularly through value addition to locally produced raw materials.
“It’s achievable. However, if you ask me, I would want to see it being driven by more private sector-led than commodities. We all know the impact of price volatility on the commodity market,” the Professor Finance maintained.
Beyond Commodity-Driven Growth
Prof. Peprah acknowledged that Ghana’s current economic conditions and increased productive activity could support the projected expansion. He explained that economic growth depends on both price movements and output, with productivity-enhancing activities contributing to increased production and overall economic performance.
He cited road construction activities as an example of productive investment with multiple economic effects, including the potential to stimulate activity across other sectors. These developments, he said, provide grounds for optimism about the International Monetary Fund’s 5.7% growth projection for Ghana in 2026.
However, he cautioned that relying heavily on favourable commodity prices could make the expansion vulnerable to volatility in international markets.
“We all know the impact of price volatility on the commodity market. So, at the moment, we are benefiting,” he said.
His concern is that growth supported largely by favourable commodity prices may prove temporary if the country fails to build stronger domestic productive capacity.
Value Addition is the Way
Prof. Peprah believes Ghana must increasingly process its agricultural products locally instead of depending primarily on the export of raw commodities. He identified cocoa and other agricultural products as opportunities for expanding domestic manufacturing, creating additional economic value and strengthening the contribution of agro-businesses to national output.
Greater investment in processing and manufacturing could help businesses create more value from existing production, while supporting broader economic activity across supply chains.
The challenge for Ghana, he believes, is therefore not simply to achieve the projected 5.7% growth rate, but to establish the productive foundations needed to sustain it.
He said, “If we can add value to cocoa, the other products we produce from agriculture, then this 5.7% will become more realistic. If not, it’s going to be a one-time event, and then we will come back to reduction in GDP growth.”
Prof. Peprah warned that without a stronger private sector contribution and greater value addition, the current expansion could be short-lived, leaving the economy vulnerable to another slowdown.
