Ghana’s long-term economic future will depend on how much it invests in education, skills, and job creation, the World Bank has said in a new report urging urgent reforms.
The Policy Notes, titled Transforming Ghana in a Generation, argue that Ghana could sustain annual growth of more than 6.5 percent and triple per capita income by 2050 if it strengthens human capital, restores fiscal discipline, and reforms key sectors.
Ghana’s income per capita has stalled around $2,200 for more than a decade, while poverty affects over one-quarter of the population. The World Bank said the country’s reliance on natural resources, weak structural transformation, and recurring fiscal crises have slowed progress and widened inequality.
“Ghana has a unique opportunity to restore fiscal discipline, improve governance, and leverage natural and human capital resources for broad-based and inclusive development to transform the country within a generation,” said Robert Taliercio, World Bank Division Director for Ghana, Liberia and Sierra Leone.
“To sustain high growth, it must join other countries that have maintained prolonged periods of robust economic growth and successfully avoided the middle-income trap by maintaining macroeconomic stability, low inflation rates, and sustainable public finances.”
The report sets out four priorities for Ghana’s transformation: restoring macroeconomic stability, boosting productivity and jobs, managing natural resources sustainably, and reinforcing governance. Recommended measures include improving revenue collection, cutting fiscal risks in sectors like energy and cocoa, strengthening education and health systems, and ensuring agriculture and infrastructure are more resilient.
“The choices Ghana makes now, can unlock a generation of inclusive, resilient growth, and deliver on the promise of sufficient quality jobs for its citizens. The World Bank Group stands ready to support Ghana’s leadership and the efforts of all stakeholders to make that promise real,” said Stefano Curto, the Bank’s Lead Economist for Ghana.
The warning comes as Ghana continues to recover from its 2022 economic crisis, when soaring debt, rising inflation, and a balance of payments crunch forced the government to seek another IMF programme. The World Bank cautioned against returning too quickly to international capital markets and called for reforms to restore credibility and place debt on a sustainable path.
By investing in its people and institutions while diversifying the economy, the Bank said, Ghana can seize the opportunity to secure lasting growth and avoid falling into the so-called middle-income trap that has stalled progress in other countries.
