Ghana’s recent economic gains risk being overstated if not backed by resilience, Professor Godfred Bokpin, an economist has warned, stressing that stability alone cannot shield the country from external shocks.
Speaking at Prudential Bank’s Cedi Appreciation Seminar in Accra, Prof. Bokpin acknowledged that Ghana has achieved significant progress in taming inflation, strengthening the cedi, and restoring fiscal discipline.
He attributed these achievements to the collaborative efforts of the Ministry of Finance and the Bank of Ghana (BoG), whose coordination has been central to the country’s macroeconomic turnaround.
“Stability is only a means, not an end. What is missing is resilience, that is the economy’s ability to withstand shocks,” he cautioned.
Prior to 2020, Ghana’s economy was perceived to be stable and doing well but the economy was severely hit by the COVID-19 pandemic, followed by the Russia-Ukraine war, which disrupted supply chains, drove up energy costs, and forced Ghana to seek support from the IMF and World Bank.
“This shows that stability without resilience is fragile. We have moved between stability and crisis since 1992,” he said, adding that Ghana’s economy has historically performed well in certain periods but collapsed when shocks occurred.
While welcoming the disinflation trend, with inflation dropping from over 50% in early 2023 to 12.1% in mid-2025, with single-digit inflation projected in early 2026, Prof. Bokpin argued that the benefits of stability are yet to be fully felt by businesses.
He warned that high lending rates remained a major threat to private sector growth, despite recent improvements in the cedi and monetary policy adjustments.
“The kind of interest rate we have can only fund imports, not production or manufacturing,” he said. “If our rates are not aligned, we are denying private capital the opportunity to expand and employ.”
Prof. Bokpin noted that in countries like Kenya, businesses borrow at around 10%, underscoring how Ghana’s credit environment is limiting its competitiveness.
He described the gap between the policy rate and market lending rates as a sign of inefficiency in the financial system.
The economist urged policymakers to ensure that fiscal prudence, disinflation, and currency stability are translated into affordable financing for businesses, arguing that credit access at 8% with longer maturities would unlock job creation and economic transformation.
“If businesses can expand through affordable credit, then stability will have meaning. Without resilience, however, stability is just temporary comfort,” he added.
