Ghana has made notable economic strides over the past year, but experts warn that achieving long-term growth requires more than short-term improvements. Speaking on Joy Newsfile on February 28, Fred Dzanku, Development Economist and Associate Professor at ISSER, University of Ghana, noted that while the State of the Nation Address (SoNA) highlighted important achievements, the deeper structural issues in the economy remain critical.
Dzanku highlighted the heavy fiscal burden Ghana faces, revealing that “Ghana has spent an average of about 36% of government revenue on interest payments over the period…compared to the Sub-Saharan African average, which is 8%.” He noted that such high debt servicing limits the government’s capacity to fund new infrastructure projects, constraining overall investment. “Our capacity to create growth has fallen from about 27% of GDP in 2015 to just about 10% recently,” he added, pointing to a decade-long decline in public investment.
The economist warned that while recent macroeconomic indicators, including renewed investor confidence, controlled inflation, and exchange rate stability, are positive, these achievements alone do not guarantee lasting growth. “Stabilization is not instantaneous…we cannot rely on one year of improvements to claim lasting success. What matters is the credibility and consistency of policy over the medium term,” Dzanku said.
He emphasized the importance of sustained, long-term structural reforms. Dzanku highlighted that Ghana’s GDP per capita growth has been volatile over the years, averaging only 2.3% over the past decade, far below the 4–6% needed to achieve true structural transformation. Without addressing these foundational issues, heavy debt servicing, declining public investment, and inconsistent growth, short-term improvements risk being temporary.
Dzanku noted that while progress over recent years is commendable, continued fiscal discipline, strategic investment, and policy consistency are essential. Only through such reforms can Ghana convert the gains of stabilization into enduring, inclusive economic growth that benefits all citizens.
