Ghana’s economic rebound will depend less on short-term financing and more on structural reform, value addition, and disciplined borrowing, according to former Finance Minister and current Economic Advisor to the President, Seth Emmanuel Terkper.
In assessing the post-IMF growth outlook at the Ghanaian German Economic Association webinar, the Advisor framed the recovery challenge around structural vulnerabilities that continue to shape macroeconomic outcomes. The economy, he noted, remains exposed to climate and commodity shocks, stressing that “we should prepare for drought,” particularly given the country’s reliance on rain-fed agriculture and imported inputs during dry seasons.
He observed that “the economy is still narrow-based on commodities,” warning that downturns in cocoa and other exports can quickly erode gains in other sectors. To manage these cycles more effectively, he advocated “counter-cyclical policies” that build buffers during strong periods and provide support during downturns.
The conversation on recovery, he suggested, must also shift toward productivity and industrial depth. “We need to add value,” he said, emphasising that middle-income economies cannot depend indefinitely on raw commodity exports. Expanding domestic processing, strengthening manufacturing linkages, and deepening service sector capabilities are, in his view, essential to building resilience.
Within that broader framework, Seth Terkper described the proposed 24-hour economy as “a package of mostly investment opportunities,” spanning transport, agriculture, logistics, and infrastructure. Rather than a standalone policy slogan, he positioned it as a coordination tool to mobilise capital and align sectoral priorities with long-term growth objectives.
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However, financing that expansion presents constraints. Following the debt restructuring, he noted that “borrowing limits would not have permitted us to borrow long-term,” effectively narrowing the government’s fiscal space. As a result, “we have been dependent… on using T-bills,” a strategy he indicated is inherently short-term.
He was clear that “we do not use T-bills to build infrastructure,” underscoring the mismatch between short-duration instruments and long-term capital projects. Sustainable infrastructure financing, he argued, requires restoring the capacity for medium- and long-term bond issuance.
While arguing that market conditions are gradually improving, Seth Terkper indicated that “we are not in a hurry to go to the commercial bond market.” The priority, he suggested, is to consolidate stability first, rebuilding buffers, improving debt sustainability metrics, and strengthening investor confidence.
For this reason, he maintained that “we need the instruments, not the T-bills,” pointing to the importance of deepening the domestic bond market as a foundation for private capital mobilisation. Reducing risk premiums and rebuilding credibility, he added, will allow the government to finance development at lower cost.
He cautioned that failure to act decisively after default would have carried deeper consequences, remarking that “if you didn’t take that seriously, you sink further.” Stabilisation measures, though restrictive in the short term, were necessary to prevent prolonged market exclusion.
Encouragingly, he noted that “we are reducing the rate at which we borrow and increasing our ratings,” signalling gradual progress toward re-entry into longer-term financing channels.
Taken together, Seth’s remarks outline a recovery strategy anchored not in rapid borrowing expansion but in disciplined fiscal management, structural diversification, and value creation. The implication for policymakers and investors alike is that Ghana’s rebound will be shaped by how effectively it strengthens its financing architecture while broadening the productive base of the economy.
