Ghana's Economic Resurgence: A Deep Dive into Growth, Strategy, and Future Prospects
Ghana is currently experiencing a period of notable economic recovery, prompting discussions about the sustainability of this growth and the country's strategic direction. Recent economic data and policy initiatives provide a clearer picture of the nation's progress and future aspirations.
Impressive Economic Indicators
Key economic indicators for Ghana demonstrate a strong economic performance. In the first quarter of 2025, provisional real GDP grew by 5.3% year-on-year, a significant increase from the 4.9% recorded in the same quarter of 2024. This growth was primarily driven by the non-oil sector, which expanded by 6.8%. The sectors contributing most significantly included agriculture, services (especially information and communication, finance, and insurance), and manufacturing.
By the second quarter of 2025, the economy continued its expansion, with a provisional real GDP growth rate of 6.3% year-on-year, exceeding the 5.7% recorded in the second quarter of 2024. The services sector remained the primary driver of growth, fueled by robust gains in finance, trade, education, and ICT.
Fiscal Prudence and Debt Management
A significant achievement has been the decline in the public debt-to-GDP ratio. According to the Finance Ministry, this ratio decreased from 61.8% at the end of December 2024 to 43.8% by the end of June 2025. This reduction is attributed to effective fiscal consolidation policies and the appreciation of the Cedi, Ghana's currency.
Gross international reserves have also been building up faster than initially projected. By the end of June 2025, reserves reached $11.1 billion, covering approximately 4.0 months of imports and exceeding targets set under the International Monetary Fund (IMF) program.
Cautious Approach to Capital Markets
While the improving economic conditions might suggest an imminent return to the international capital market, the government is adopting a cautious approach. There is a strong emphasis on consolidating economic gains before considering further external borrowing. The ability of Ghana to operate without relying on Eurobonds in recent years underscores this strategy, reflecting a broader aim to rebalance external financing away from debt and toward more stable foreign direct investment.
The "Resetting Ghana Agenda" and the 24-Hour Economy
The government is committed to its "Resetting Ghana Agenda," with a strong focus on the "24-hour economy" and export-led growth. The 24-hour economy is a deliberate policy designed to encourage businesses and public institutions to operate around the clock, boosting production, productivity, and job creation. This initiative aims to transform Ghana into an import-substitution and export-led economy.
Monetary Policy Adjustments
The Bank of Ghana has been actively adjusting its monetary policy rate in response to a sustained disinflationary trend. In March 2025, the Monetary Policy Committee (MPC) raised the policy rate to 28.0%. However, in July 2025, the MPC reduced the policy rate by 300 basis points to 25.0%, citing a decline in inflation and stronger economic activity. Further reductions may be considered if the disinflation trend continues.
Attracting Foreign Investment
Efforts are underway to attract foreign investment, particularly in key sectors such as agribusiness, logistics, manufacturing, and energy. Ghana is being positioned as a "reliable gateway" to the African Continental Free Trade Area (AfCFTA).
Addressing Road Infrastructure Deficits
Ghana's road infrastructure is a key focus of the government’s economic agenda, with significant projects, payments, and new contracts being implemented. This activity is largely being driven by the "Big Push Infrastructure Programme."
Key ongoing projects include:
- Accra-Kumasi Highway Bypass: Construction of bypasses at Osino, Anyinam, Enyiresi, and Konongo are in progress.
- Nsawam-Ofankor Dualization: Widening the road to 10 lanes with a 6-lane expressway and 4-lane service road.
- Tema Motorway Roundabout: Construction of a third tier of the interchange.
- Western North Region Roads: Extensive road construction and rehabilitation projects.
The government has also announced plans to complete 32 road projects, including:
- Construction of a new bridge on the Oti River at Dambai
- Upgrading of Tumu–Hamile Road
- Upgrading of Tumu – Han – Lawra Road
- Reconstruction of Navrongo – Tumu Road
- Rehabilitation of Techiman – Nkonsia – Wenchi Road
- Rehabilitation of Wenchi – Sawla Road
- Construction of Sunyani Outer Ring Road
- Construction of Kumasi Outer Ring Road (Eastern Quadrant)
- Rehabilitation of Gibitri – Nakpanduri Road
- Rehabilitation of Dodo Pepesu – Nkwanta Road
- Rehabilitation of Atimpoku – Asikuma Junction Road
- Rehabilitation of Asikuma Junction – Anyirawasi Road
- Reconstruction of Anyirawasi – Ho Titrinu Road
- Upgrading of Akosombo–Gyakiti–Kudikope Road
- Upgrading of Asikuma to Anum Boso–Kpalime Road
- Upgrading of Adomi Bridge to Akwamufie Road
- Rehabilitation of Ho – Kpetoe Road
- Rehabilitation of Kpetoe – Afiadenyigba Road
- Rehabilitation of Afiadenyigba – Penyi Road
- Rehabilitation of Penyi – Aflao Road
- Dualisation of Winneba – Mankessim Road
- Dualisation of Cape Coast – Takoradi Road
- Rehabilitation of Mankessim – Ajumako – Breman Asikuma – Agona Swedru Road
- Rehabilitation of Tema – Aflao Road (Section 1)
- Reconstruction of Dodowa – Afienya – Dawhenya Road
- Upgrading of Ojubji – Appolonia – Afienya Road
- Construction of Enchi – Elubo Road
- Construction of Dadieso – Akomtomra Road
- Upgrading of Adwofua – Oseiokjokrom Road
- Upgrading of Enchi – Kudjouru – Pekyi Road
- Upgrading of Bediako Junction – Camp 15 – Sefwi Adabokrom Road
Addressing Contractor Debt
A major challenge in the road sector has been significant debt owed to contractors, leading to stalled projects. Concrete steps are being taken to address this, including debt audits to clear a total debt of approximately GH¢21 billion owed to contractors. A critical audit of all payment certificates is being conducted to ensure that only genuine claims are honored and to prevent double payments. The government has committed to settling payments within two weeks of submission for contractors who submit valid payment certificates under the "Big Push" program. An initial disbursement of GH¢4 billion has been allocated to settle part of the outstanding debt.
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