Editorial: Harnessing Africa’s demographic dividend

Ghana’s rapidly expanding population is a strain on limited resources and complicates efforts at curbing excessive expenditure, a key demand under the IMF’s Extended Credit Facility (ECF) and World Bank-backed initiatives.

From just 6.7 million in 1960, Ghana’s population has gone past 34 million in 2025 – intensifying demand for schools, hospitals and infrastructure.

According to the Institute of Economic Affairs (IEA) Board Chairman Dr. Charles Mensa, these structural pressures make it nearly impossible for government to trim spending without undermining critical social and economic services.

Consequently, he stressed the need for Ghana to secure stronger ownership and control over its natural resources to enhance revenue flows and reduce reliance on debt financing.

Laudably, government signalled its commitment to expenditure rationalisation in its early days by capping ministerial appointments at 60 and trimming non-essential foreign travel.

Speaking at the 9th Tokyo International Conference on African Development (TICAD IX) private-public business dialogue recently, President John Mahama also warned that Africa’s youth bulge could turn into a ticking time-bomb if governments fail to create jobs that absorb them.

Relying only on manufacturing and agriculture cannot solve Africa’s unemployment challenge, he cautioned. The president observed that Africa’s youth are increasingly drawn to new and dynamic sectors rather than the traditional paths of agriculture and industry.

He highlighted how rapidly youth-led innovation is transforming economies across the continent. President Mahama encouraged Japanese investors to leverage the skills of Ghanaian youth through partnerships, technology transfer and training initiatives, stressing that the workforce is ready to support expansion in digital, industrial and agro-processing sectors.

This message underscores the critical importance of immediate action to harness Africa’s demographic dividend while preventing social instability that could arise from widespread youth unemployment.

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