Ghana at 68: The elusive dream of economic independence

By Joshua Worlasi AMLANU

Sixty-eight years ago, Ghana made history by becoming the first Sub-Saharan African country to gain independence from colonial rule.

On March 6, 1957, the streets of Accra were filled with celebration as Dr. Kwame Nkrumah declared that Ghana was “free forever.” The moment symbolized not just political liberation but also the beginning of a journey toward economic self-sufficiency.

However, nearly seven decades later, the vision of economic independence remains largely unfulfilled. Ghana’s economy continues to struggle with structural weaknesses, external dependency, and governance challenges.

The nation remains heavily reliant on commodity exports while depending on imports for essential goods, including food. Public debt has reached unsustainable levels, youth unemployment is at crisis proportions, and local industries have struggled to compete against foreign alternatives.

As Ghana marks its 68th Independence Anniversary, the question persists: Has the country truly freed itself from economic servitude, or has it simply replaced colonial rule with new forms of economic dependence?

The early vision of economic freedom

At independence, Ghana was among the most promising economies in Africa. The country was endowed with vast natural resources—gold, cocoa, timber, and fertile agricultural land. With the right policies, it was believed that Ghana could build an industrialised economy capable of sustaining itself without relying on external aid.

Dr. Kwame Nkrumah spearheaded ambitious projects aimed at transforming Ghana into an industrial powerhouse. His government built state-owned enterprises (SOEs), invested in infrastructure, and sought to industrialize the economy through import substitution. The Akosombo Dam, built to provide electricity for industrialization, remains one of Ghana’s most significant post-independence projects.

However, political instability, economic mismanagement, and external pressures disrupted the dream. Military coups in the 1960s and 1970s led to inconsistent policies, and by the time Ghana embraced structural adjustment programmes in the 1980s, much of its economic sovereignty had already been eroded. The country became increasingly dependent on international financial institutions such as the International Monetary Fund (IMF) and the World Bank, which imposed conditions that often prioritized fiscal discipline over long-term economic development.

The harsh reality of economic dependence

Despite its rich resource base, Ghana continues to struggle with economic self-sufficiency. The country’s economy is still centered around the export of raw materials, particularly gold, cocoa, and oil. These commodities are vulnerable to global price fluctuations, leaving the economy exposed to external shocks.

At the same time, Ghana remains a net importer of finished goods, including food, machinery, and industrial products. The imbalance in trade has created a persistent foreign exchange shortfall, leading to periodic currency depreciation and inflationary pressures.

Dr. Ishmael Evans Yamson, Chairman of the National Economic Dialogue 2025 Planning Committee, recently expressed concern over Ghana’s economic state, stating, “Ghana remains under economic domination and servitude, and a poor, highly, and unsustainably indebted country. Unemployment, particularly youth unemployment, has become widespread and a security risk, while Ghana is the only country in Sub-Saharan Africa that depends most on food imports to feed its people.”

Indeed, Ghana’s food import bill exceeds US$2 billion annually, despite having vast arable land and favorable conditions for agriculture. Local farmers struggle to compete with cheaper imported food products, a problem exacerbated by inconsistent agricultural policies and limited access to credit. While initiatives such as the Planting for Food and Jobs program have aimed to boost domestic production, their impact has not been sufficient to make the country food-secure.

The debt burden and fiscal instability

Ghana’s growing dependence on external borrowing has also hindered its economic independence. Over the past two decades, successive governments have relied on loans to finance infrastructure projects, social programs, and budget deficits. While borrowing is not inherently bad, poor financial management and weak revenue generation have led to an unsustainable debt burden.

Currently, Ghana’s public debt-to-GDP ratio remains alarmingly high, with a significant portion of government revenue being used to service debt instead of funding productive sectors. Debt restructuring programs under the IMF have provided temporary relief, but they have also imposed stringent conditions that limit Ghana’s policy flexibility.

The reliance on external creditors has placed Ghana in a cycle where economic policies are often shaped by international financial institutions rather than by national interests. This raises concerns about the country’s ability to make independent economic decisions that align with long-term development goals.

The role of governance and corruption

Beyond economic policies, governance and corruption have played a significant role in hindering Ghana’s economic progress. Despite the country’s democratic stability, inefficiencies in public administration, political patronage, and corruption continue to undermine economic growth.

Dr. Yamson highlighted these governance challenges, stating, “Ghana today is characterized by a political mindset motivated by power to loot state coffers for personal gain, selfishness, arrogance, and impunity by political leaders and public officers.”

One of the most glaring examples of economic inefficiency is the performance of state-owned enterprises (SOEs). Many SOEs operate at a loss, draining public resources and accumulating debt. Instead of serving as drivers of economic growth, they have become liabilities due to mismanagement and corruption.

Additionally, the regulatory environment often favors politically connected businesses, while smaller enterprises struggle with bureaucratic bottlenecks and lack of access to finance. The business climate remains challenging, discouraging entrepreneurship and private sector-led growth.

Youth unemployment and the ‘generation hustlers’

Ghana’s economic challenges have disproportionately affected the youth, leading to a rise in unemployment and underemployment. Every year, thousands of graduates enter the job market with limited opportunities available.

A growing phenomenon is the ‘Generation Hustlers’—young Ghanaians who engage in informal economic activities due to the lack of formal employment. Many aspire to leave Ghana in search of better opportunities abroad, leading to a brain drain that further weakens the country’s development prospects.

Dr. Yamson warned about the consequences of this trend, stating, “We have succeeded in creating a new generation of young people who have lost hope, respect, and confidence in their political leaders and their country.”

If not addressed, youth unemployment could become a major social and security risk, as disillusioned young people may turn to crime or other desperate measures to survive.

The path to economic independence

While Ghana faces significant economic challenges, there are clear steps that can be taken to achieve true economic independence. Experts and policymakers have outlined several key strategies:

1. Industrialization and Value Addition

• Ghana must move beyond exporting raw materials and focus on processing them locally. Expanding industries that add value to cocoa, gold, oil, and other resources will generate higher revenues and create jobs.
• The One District, One Factory (1D1F) initiative has the potential to drive industrialisation but requires better implementation and investment.

2. Agricultural Transformation

• Reducing food imports by strengthening domestic agriculture should be a national priority.
• Improved access to credit for farmers, mechanization, and investment in storage and transportation infrastructure can boost local food production.

3. Debt Management and Fiscal Discipline

• The government must adopt responsible borrowing practices and focus on expanding domestic revenue generation.
• Strengthening tax collection, eliminating wasteful expenditures, and enhancing fiscal transparency will be essential.

4. Governance Reforms and Anti-Corruption Efforts

• Strict enforcement of anti-corruption laws, greater accountability in public institutions, and reforms in SOEs can help build a more transparent economy.
• Streamlining bureaucracy and improving regulatory efficiency will create a more business-friendly environment.

5. Youth Empowerment and Entrepreneurship

• Encouraging entrepreneurship through access to funding, digital economy initiatives, and vocational training can provide alternatives to formal employment.
• Investments in technology and innovation can position Ghana as a competitive player in emerging global industries.

Conclusion

Ghana’s independence was a defining moment in African history, but economic freedom remains an unfinished journey. At 68, the country stands at a crossroads—either it takes bold steps to break free from economic dependency, or it continues on a path of stagnation and external control.

Dr. Yamson put it best: “Only our leaders and the people of Ghana can, and must, resolve these problems. Let us take the responsibility of resetting our destiny in our own hands.”

The road ahead is challenging, but with visionary leadership, sound policies, and a renewed commitment to national development, Ghana can achieve the economic independence its forefathers envisioned.

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