Editorial: Topsy-turvy development has been the country’s lot for two decades

A report by the Africa Centre for Economic Transformation (ACET), called the Ghana Country Economic Outlook Transformation 2024, says to achieve sustained economic transformation the country must address policy incoherence, strengthen sectoral linkages, diversify exports through value addition and mainstream gender-equity in economic strategies.

The country’s economic performance over the last two decades has mirrored global trends, peaking in the early 2000s and elevating Ghana to middle-income status. But disruption from collapse of the commodity super-cycle in 2014–2015 and COVID-19 pandemic led to the country’s first recession in 38 years during 2020.

Thus, recovery has since been constrained by a challenging macroeconomic environment, rising debt and the effects of illegal mining.

Additionally, raw materials dominate exports (51.0%) followed by intermediate goods (43%), with minimal value addition and weak progress in technology-intensive manufacturing.

However, according ACET, human well-being has seen steady improvement with significant reductions in poverty over two decades. However, inequality persists – compounded by high youth unemployment and a largely informal labour market.

Enhancing labour productivity and fostering a competitive industrial sector are critical to building a resilient economy. The report notes that in the early 2000s Gross Domestic Product (GDP) growth was robust, peaking at 14% in 2011; nearly doubling GDP per capita and elevating Ghana to middle-income status.

Despite episodes of growth, economic transformation has not met expectations. Industrial competitiveness, particularly in manufacturing, remains weak due to an unfavourable business environment and limited integration with other sectors.

Structural changes in the economy have also not significantly boosted productivity, despite transitioning resources and labour from agriculture to other productivity sectors – but these were of low quality and informal, the report further notes.

The African Centre for Economic Transformation (ACET) argues that despite the existence of clear roadmaps for leveraging the country’s natural resources to drive economic transformation, duty-bearers have made little effort to realise them.

The just-ended National Economic Dialogue was convened purposefully to elicit views from Ghanaians about the country’s economic trajectory and find lasting pathways to sustainable economic growth. It is hoped that the two-day national exercise has set the tone for tackling the immense economic challenges confronting the country.

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