In a candid address during a joint press conference with IMF officials in Accra, renowned Ghanaian economist Prof. Godfred Bokpin voiced serious concerns over the country’s long-term economic trajectory.
According to Prof. Bokpin, Ghana’s inability to maintain macroeconomic stability for extended periods is a significant issue that continues to haunt the nation’s economic future.
“Our biggest problem as a country is that we are unable to achieve and maintain macroeconomic stability for long,” Prof. Bokpin said. He acknowledged that Ghana could experience periods of good stability, perhaps up to the end of 2026.
However, he raised a critical question that’s often overlooked in economic discussions: “What happens thereafter?”
This uncertainty, Prof. Bokpin explained, creates significant risks for business owners and investors who are looking to make long-term decisions in Ghana’s economy.
“What it means is that given the uncertainty of the programme and the position government has adopted, I respect that position to some extent. They’ve got their reasons and all of that. But my view is that this introduces considerable risk to a lot of people who do business in this country,” he emphasized.
One of the major risks identified by the economist is the concern among investors who are considering long-term investments.
“Those who would want to take long-term positions in our economy, invest for long, they will be concerned.
“What happens after 2026?” Prof. Bokpin queried, highlighting a crucial point that many investors may hesitate to commit to Ghana’s economy when they cannot foresee the country’s fiscal future beyond a few years.
Drawing attention to the historical pattern of fiscal indiscipline, Prof. Bokpin pointed out a recurring issue.
“We know that fiscal indiscipline tends to escalate when we exit IMF programmes,” he noted. This, in his view, could create even more uncertainty and challenges for the economy when the current IMF programme comes to an end.
