Ghana has achieved five-year economic reset in 18 months – Theo Acheampong

Economist and political risk specialist Dr Theo Acheampong says Ghana has achieved an economic reset in just 18 months, a turnaround that typically takes at least five years after a crisis. Speaking to George Wiafe on Joy News’ PM Express Business Edition, Dr Acheampong said the pace of recovery has caught investors’ attention. He attributes the swift recovery to reforms in taxation, spending controls, and payments to statutory funds.

Dr Acheampong noted that investors are witnessing changes in the economy’s fundamentals and Ghana’s enhanced ability to service its debt. He dismissed attributing the gains solely to commodity earnings, emphasizing that the turnaround stems from hard reforms. The tax-to-GDP ratio has risen from 11.5 per cent to nearly 13 per cent, according to Dr Acheampong, though he did not provide a precise latest figure.

He highlighted tighter controls over spending commitments and efforts to allocate expenditure to the right areas. Dr Acheampong also pointed out that inherited arrears have been cleared, with transfers to the District Assemblies Common Fund and the National Health Insurance Fund made current for the first time. These payments, he explained, form part of the evidence supporting Ghana’s message to investors, indicating that the turnaround extends beyond favorable commodity earnings to changes in government revenue collection, spending, and fund releases.