Why law is Africa’s invisible economic re-emergence pivot

Economist Dr Theo Acheampong highlighted that Ghana's economic recovery is driven by comprehensive reforms extending beyond the profits from gold. The Technical Advisor at the Finance Ministry shared this perspective on Joy News’ PM Express Business Edition, stating that stronger tax collection, spending controls, and timely payments to statutory funds were instrumental in rebuilding the nation's economic foundations.

When asked by reporters about investors' inquiries on how Ghana rapidly recovered from the 2022–2024 crisis, Dr Acheampong emphasized that it was not solely due to the gold story, but because of the rigorous reforms undertaken. He clarified that while a typical country recovering from such a crisis would need around five years to reset its economic fundamentals, Ghana managed this feat in approximately a year and a half.

He highlighted tax reforms, improved spending controls, and directed expenditure as significant contributors to this progress. Dr Acheampong pointed out that the tax-to-GDP ratio had increased from approximately 11.5 percent to nearly 13 percent. He also emphasized tighter controls over spending commitments and investments directed towards the right sectors.

The government's clearance of inherited arrears to statutory funds, including the District Assemblies Common Fund and the National Health Insurance Fund, further underscored the recovery efforts. For Dr Acheampong, the consistent transfers to these funds represented a tangible proof of the ongoing reforms. He pointed out that for the first time in recent memory, the country had been maintaining current payments to these funds, a stark contrast to previous years when such payments were often delayed until months later.

By detailing these positive changes, Dr Acheampong aimed to provide investors with a broader perspective on Ghana's recovery, beyond the government’s narrative. He also noted that these improvements were evident in the country’s enhanced capacity to service its debt.