As the 2025 Spring Meetings of the World Bank and International Monetary Fund (IMF) convene in Washington, D.C., Ghana once again steps into the spotlight of global economic scrutiny.
A high-level government delegation, led by the Minister for Finance, Dr. Cassiel Ato Forson, is participating in these meetings amid a mix of cautious optimism and lingering domestic uncertainty.
Ghana’s recent re-entry into an IMF-supported programme—its 18th since independence—raises critical questions about the country’s long-term fiscal resilience and the recurring structural weaknesses that continue to pull it back.
With global debt distress and geopolitical shocks redefining economic recovery for many emerging markets, Ghana must chart a decisive path toward independence from external bailouts.
This article proposes a sector-by-sector roadmap that could reposition Ghana’s economy for sustainable growth, while ensuring it never needs to return to the IMF in crisis mode again.
Ghana’s Historical Engagement with the IMF
Ghana’s relationship with the International Monetary Fund (IMF) dates back to September 20, 1957, marking the beginning of a long and complex economic partnership. Over the decades, successive governments have turned to the Fund—often during balance-of-payment crises or periods of fiscal instability.
Among these interventions, the 1983 Structural Adjustment Programme stands out as the most transformative. It liberalized the economy and set Ghana on a path of recovery following near-total economic collapse.
Ghana has since returned to the IMF multiple times—in 2009, 2015, and most recently in 2022—each time prompted by a mix of external shocks, unsustainable debt, rising inflation, and currency depreciation.
These repeated engagements point to deep-rooted structural weaknesses, including a narrow export base, inefficient public revenue systems, and an overextended fiscal framework that continues to limit economic resilience.
Toward Economic Resilience: A Sector-by-Sector Strategy
If Ghana is to break the cycle of recurring IMF interventions, it must undertake bold, structural reforms and strategic investments across its most critical sectors. The path to economic independence requires a deliberate, coordinated approach that addresses both the root causes of fiscal vulnerability and the untapped potential within the economy.
Here is a sector-by-sector roadmap to building lasting resilience and ensuring Ghana never returns to the IMF in crisis mode.
1. Agriculture as Ghana’s Exit Strategy from the IMF
Ghana’s long entanglement with the International Monetary Fund (IMF) is a symptom of a deeper structural issue—our inability to unlock the full potential of agriculture. While we’ve talked endlessly about economic independence, the harsh truth is that our agricultural sector, the backbone of our economy, remains underpowered, underfunded, and largely untouched by innovation.
Despite agriculture’s potential to be the game-changer in Ghana’s quest for economic sovereignty, it continues to limp under outdated practices. The sector still relies heavily on rain-fed systems, cutlasses, hoes, and guesswork.
And while other nations—China, Japan, Israel—have made food production a matter of national pride and strategic policy, we in Ghana continue to approach it as a matter of charity and tradition.
It’s a stark contrast. China, for instance, moved from food shortages in the 1980s to becoming a global agricultural powerhouse by investing in technology, irrigation, and research. Japan, with very limited arable land, turned to scientific innovation to maximize yield. If Ghana is serious about weaning itself off IMF bailouts, this is the playbook we need—not one built on austerity and loans, but on bold agricultural reform.
Nothing highlights the sector’s neglect more than our irrigation statistics. According to Ing. Richard Oppong-Boateng, Acting CEO of the Ghana Irrigation Development Authority (GIDA), in an interview on Citi FM in 2024, Ghana has developed only 220,000 hectares of irrigable land — just 12% of the country’s potential 1.9 million hectares. That’s not just inadequate; it’s economically dangerous.
The cost of irrigating a single hectare stood at about $40,000 as of 2024. If the government truly believes in an agricultural-led transformation, then massive capital investments in irrigation infrastructure must become a national priority.
A few private firms like Golden Exotic Company Limited have shown what’s possible with drone technology and data-driven farming. But these are exceptions. Most Ghanaian farmers are still battling unpredictable weather, soil degradation, and low yields, with little to no institutional support.
Why hasn’t the government created incentives or subsidies to scale such innovations across the sector? Why aren’t we training our youth to deploy agri-tech, drones, and AI on farms instead of leaving them unemployed or migrating?
As cocoa faces declining yields due to climate change and land degradation from illegal mining, it is high time we rethink our export priorities. Shea butter and cashew, both resilient and climate-tolerant, placed seventh and tenth, respectively, in Ghana’s 2024 top export earners, contributing 0.9% and 0.7% of total export revenue.
Yet, these crops receive only a fraction of the attention cocoa commands. What if we invested in shea and cashew with the same seriousness we did cocoa? The potential for job creation, foreign exchange, and rural empowerment is enormous.
Institutions like CSIR-Crops Research Institute (CSIR-CRI) and the CSIR-Food Research Institute (CSIR-FRI) have developed game-changing innovations—climate-resilient crop varieties, food preservation techniques, and pest-resistant seeds. Unfortunately, much of their research remains buried in files, not fields.
Examples include drought-tolerant maize varieties and improved yam and cowpea strains developed by CSIR-CRI—technologies that could double yields under harsh conditions. But these breakthroughs have been ignored due to poor funding, lack of commercialization, and weak policy alignment. We cannot afford to let science sit idle when it could feed our nation and boost our economy.
Finally, no talk of agricultural revival is complete without addressing logistics. Poor rural roads delay the transport of food, inflate prices, and cause needless post-harvest losses. Farmers watch their crops rot because they can’t reach urban markets in time. Until we fix these roads, we will keep blaming inflation on global forces while ignoring our domestic inefficiencies.
If Ghana truly wants to say goodbye to the IMF, agriculture must be the foundation of that farewell. That means:
A. Massive investment in irrigation and mechanization.
B. Support for agri-tech and youth-led innovation.
C. Scaling up non-traditional exports like cashew and shea.
D. Funding and applying agricultural research.
E. Fixing rural infrastructure to link farm gates to market shelves.
2. Leveraging Trade and Regional Integration
At the heart of Ghana’s ambition to break free from the cycle of IMF bailouts and external dependence lies a game-changing opportunity—the African Continental Free Trade Area (AfCFTA). With 55 countries, a population of 1.3 billion, and a combined GDP of US$3.4 trillion, the AfCFTA represents the world’s largest free trade zone—and Ghana, as host of the Secretariat in Accra, sits at a strategic crossroads.
But the mere presence of the Secretariat is not enough. Ghana must now match opportunity with bold action.
This is the time to revive and modernize local industries: pharmaceuticals to reduce dependency on imported medicines, agro-processing to turn our raw harvests into export-ready goods, textiles to clothe a continent hungry for African brands.
These industries are not only vital for foreign exchange but also for job creation and the building of a self-sustaining economy.
However, political instability in the region threatens this vision. The withdrawal of Mali, Niger, and Burkina Faso from ECOWAS and their imposition of levies on goods from member states have created uncertainty. If not addressed quickly, this could ripple across the continent, hurting the very core of AfCFTA’s goals.
Ghana must champion diplomatic efforts, and President John Mahama’s initiative to reintegrate these countries into ECOWAS—an essential step to preserving regional trade cohesion is a move in the right direction.
Beyond geopolitics, Ghana’s internal systems must be overhauled to support seamless trade. Inefficiencies at ports and borders remain a chronic issue. According to the African Development Bank (2022), Ghana loses up to 10% of its potential trade revenue due to delays in cargo clearance and port operations. If we continue down this path, we risk losing our competitive advantage to faster, more efficient ports in Lomé and Abidjan.
The Ghana Ports and Harbours Authority (GPHA) has called for the elimination of VAT on transit goods to attract more regional traffic. It’s a move worth serious consideration. Countries like Dubai and Singapore have built global trade hubs not by luck, but by combining efficient logistics, forward-thinking policy, and bold infrastructure investments.
If Ghana is serious about weaning itself from IMF dependency, trade must be treated as a national emergency and a national opportunity. AfCFTA is the continent’s future, and Ghana must lead not only in hosting the Secretariat but in becoming the continent’s most efficient, competitive, and trusted trade partner.
3. Industrialization: The Bedrock of Economic Independence
From history to modern-day economics, one thing is clear: industrialization is the linchpin of national development. It creates jobs, generates revenue, and attracts technology transfer. Without it, economies remain consumers of foreign goods rather than producers of local wealth.
For Ghana to wean itself off IMF bailouts, industrialization and manufacturing must become non-negotiable priorities—not buzzwords for election manifestos but engines of real transformation.
Every attempt at industrial growth in Ghana runs into a predictable hurdle: energy. Years of intermittent power supply—popularly termed “dumsor” – have eroded investor confidence, increased production costs, and stifled innovation.
The problem isn’t just the inconsistency of supply but the cost. Effective May 1, 2025, electricity tariffs will rise by over 14%, while water costs will go up by over 4%, according to the Public Utilities Regulatory Commission (PURC).
These hikes, while justified by inflation and debt pressures, threaten to break the backs of already struggling businesses. Manufacturers warn that these increases could eventually push them out of business, reversing years of industrial progress.
To fix this, the government must urgently tackle the root causes: financial mismanagement, unsustainable debt, and over-reliance on thermal sources. At the same time, renewable energy options like solar, wind, and biomass must move from pilot projects to a national strategy.
One of the current administration’s policy ideas to stimulate industrialization is the 24-Hour Economy. It promises round-the-clock productivity and the rise of a modern manufacturing base. But for this vision to work, it must solve three key challenges: reliable energy, secure infrastructure, and efficient logistics.
If done right, this policy could be a game-changer. Manufacturing and industrial firms could run multiple shifts, boosting output and creating more jobs without being held back by time or power constraints.
As of 2021, most businesses in Ghana fell under the SME (Small and Medium Enterprises) category. These businesses form the lifeblood of the economy. Yet, many are stifled by lack of access to affordable financing, high taxes, and complex regulatory environments.
To help them thrive, the government must introduce targeted tax incentives, simplify compliance requirements, and offer specialized support for high-potential sectors. SMEs should not be left to compete in the same terrain as multinational giants with vastly superior resources.
Industrialization cannot thrive without demand. And demand begins with a shift in national mindset. If the government is serious about economic transformation, it must enforce local content procurement policies across its ministries, departments, and agencies. From uniforms and electronics to construction materials and food supplies, the public sector must become a champion of “Made in Ghana.”
We cannot continue to flood our markets with imports and expect local industries to survive. A Ghana that makes must also be a Ghana that buys.
Ghana is blessed with a wealth of natural resources, yet we export them raw and buy them back as expensive finished goods. This has to end. We must develop resource-based industrial hubs:
•Salt into chemicals and pharmaceuticals
•Bauxite into aluminum and industrial components
•Iron ore into steel and machinery
These are not pipe dreams—they are economic imperatives. Countries like Malaysia and South Korea have built entire industries this way.
Ghana cannot industrialize on wishful thinking. We must tackle power challenges, empower SMEs, reward local production, and pursue value addition at all costs. Only then can we begin to write the obituary of IMF dependence.
4. Ghana’s Wealth Beneath: Refining Our Resources, Redefining Our Future
If Ghana truly seeks to sever its decades-long dependence on the International Monetary Fund (IMF), the nation must stop digging and exporting wealth.
For far too long, we have settled for the crumbs of our vast natural endowment—exporting raw commodities and importing the finished goods at premium prices. This outdated model is not just unsustainable—it’s self-defeating.
Gold. Bauxite. Manganese. Oil. Ghana is rich beyond measure in resources, yet poor in returns. The problem? We are stuck at the bottom of the value chain.
We export gold but import refined bullion. We mine bauxite but ship it raw instead of producing aluminum. We discover oil but refine next to none of it locally.
This era must come to an end.
Dubai, for instance, has no gold mines, yet it has built a billion-dollar gold refinery economy simply by being a value-add hub. Ghana, by contrast, sits on gold yet loses out on most of its benefits due to a lack of refining capacity. It’s time to flip the script.
Ghana once dreamed big with ventures like VALCO—the Volta Aluminum Company—created to turn bauxite into finished aluminum. But chronic neglect, inconsistent policy support, and lack of modernization turned a promising dream into a cautionary tale.
Still, VALCO’s collapse should not be a tombstone—it should be a turning point. We must revive such industrial giants with new vision, public-private partnerships, and focused leadership. We can’t afford to repeat the same mistakes, but neither can we afford to give up.
Mineral wealth should not be treated as an ATM for current expenditure. Instead, revenue from extractives must be strategically allocated to future savings, fiscal stabilization, and national development.
Countries like Norway have mastered this by creating Sovereign Wealth Funds—stashing resource windfalls for future generations. Ghana must follow suit and ring-fence part of its resource income for economic transformation, not political convenience.
A thriving extractive sector also requires strong institutions. Regulatory bodies like the Minerals Commission, Environmental Protection Agency, and Petroleum Commission must be empowered to act without fear or political interference.
Laws on local content and participation must be enforced, not just passed. Ghanaians must not only be seen in boardrooms but on shop floors, refineries, and logistics chains of the extractive value chain.
The bottom line is this: we cannot mine our way out of poverty by exporting our wealth raw. To wean ourselves off the IMF, Ghana must transform its extractive sector from a hole in the ground to a pillar of economic self-reliance.
By refining our gold, processing our bauxite, and adding value across all levels of the extractive chain, we can create jobs, retain revenue, and build an industrial base strong enough to carry the weight of a truly independent economy.
5. Rethinking Education: The Missing Link in Ghana’s IMF Exit Strategy
If Ghana is truly determined to break free from the cycle of IMF bailouts and foreign dependence, then education must be treated as a cornerstone of that liberation. We cannot talk about economic independence without talking about the skills, mindset, and capacity of our people.
To compete on the global stage, Ghana must build a curriculum that equips students with critical thinking, digital literacy, and entrepreneurial skills—from the basic level right through to tertiary. Today’s world rewards innovation, problem-solving, and adaptability—qualities our current education system doesn’t adequately nurture.
Technical and Vocational Education and Training (TVET) offers the most direct path to industrial growth, job creation, and self-reliance. While recent reforms have slightly increased enrollment, more investment, infrastructure, and awareness are needed to position TVET as a prestigious and practical choice for the youth.
According to the Commission for Technical and Vocational Education and Training (TVET) Ghana Report (2021), enrollment in pre-tertiary TVET experienced a significant surge, more than doubling its enrollment figures.
In 2015, approximately 25,000 students were enrolled, whereas by 2020, this number had risen to around 100,000 students. The majority of these students were enrolled in institutions under the Ghana Education Service (GES) and the National Vocational Training Institute (NVTI). Both training providers have increased their share of total student enrollment over the past five years. Specifically, GES saw a 400% increase in enrollment, while NVTI experienced a 300% rise from 2015 to 2020.
TVET provides hands-on, practical training that bridges the skills gap between school and the job market. Beyond employability, TVET empowers graduates to start their own businesses, driving grassroots entrepreneurship and reducing unemployment.
We cannot talk about manufacturing, value addition, and innovation without a pool of skilled artisans, engineers, and technicians. Education is not just about theory—it’s about powering productivity.
Institutions like the University of Mines and Technology (UMaT) are leading the way by embedding internships into their training, giving students real-world exposure and preparing them to meet industry demands. This model must be scaled across all disciplines.
If we want to build an economy that’s self-reliant, export-driven, and resilient, education must be redesigned to reflect our national goals. It must train thinkers, doers, and creators—not just job seekers. From classroom reforms to practical training, Ghana’s path to IMF freedom starts in the minds and hands of its people.
6. Ghana’s Energy Sector: A Key Player in Weaning the Country from IMF Dependency
Ghana’s energy sector has long been a source of concern, and successive governments have struggled to find a lasting solution to the mounting challenges that threaten the country’s energy security and economic stability.
From crippling debts and financial mismanagement to inefficiencies in key institutions like the Electricity Company of Ghana (ECG), the energy sector has become a stumbling block on the path to economic independence. Yet, with the right investments and reforms, Ghana’s energy sector holds the potential to play a crucial role in reducing the country’s reliance on the International Monetary Fund (IMF) and setting the nation on a more sustainable, self-reliant growth trajectory.
At the heart of Ghana’s energy crisis is the Electricity Company of Ghana, which, unfortunately, has been the main problem within the sector. According to President John Dramani Mahama’s first State of the Nation Address on February 27, 2025, during his second term, the ECG owes a staggering GHS 68 billion. This financial burden is only a part of a broader issue of inefficient management among others.
In recent years, there has been some attempt to diversify the energy mix with a slight increase in renewable energy. However, the country’s energy infrastructure remains dependent on fossil fuels, particularly crude oil, which makes Ghana vulnerable to price fluctuations on the global market and impacts national finances.
The government must take the bull by the horns and address the inefficiencies within the sector once and for all.
Ghana’s current energy sources, primarily hydropower and crude oil, are insufficient to meet the country’s future energy needs. With a growing population and an increasing demand for energy to fuel industrial growth, it is evident that the nation cannot continue to rely on these traditional sources indefinitely.
The energy sector’s challenges are compounded by the rising costs of crude oil procurement. The government must recognize the urgency of investing in renewable energy sources that promise long-term sustainability and cost reduction. By shifting focus towards solar, wind, and geothermal energy, Ghana can break free from its dependency on oil and position itself as a leader in clean, green energy solutions.
According to the Energy Commission, as quoted in a policy brief analyzing trends in Ghana’s energy sector from 2018 to 2021, Ghana’s total primary energy supply increased from 10,800 ktoe to 12,371 ktoe. In 2021, crude oil accounted for 35% of the energy mix, followed by biomass (34%), natural gas (26%), and hydropower (5%). While crude oil has contributed significantly to electricity generation and industrial activities, there is a growing shift towards natural gas and renewable energy sources. The share of biomass, for example, has decreased from 39% in 2018 to 34% in 2021, reflecting a positive change.
For far too long, discussions around Ghana’s energy future have centered on increasing energy generation from renewable sources like solar and wind. However, the potential gains of such investments cannot be overstated. If Ghana successfully increases its renewable energy capacity and these sources overtake others in the energy mix, the country stands to benefit from long-term sustainability, significant cost reductions, and greater energy security. The cost of procuring crude oil to fuel power plants has been a major drain on Ghana’s economy. By transitioning to renewable energy, Ghana can significantly reduce energy production costs and reliance on imported fuel.
Additionally, investing in renewable energy will have far-reaching benefits beyond reducing energy costs. The renewable energy sector itself could create jobs, foster technological innovation, and reduce greenhouse gas emissions. The shift to greener energy aligns with global trends toward sustainability and climate action, which would also enhance Ghana’s standing in international development circles.
7. Fiscal Discipline and Public Financial Management: Ghana’s Route to Economic Independence
For Ghana to break free from its cyclical dependence on the International Monetary Fund (IMF), there must be a bold reset of its fiscal policy and a renewed commitment to effective public financial management. Decades of economic mismanagement, characterized by ballooning debt, unsanctioned expenditure, and weak revenue mobilization, have left the nation in a recurring pattern of fiscal distress and bailout programs.
As of December 2024, Ghana’s public debt had surged to GHS 726.7 billion—an alarming 19.1% increase from the previous year. Much of this debt is rooted in unsanctioned public sector spending, a bloated wage bill, and poor enforcement of existing fiscal laws. While government revenue remains low, expenditure continues to climb—especially with the IMF projecting wage and social contributions alone to reach GHS 71.1 billion in 2025.
A significant portion of Ghana’s fiscal imbalance stems from inefficiencies in payroll management. The persistence of ghost names on the public sector payroll continues to drain state resources. One clear path forward is the digitization of public sector operations. Streamlining payroll systems through digital solutions will not only reduce wage fraud but will also allow for better forecasting and control of compensation expenses.
On the revenue front, Ghana’s tax system is strained. While the Ghana Revenue Authority (GRA) has consistently met its targets, it has done so by focusing disproportionately on a small pool of large corporations, leaving out the vast informal sector. The informal economy remains largely outside the tax net, creating an uneven burden and stifling progress toward sustainable revenue mobilization.
To fix this, the GRA must pursue a deliberate strategy to integrate the informal sector into the formal economy. This can be achieved through a mix of incentives, education, and digitization. Simplified tax processes and mobile-based platforms can empower small businesses and self-employed individuals to comply voluntarily, rather than avoid taxation altogether.
Moreover, the nation’s VAT system—currently hovering around 21%—has been acknowledged by the Finance Minister Ato Forson as “distorted and inefficient.” The government has turned to the IMF for technical assistance in rationalizing the VAT regime. If implemented effectively, this could broaden the tax base and ensure a fairer and more efficient distribution of tax obligations.
Another major drain on Ghana’s fiscal health is its unchecked public spending. According to the 2025 Budget Statement, government arrears amounted to GHS 67.5 billion by end-2024, with the road sector alone accounting for GHS 21 billion. Even more worrying, ministries and departments have committed the state to contracts totaling over GHS 194 billion—most of them without legal authorization, commencement certificates, or budgetary provision. This blatant violation of the Public Financial Management Act, 2016 (Act 921), reflects a deeper problem of institutional impunity.
Ghana does not lack laws; it lacks the will to enforce them. A strong commitment to the PFM Act and parliamentary oversight is essential. As Finance Minister Ato Forson stated in his 2025 Budget Statement, the government intends to “enforce the sanctions regime, link contracting and public procurement to budgetary provisions, and seek parliamentary approval for all multi-year commitments.” If these reforms are faithfully implemented, Ghana would be taking decisive steps toward fiscal sovereignty.
The way forward is clear:
A. Reduce waste
B. Enforce fiscal laws
C. Broaden the tax net
D. Digitize governance systems.
If Ghana can walk this talk, the country may finally steer its economic ship to a stable harbor—this time without the IMF in the captain’s seat.
Conclusion: The Path to True Economic Freedom
Ghana stands at a defining crossroads—not just at the 2025 IMF Spring Meetings, but in its broader journey toward economic sovereignty. With 18 IMF bailouts behind us, the time for cosmetic fixes and short-term thinking is over.
The roadmap laid out—from transforming agriculture and revitalizing trade to industrializing boldly, refining our resources, and reengineering education—is not merely a policy wish list. It is a national survival strategy.
Avoiding a 19th IMF bailout is not about rejecting assistance but about rejecting dependency. It requires political courage, visionary leadership, and an unrelenting commitment to structural reform. If Ghana can mobilize its vast human and natural capital with strategic intent and disciplined execution, then it can do more than exit the IMF cycle—it can emerge as a resilient, self-reliant force on the African continent and beyond.
This is the moment to choose boldness over bailouts. The future is not written in Washington—it must be built in Accra, Kumasi, Tamale, and every corner of this country. Ghana’s economic freedom is within reach—if we dare to reach for it.
By: Vivian Kai Lokko
Head of News – Citi FM & Channel One TV
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