Economy

Ghana is the second-biggest producer of gold on the African continent, and the world’s second-largest cocoa producer. The country is also home to one of the largest discoveries of oil in recent decades, the production of which is providing the government with a useful revenue stream and driving growth in associated sectors. Nevertheless, the country faces considerable economic challenges with the biggest one arising from its 2019 departure from the IMF’s support framework. Developing the economy while staying within the government’s defined limits for fiscal deficits and external debt remain key challenges. The government’s revised tax policies, however, are likely to strengthen revenue streams and reduce the need to cut expenditures to remain within the targeted fiscal deficit limit. Despite the broadly positive outlook, Ghana’s continued dependence on cocoa, gold and oil exports leaves it vulnerable to volatility in international commodity prices. The government’s longer-term plan to develop other areas of the economy, therefore, is crucial to eliminating this downside risk. This chapter contains interviews with Ken Ofori-Atta, Minister for Finance; Yofi Grant, CEO, Ghana Investment Promotion Centre; Seth Twum Akwaboah, CEO, Association of Ghana Industries; and Reeta Roy, CEO and President, Mastercard Foundation.