World Bank urges Ghana to break boom–bust cycle with bold reforms

The World Bank has called on Ghana to seize what it described as a “pivotal moment” in its development journey, warning that failure to adopt bold reforms could leave the country trapped in cycles of crisis and stagnation.

At the launch of the 2025 Policy Notes: Transforming Ghana in a Generation on Wednesday in Accra on Wednesday, the Bank painted a sobering picture of Ghana’s economic trajectory, noting that remarkable gains in the early 2000s were followed by a “lost decade”, culminating in the 2022 economic crisis.

“Income per capita has stagnated around US$2,200, while socioeconomic disparities have widened and job creation has lagged behind population growth,” the report highlighted.

With over 500,000 young Ghanaians entering the labour market annually, the World Bank warned that without reforms, growth could plateau at 3.8 per cent and upper-middle-income status may be delayed beyond 2050.

“The real risk is complacency and business as usual,” the policy notes cautioned. Ghana, it observed, has spent nearly 40 of the last 68 years under IMF programmes, an indication of persistent fiscal indiscipline and structural weaknesses.

The Bank’s prescription centres on four pillars: restoring macro-financial stability, boosting productivity and job creation, managing natural resources and climate risks, and strengthening governance and public institutions.

For instance, reforms in the cocoa and energy sectors are considered urgent.

“Unbundling COCOBOD to cut costs and boost profits, and involving the private sector in ECG to improve revenue management, will be critical to regaining financial sustainability,” the report recommended.

According to the World Bank, ambitious reforms could more than triple Ghana’s per capita income by 2050, with sustained GDP growth reaching 6.5 per cent.

But success, it stressed, would depend on rebuilding citizen trust.

“Ultimately, what will matter most is the government’s ability to regain the trust of its citizens,” the report said.