By Jerry.J.AFOLABI (PhD)
This paper outlines an actionable framework for the Government of Ghana to address pressing economic challenges during its first 100 days in office.
The focus is on stabilizing the economy, regaining public trust, and laying the foundation for long-term sustainable growth.
Announce a comprehensive economic recovery plan
The President should communicate a clear, credible roadmap to restore economic stability and growth by establishing and publishing the economic recovery plan (ERP) team.
The team in my opinion should include the minister of finance and the governor of the central bank as lead entities to coordinate the drafting and publishing of the ERP, ensuring input from other key ministries such as Trade, Agriculture, and Energy.
The team should identify short, medium, and long-term goals, including fiscal consolidation, inflation control, and economic diversification by outlining measurable targets for debt-to-GDP ratio, currency depreciation, inflation, employment, and growth and debt servicing to revenue ratio.
The team should focus on implementing a zero-based budgeting system to ensure every expenditure of government is justified and this must be done by an independent value for money team. For a smooth process of implementation, all financial transactions must be digitized and centralized to eliminate corruption and leakages. In essence, there must be an intentional process to cut non-essential government spending including allowances and procurement inefficiencies.
On the other hand, when it comes to borrowing, the team must prioritize concessional loans with a focus on low interest loans and grants instead of expensive commercial borrowing with high transactional fees.
Tax reforms
Another important area the economic recovery plan team should focus on is revenue mobilization & tax reforms. Ghanaians in the informal sector form do not have any medium to pay taxes to the government since there are no proper structures in place to collect the tax.
The economic recovery team should implement a structure to formalize the sector and make it easy for collect the tax. This can also be done by offering some tax incentives for registration. Government should improve tax compliance by collaborating with GRA and all the representatives of the various informal sector groups and provide digital tax systems.
Focusing on combating illicit financial flows by enforcing tax laws on multinational corporations evading taxes through transfer pricing and strengthen Ghana Revenue Authority’s (GRA) oversight on high-net-worth individuals.
Currency stabilization & inflation control
The economic recovery team should prioritize reducing import dependence by boosting local production of essential goods and encouraging foreign direct investment (FDI) in productive sectors.
The gold-for-oil policy must be enhanced to ease forex pressure. Reduce excessive money supply growth through responsible monetary policy by the Bank of Ghana. The economic recovery plan (ERP) team should be a combination of fiscal discipline, economic diversification, industrialization, digital transformation, and social protection. By implementing these measures, Ghana can stabilize its economy, reduce debt distress, increase job creation, and achieve long-term growth.
Reduce inflationary pressures to stabilize household purchasing power. By engaging key stakeholders to cap prices on essential goods such as food staples, fuel, and medicines. Most importantly partner with key suppliers to ensure compliance and prevent hoarding.
Strengthen monetary policy coordination by working with the central bank to maintain a tight monetary policy stance and increase transparency on exchange rate management to reduce speculation.
Nationwide communication strategy
The government should host town hall meetings, press briefings, and stakeholder engagements to foster buy-in on leveraging traditional and digital media platforms, such as local radio, television, and social media (e.g., Facebook, Twitter, and WhatsApp groups), to explain the ERP and its benefits to citizens. Indeed, ensure materials are translated into local languages to reach rural communities and diverse demographic groups effectively.
Work with Parliament to fast-track legislative support for key ERP components, including fiscal discipline measures such as tax reforms aimed at broadening the tax base and improving revenue collection. Enacting anti-corruption laws to strengthen penalties for financial misconduct and improve public procurement processes.
Introduce legal frameworks for public-private partnerships (PPPs) and CSOs to encourage private sector investment in infrastructure and essential services by work with Parliament to fast-track legislative support for key ERP components, including fiscal discipline and anti-corruption measures.
Publish transparent audits of public spending
The government should rebuild trust by showcasing accountability and prudent use of public resources by conducting rapid audits of all major government contracts and expenditures over the last two fiscal years with focus on high-expenditure sectors such as health, education, and infrastructure.
Release findings to the Public by publishing summaries of audit findings online and in print, highlighting irregularities and corrective actions.
Enforce accountability by referring all cases of corruption or mismanagement to appropriate investigative bodies, especially the attorney general and minister for justice for prosecution. Ensure sanctions are imposed on officials found guilty of financial misconduct.
There should be a deliberate effort to reduce government expenditure by at least 5% and this can be achieved by implementation of e-governance systems in key ministries.
Monitoring and Evaluation (M&E) is key to the success of any policy implementation so for that matter, it is important to establish an independent M&E unit to track progress against set deliverables and publish monthly updates on achievements and challenges. Partner with civil society organizations (CSOs), private sector players, and development partners to enhance implementation. Create feedback mechanisms for citizens to report issues and suggestions.
Conclusion
The opinion expressed in this article is intended to shape the government’s action plan for the first 100 days and to address Ghana’s immediate economic challenges while laying a foundation for long-term recovery. By demonstrating decisive leadership, transparency, and inclusivity, the government can rebuild trust and set the country on a path toward sustainable growth and stability.
Jerry is a Financial & Economic .Email;[email protected]/+1405-250-1732
