Ghana’s economic challenges took center stage at the recently concluded National Economic Dialogue (NED), where policymakers, industry leaders, and civil society groups called for urgent and bold reforms to stabilize the nation’s fragile economy. The two-day event, held at the behest of President John Mahama emphasized the need for decisive action to address fiscal instability, enhance governance, and foster sustainable growth.

In a communique released after the dialogue, participants acknowledged that Ghana’s economy is in crisis, facing multiple risks and vulnerabilities. Structural weaknesses, financial strain in State-Owned Enterprises (SOEs), and challenges in key sectors such as energy and cocoa have exacerbated the country’s macroeconomic instability.

“The Ghanaian economy remains fragile, with significant risks stemming from SOEs, particularly in the energy and cocoa sectors, which undermine fiscal and debt sustainability,” the communique stated.

After two days of plenary discussions, NED participants outlined several areas requiring immediate intervention:

1. Macroeconomic Stability: Urged the government to enhance fiscal and monetary policy coordination, review the foreign exchange retention regime, implement major tax reforms, and ensure transparent financial reporting for SOEs.
2. Public Sector and Private Sector Reforms: Called for comprehensive reforms to improve public sector productivity and incentivize private sector investments.
3. Infrastructure Development: Proposed the introduction of new investment models through the Ghana Stock Exchange and the Ghana Infrastructure Investment Fund to address infrastructure deficits.
4. Energy and Cocoa Sector Revamp: Recommended a review of Electricity Company of Ghana (ECG) operations to attract private sector participation, strengthen billing and collection systems, and renegotiate Independent Power Producer (IPP) contracts. Additionally, stakeholders emphasized the urgent need to combat illegal mining (galamsey) and restructure COCOBOD to enhance efficiency.
5. Good Governance and Anti-Corruption Measures: Advocated for constitutional reforms, improved parliamentary oversight on public spending, and stricter regulations on political party financing.

The dialogue ended with a resounding call for swift implementation of the proposed reforms. Participants stressed that inaction could further weaken investor confidence and prolong economic distress.

Here is a copy of the communique: