World Bank urges Ghana to sustain fiscal consolidation and implement reforms for economic transformation

The World Bank Group has called on the Ghanaian government to maintain momentum on decisive and sustainable fiscal consolidation, emphasizing the importance of expenditure management and revenue mobilisation to restore macro-financial stability and support long-term economic transformation.

In its 2025 Policy Notes report, titled “Transforming Ghana in a Generation”, the World Bank stressed that Ghana must build policy credibility by committing to macroeconomic stabilization, reestablishing fiscal rules, and strengthening public debt management. The 144-page report recommends enhancing the fiscal framework and related institutions to ensure sustained fiscal discipline.

Among its specific recommendations, the report advises avoiding large foreign exchange interventions by the Bank of Ghana, revising the fiscal regime for mining, creating a revenue-sharing mechanism for mining-affected regions, and postponing re-entry into the Eurobond market.

At the report launch, Mr Robert Taliercio, Division Director for Ghana, Sierra Leone, and Liberia, highlighted Ghana’s economic challenges over the past decade, noting that macroeconomic crises—including a severe crisis in 2022—undermined poverty reduction and job creation efforts. He observed that Ghana’s history of repeated fiscal expansion followed by sharp adjustments reflected recurring fiscal stress and political economy constraints that hinder sustained reforms.

The report notes that with ambitious reforms, Ghana could more than triple per capita income by 2050, moving decisively toward upper-middle-income status. It also calls for financial sustainability in sectors with high fiscal risks, contingent liabilities, and quasi-fiscal spending. Specific sectoral recommendations include comprehensive reform of COCOBOD to streamline functions and expenditures, reduce costs, and enhance profitability, as well as overhauling the Electricity Company of Ghana through private sector participation to improve revenue collection, reduce losses, and strengthen billing and revenue management.

The 2025 Policy Notes framework is anchored on four key foundations: restoring and sustaining macro-financial stability, raising productivity and competitiveness to create jobs, sustainable natural resource management and resilience, and strong governance and public institutions fit for purpose.

The World Bank’s recommendations aim to equip Ghana with the policy and institutional tools needed to secure sustainable growth and long-term economic transformation.