Ghana’s economy, buoyed by gold, oil, and cocoa exports, continues to post steady growth, but critics argue the benefits are bypassing most citizens.
While national GDP figures project progress, millions of Ghanaians face stagnant wages, scarce job opportunities, and a cost-of-living crisis, sparking urgent questions about the sustainability and fairness of the country’s economic trajectory.
Mark Badu Aboagye, CEO of the Ghana National Chamber of Commerce and Industry (GNCCI), minced no words in a recent interview with News Ghana. “Our growth is neither inclusive nor sustainable,” he said. “Billions flow from extractive industries, but they employ barely a fraction of our workforce. The majority see no real change.”
Data from the Ghana Statistical Service (GSS) underscores the paradox. Between 2000 and 2021, Ghana’s employment rate plummeted from 73.9% to 55.7%, even as the economy expanded. Mining, a top revenue generator, contributes just 1.3% of jobs nationwide. Meanwhile, over 80% of workers rely on informal sectors like small-scale farming and trading—spaces marked by erratic incomes and zero safety nets.
The root of the problem, analysts say, lies in Ghana’s overreliance on raw material exports. Gold, oil, and cocoa dominate trade portfolios, but their extraction and sale abroad generate limited local employment. Price swings in global commodities—like cocoa’s 40% price drop in 2023—leave the economy exposed. “Exporting raw materials keeps us vulnerable,” Aboagye noted. “Without adding value, we’re stuck in a cycle of dependency.”
Businesses, too, face headwinds. Inflation hit a 22-year high of 54% in 2023, while interest rates soared above 30%, pushing firms to cut jobs or relocate to stable neighbors like Ivory Coast. “Macroeconomic chaos is a silent killer,” Aboagye said. “How can industries thrive with unstable currencies or unaffordable loans?”
Competitiveness remains another hurdle. Ghanaian products struggle globally due to high production costs, driven by expensive electricity, taxes, and credit. While the country ships unprocessed cocoa and gold, nations like Switzerland and South Africa profit by refining them. “International buyers care about price and quality, not our flag,” Aboagye stressed. “Until we slash costs and industrialize, we’ll keep losing.”
The upcoming National Economic Dialogue has sparked cautious hope. Stakeholders urge policies to stabilize the economy, boost agriculture and manufacturing, and incentivize value-added exports. Aboagye outlined priorities: “Fix fiscal discipline, cut energy tariffs, and invest in technology. Without these, growth will never trickle down.”
Yet skepticism lingers. Past dialogues have yielded more promises than action. For Ghana’s youth—40% of whom are underemployed—the stakes are existential. “Talks won’t feed families,” said Accra-based Editor Roger A Agana. “We need factories, not just forums.”
As global demand for green minerals rises, Ghana stands at a crossroads. Will it leverage its resources to build a diversified, job-rich economy? Or will the gold-and-oil mirage leave its people further behind? The answer, experts say, hinges on political will—and a rejection of business as usual.
