UGBS Professor of Finance, Godfred Bokpin Says Ghana Needs Long-term Macroeconomic Stability for Transformation

UGBS Professor of Finance, Godfred Bokpin Says Ghana Needs Long-term Macroeconomic Stability for Transformation

Professor of Finance at the University of Ghana Business School, Prof. Godfred Bokpin, has emphasised the need for the country to maintain long-term macroeconomic stability to achieve sustainable economic transformation and inclusive growth. Prof. Bokpin made this statement at the Ghana National Chamber of Commerce and Industry (GNCCI) Dialogue Series held in Accra on 18th March 2025 on the theme: "2025 National Budget Discourse: Implication for the Private Sector". This was published in the Daily Graphic on 20th March 2025. 

Prof. Bokpin warned that short-term economic policies disrupt stability, stressing that sustained low inflation and interest rates are essential for effective planning and growth. "We should focus on maintaining macroeconomic stability for the long term. Low inflation and low interest rates must be sustained over extended periods. Without long-term stability, effective planning becomes impossible," he stated. 

He stated that since 1992, Ghana has achieved relative stability for short periods, typically two to three years before crises disrupted the progress. Prof. Bokpin stressed that macroeconomic stability should not be viewed as an achievement in itself but as a foundation for long-term economic transformation. 

Drawing comparisons with Malaysia, Singapore, and South Korea, Prof. Bokpin pointed out that their economic success was built on consistent policies implemented over at least 15 years. He urged policymakers to adopt a long-term approach to economic management, ensuring stability beyond short election cycles. This, he argued, is crucial for moving Ghana from the preparatory stage to achieving meaningful economic progress. 

Addressing Ghana’s fiscal policy, Prof. Bokpin noted that while the country generates and spends revenue relative to its economy's size, inefficiencies in government spending remain a significant challenge. "Ghana has spent as much as Malaysia, Singapore, and South Korea. However, while these countries have used their expenditures to create employment, quality infrastructure, and economic growth, Ghana’s spending has led to inflation, poverty, and environmental degradation," he remarked. 

He emphasised the need for more efficient government spending, pointing out that in Ghana, infrastructure projects such as road construction often cost multiple times the global average due to inefficiencies and corruption. Prof. Bokpin stressed that the country's economic growth must be intentional, sustainable, and people-centred. "It is not enough to talk about GDP growth. We must measure how many people are being lifted out of poverty, how income inequality is being reduced, and how our growth strategy is preserving the environment,"' he said. 

He highlighted inefficiencies and corruption in public spending, citing road construction projects that often cost multiple times the global average. He called for more efficient and strategic government spending to ensure economic growth that is intentional, sustainable, and people-centered. "It is not enough to talk about GDP growth. We must measure how many people are being lifted out of poverty, how income inequality is being reduced, and how our growth strategy preserves the environment," he added. 

The Chief Executive Officer (CEO) of GNCCI, Mark Badu-Aboagye, encouraged businesses to identify opportunities in the 2025 budget and strategically position themselves to benefit. He cited the government's commitment to procuring locally manufactured goods as a significant opportunity for businesses. Additionally, he pointed to the infrastructural sector, where the government is expected to invest approximately GHC1.5 billion, as another key area for business growth.