An economist Professor Godfred Bokpin has cautioned that the economy of Ghana has deteriorated further since the country joined the International Monetary Fund (IMF) programme. He warned that President Nana Akufo-Addo’s plan to exit the programme in 2026 could destabilise the economy if done prematurely.

• Professor Godfred Bokpin warns that Ghana’s economy has worsened since joining the IMF program
• He cautions that exiting the program in 2026 could destabilize the economy if done prematurely
• Bokpin recommends properly taxing high-net-worth individuals and advises against overburdening compliant taxpayers with additional levies

Speaking on Joy FM on Monday, 17 February 2025, the Finance and Economics Professor at the University of Ghana stressed that Ghana’s economic struggles are more severe than when the country initially sought IMF support.

“We are an economy that is struggling. We are in a worse situation than we were when we went to the IMF,” he stated, urging the government to consider extending the programme if necessary.

He further warned that an early exit could send negative signals to investors, who prioritise long-term economic stability.

“When people are investing, they want stability for the long term, not just one or two years. Otherwise, those considering long-term commitments may hesitate,” he noted.

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Prof. Bokpin highlighted Ghana’s restricted access to international capital markets until 2027, complicating the country’s economic recovery. He cited warnings from the World Bank, which has advised Ghana against rushing back to the market, pointing out that countries that undergo debt restructuring typically need three to four years to regain investor confidence.

Ghana’s Tax System: A Major Economic Challenge

Another critical concern raised by the economist is Ghana’s inefficient tax system. He revealed that only 41% of the economy contributes 86% of tax revenue, leaving a substantial portion of economic activities untaxed.

“A large chunk of our economy is not taxable. The bigger percentage of our economy contributes just about 40% of tax revenue,” he explained.

While acknowledging government efforts to enhance tax education and administration, he recommended properly taxing high-net-worth individuals, which he estimated could generate up to $160 million annually.

He also cautioned against overburdening compliant taxpayers with additional levies, warning, “If we are not careful, we will kill the chicken that lays the egg.”

Prof. Bokpin’s concerns come as Ghana continues implementing fiscal measures under its $3 billion IMF programme, initiated in 2023. While the government remains optimistic about meeting its fiscal targets through improved tax collection and expenditure controls, the economist insists that a more strategic approach—possibly extending the IMF programme—would be in Ghana’s best interest.

“The idea of reviewing the programme with the possibility of an extension should not be off the table,” he concluded.