The World Bank has warned that poorly performing State-Owned Enterprises (SOEs), particularly in the energy and agriculture sectors, pose significant
The World Bank has warned that poorly performing State-Owned Enterprises (SOEs), particularly in the energy and agriculture sectors, pose significant fiscal risks to Ghana’s economic stability.
The Bretton Woods institution is calling for urgent reforms and strengthened oversight to ensure long-term stability and fiscal susustainability.
Fiscal Challenges
Ghana’s tax-to-GDP ratio has averaged 12.5% from 2020 to 2024, which is below regional peers.
This is attributed to VAT exemptions, evasion, and underutilized extractive industry revenues.
The fiscal consolidation program faced setbacks in 2024 due to election-related spending and arrears.
However, the situation improved markedly in early 2025 through strong expenditure restraint and new fiscal rules.
Public Debt Sustainability
The World Bank assesses Ghana’s public debt as sustainable in the medium term, contingent on completing external debt restructuring and maintaining strong fiscal discipline.
The comprehensive debt restructuring is nearing completion, with a Memorandum of Understanding signed with the Official Creditors Committee in January 2025 and Eurobond exchange finalized in October 2024.
Key Recommendations
– Urgent reforms and strengthened oversight of SOEs to ensure long-term stability and fiscal sustainability
– Continued fiscal discipline and expenditure restraint to maintain economic stability
– Completion of external debt restructuring to ensure debt sustainability.
COMMENTS