Fred McMahon, a Resident Fellow at the Fraser Institute, has emphasised the critical role of economic freedom in improving the socio-economic lives of Ghanaians.

His remarks were made during the launch of the Index of Government Institutions Performance Towards Economic Prosperity (IGIPTEP) report, published by the Africa Centre for Entrepreneurship and Youth Empowerment (ACEYE).

Dr. McMahon called on Ghana's government to prioritise the country’s performance on the Economic Freedom Index (EFI) as a means to accelerate economic development and ensure prosperity for all citizens.

The EFI is a global ranking framework that evaluates countries' economic freedom based on key policy areas such as the Rule of Law, Government Size, Regulatory Efficiency, and Market Openness.

Published annually by institutions such as The Heritage Foundation and the Fraser Institute, it assesses the level of freedom in the economic and business environment.

Ghana’s economic freedom score in the 2025 Index of Economic Freedom stands at 56.0, ranking 112th globally and 16th among 47 Sub-Saharan African countries.

While this marks a slight 0.2-point improvement from the previous year, the country remains classified as “mostly unfree.”

Ghana’s score lags behind the global average, though it remains above the regional average. Areas requiring urgent attention include government integrity, fiscal health, property rights, judicial effectiveness, labour freedom, and trade freedom.

To improve Ghana’s ranking, Dr. McMahon proposed several measures:

Streamlining business regulations
Reducing bureaucratic red tape to facilitate business establishment and growth. Simplifying tax processes and removing regulatory hurdles would empower entrepreneurs and create jobs.

Reforming labour laws
Dr. McMahon noted that easing labour regulations could lower hiring costs and encourage workforce expansion. He highlighted Ghana’s low ranking in labour freedom (112th globally) as an indication of restrictive laws that hinder employment opportunities.

Strengthening the rule of law
He stressed the importance of establishing a robust legal framework to protect property rights and ensure fairness for all citizens. "The rule of law is the cornerstone of economic freedom. It protects the weak and poor from being dominated by the rich and powerful," he said.

Promoting trade openness
Dr. McMahon urged Ghana to enhance its trade policies to encourage international commerce and drive economic growth.

Ghana’s low score in trade freedom, he argued, underscores the need to open markets and facilitate exports. "Ghana can achieve prosperity by selling its products to the world.

Cutting trade restrictions will also reduce corruption, as fewer bureaucratic obstacles mean fewer opportunities for illicit activities," he explained.

While addressing the media, Dr. Richmond Kwesi Ansah, Co-Founder of the Africa Centre for Entrepreneurship and Youth Empowerment, stated that implementing the recommendations from IGIPTEP would significantly improve the livelihoods of Ghanaians and enhance the country’s standing on the Global Economic Freedom Index.

"The essence of IGIPTEP is to provide actionable audits of government institutions so that their delivery will promote the economic freedom of households and individuals. When economic freedom thrives in households, it will drive national economic freedom and prosperity.

This means that Ghana will become freer and rise in the global economic freedom index ranking."

The author, Ebenezer De-Gaulle, is a freelance journalist