Former Deputy Finance Minister Dr Stephen Amoah has outlined the key reforms and strategies Ghana must adopt to maintain the recent decline in inflation and secure long-term economic stability.

His remarks follow the latest data showing Ghana’s year-on-year inflation rate fell to 3.3 per cent in February 2026, marking the 14th consecutive monthly decline and the lowest level since the 2021 CPI rebasing.

Speaking on JoyNews’ The Pulse on Wednesday, 4 March, Dr Amoah emphasised that sustaining these gains requires careful planning, structural reforms, and robust support for the private sector.

He stressed that government spending must prioritise sectors that directly contribute to GDP growth and social welfare, warning against arbitrary expenditure cuts that have little impact on economic development.

“We need to invest in areas that deliver real economic and social outcomes. Cutting expenditure without understanding the impact could undermine our progress,” he said.

Dr Amoah also highlighted the need to address primary economic anomalies, particularly the high cost of domestic borrowing. He noted that heavy government borrowing from local markets at high rates crowds out private sector lending and slows economic activity.

“I recently checked key rates at the banks and realised the private sector is still paying higher interest than the policy reference rate. This technical gap, if unchecked, could push inflation up again,” he explained.

The lawmaker called for urgent support for Ghana’s SMEs, which form the backbone of the economy. Many small businesses lack access to capital, mechanisation, and tools, leaving them vulnerable to external shocks and import dependency. Strengthening SMEs, he said, is critical for building economic resilience and sustaining macroeconomic gains.

Dr Amoah also identified weak research funding as a structural gap.

“One area where all governments fall short is research. We have global institutions, yet we fund them poorly — around 0.25% of revenue, and even that target is rarely met. Investing in research is essential to make our economy resilient and self-sustaining,” he stressed.

Finally, Dr Amoah urged comprehensive reforms in fiscal management, tax administration, and institutional spending discipline.

“If we align our spending priorities, empower SMEs, strengthen domestic production, and invest in research, we can lock in the gains achieved in reducing inflation. Otherwise, we risk slipping back, especially given our heavy reliance on imports,” he noted.