Audio By Carbonatix
Professor of Finance and Economics at the University of Ghana, Godfred Bokpin, has warned that Ghana’s economic recovery cannot be sustained unless the government tackles major structural challenges, especially environmental destruction caused by illegal mining.
Speaking on Joy FM’s Super Morning Show on Thursday, May 21, Prof. Bokpin said the government must adopt a more comprehensive approach to economic management rather than focusing only on fiscal targets.
“If the government wants to do well, they cannot pick and choose where they want to succeed. They must address this comprehensively, because we are just kicking the can down the road,” he said.
Prof Bokpin made the remarks while discussing the long-term sustainability of Ghana’s economy and the country’s continued dependence on International Monetary Fund (IMF) programmes.
During the discussion, the host asked whether Ghana would remain economically stable if the government stayed disciplined and avoided excessive spending ahead of the 2028 general elections.
In response, Prof. Bokpin said Ghana remains vulnerable despite recent economic gains and warned that the country could eventually return to another IMF programme if deeper reforms are not implemented.
“Our projection is that by 2032, 2033, Ghana will be fully ready for another IMF programme,” he stated.
He explained that his recommendation, together with others made in 2019 after Ghana exited an earlier IMF programme, was for the country to sign onto a Policy Support Instrument, now known as the Policy Coordination Instrument (PCI).
According to him, the current government’s decision to adopt the PCI in 2026 reflects proposals economists had long advocated.
“What the government has decided to do in 2026 was a recommendation we made in 2019,” he said.
Prof Bokpin, however, said that signing onto the PCI alone would not be enough to secure Ghana’s long-term economic future.
“Signing up for policy instruments again will not be sufficient for Ghana,” he warned.
He urged the government to take a bolder step by using the PCI as a pathway to access the IMF’s Resilience and Sustainability Facility (RSF), which provides financial support for countries dealing with environmental and climate-related risks.
“What government needs to do right now is to be bold,” he said.
According to him, the facility could help Ghana address the growing threat posed by irresponsible mining, coastal erosion and environmental degradation.
“The RCF would empower us to address our environmental and irresponsible mining [issues] and then fight the threat of coastal erosion,” he explained.
Prof. Bokpin said the government may have been reluctant to aggressively tackle illegal mining because of fears that disruptions in gold supply could affect the cedi and create balance of payment challenges.
However, he said that support from the IMF facility would provide financial backing if such economic shocks occur.
“Once you sign up for this RCF, the resilience and sustainability facility, it gives you room, a financial backing that you can tap into,” he stated.
The economist also raised concerns about the growing pollution of water bodies across the country, especially in food-producing regions.
“More than 40% of water bodies in Ghana’s food basket regions in the south are all polluted,” he revealed.
He warned that Ghana cannot talk about long-term fiscal sustainability while environmental destruction continues unchecked.
“You cannot talk about fiscal sustainability in the face of all this risk emerging,” he said.
Prof Bokpin further said that economic transformation and environmental protection must go hand in hand.
“There is no way we can separate the environment, ecological integrity, from economic transformation. It’s a joke,” he added.
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