For decades now, Ghana has been the darling of the multinational organisations and international ratings agencies. At the turn of the millennium, it seemed the country was destined to become one of the stars of the entire global emerging markets. But things have not quite turned out that way. Eric Kwame Amesimeku explains why Ghana is going through hard times.
Few but the most unremitting optimists can fail to be depressed by the economic news coming out of Ghana recently. Once a shining example of progress on the continent, the country has, since 2013, had to deal with an unending stream of bad reviews, not least from the international ratings agencies. Even the International Monetary Fund, one of its most ardent cheerleaders, has become cold in its assessment of its former star pupil.
It wasn’t always like this. Since the 1980s when the West African country took a long hard look at itself and decided to change its trajectory of growth, progress has been more or less consistent. Coming from negative growth at the start of the decade, a programme of economic liberalisation combined with a rationalisation of government expenditure saw it return to growth rates of around 5% by the time it entered the last decade of the last millennium.
Post 2000, market-led reforms were undertaken with even more conviction, leading to a boom in services – especially in telecoms and financial services. With the discovery of oil in 2008 and the commencement of oil production in 2011, it seemed that the former British colony had finally got all its cards lined up in just the right way. In 2011, its GDP growth topped 11%, one of the highest in the world that year.
As a happy consequence. Ghana has b
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