World Bank Sounds Alarm on Ghana’s Resource Mismanagement Crisis

World Bank Group Office Accra

The World Bank (WB) has delivered a stark warning that Ghana’s economic transformation hinges critically on reversing decades of natural resource mismanagement, with the country’s development trajectory at a crossroads that could determine prosperity for an entire generation.

In its comprehensive 2025 Policy Notes report titled “Transforming Ghana in a Generation,” the multilateral institution outlined how productivity, infrastructure and skills development will prove decisive for long-term growth, while warning that without bold action, the country risks repeating cycles of fiscal crises.

The assessment reveals that Ghana’s per capita income has remained stagnant at approximately US$2,200, while the economy struggles with limited job creation and an informal employment sector that dominates the labor market. The WB’s modeling demonstrates that Ghana possesses the potential to triple per capita incomes to $6,600 by 2050 and sustain annual growth exceeding 6.5 percent through strategic investments.

Regional inequalities plague the West African nation alongside declining human capital indicators in education and healthcare. Governance weaknesses and overreliance on natural resource extraction without value addition continue constraining productivity gains and sustainable economic expansion.

The Bank’s analysis identifies infrastructure deficits across transport networks, digital connectivity, water systems, sanitation facilities, and urban services as fundamental barriers to unlocking economic potential. Environmental degradation from artisanal mining operations and insufficient disaster preparedness mechanisms compound these challenges, creating risks for both communities and business operations.

According to the report, without comprehensive reforms, growth plateaus around 3.8%, delaying upper-middle-income status beyond 2050, while governance challenges persist in obstructing policy reforms and structural transformation.

The WB proposes five strategic intervention areas under its natural resources and infrastructure framework. Environmental protection enforcement represents the first pillar, focusing on ensuring artisanal mining and marine economy activities operate without ecosystem damage. Disaster risk financing and social protection systems require strengthening to enable rapid responses to natural disasters and economic shocks.

Agricultural productivity enhancement through climate-smart technologies, sustainable farming practices, quality inputs, and modern infrastructure constitutes the third priority area. Agribusiness and value-chain development aims to add value to agricultural products while creating growth opportunities through public-private partnerships (PPPs).

The fifth pillar emphasizes sustainable, resilient infrastructure expansion and modernization across transport, digital networks, water, sanitation, and urban systems, leveraging PPPs for long-term sustainability and financing.

The institution warned that Ghana has already triggered 17 International Monetary Fund (IMF) programmes throughout its post-independence history, underscoring the urgency for breaking cyclical economic crises through comprehensive structural reforms.

Implementation of these strategic areas could broaden Ghana’s production base, enhance economic resilience, generate employment opportunities, and accelerate overall growth rates. The Bank’s economic modeling suggests ambitious reform implementation could enable sustained annual growth of approximately 6.5%, fundamentally transforming the country’s economic landscape within a generation.

The timing of these recommendations proves particularly significant as Ghana approaches critical policy decisions and electoral processes that will shape development strategies for the next decade. The WB emphasizes that current political dynamics provide unique opportunities for implementing transformative reforms that address structural challenges accumulated over decades of resource mismanagement.

The assessment underscores modernizing the economy, improving productivity metrics, and closing infrastructure gaps as immediate priorities for sustainable development and competitive positioning within regional and global markets.

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