The 2025 National Economic Dialogue has reignited discussions on Ghana’s economic challenges, with Dr. Ishmael Yamson, Chairman of the Planning Committee, emphasizing that sustainable solutions require a return to fundamental economic principles, fiscal prudence and structural reforms.
Addressing key issues such as fiscal policy mismanagement, weak monetary policy responses, and the persistent struggles of the private sector, Dr. Yamson cautioned against unrealistic economic ambitions while fundamental problems remain unresolved.
“I don’t think we need any wild ideas at all because of the problems we have. If we don’t resolve those problems, we cannot get to the wild situation.
“It doesn’t matter what we do, if fiscal policy is not managed prudently and if monetary policy refuses to respond to the fiscal, we will have what we had in the last administration”
Dr. Ishmael Yamson, Chairman of the National Economic Dialogue 2025 Planning Committee
His comments highlight Ghana’s long-standing economic cycle, where poor coordination between fiscal and monetary policies has contributed to inflationary pressures, exchange rate volatility, and unsustainable debt levels.
According to Dr. Yamson, economic missteps are not new, but they continue to plague national development.
“We’ve been doing this for how many years? So, we know the problem – How do we fix it?”
He urged policymakers to move beyond identifying challenges to implementing concrete solutions.
Highlighting his efforts to bring together the very best people for the National Economic Dialogue 2025, he expressed his joy at the depth of experience that was brought to bear on the forum.
“And for us, the macro(economics) was the biggest elephant in the room because everything in this country is at the macro level. It has gone bizarre.
“So we wanted all of them together, you know, to try and just help us think through why can’t we resolve this simple macro issue?”
Dr. Ishmael Yamson, Chairman of the National Economic Dialogue 2025 Planning Committee
He followed this with his observation of a worrisome cycle, how the country “every now and then” experiences three years of economic stability and five years of instability and asked “how can we go on like this?”
“We need to build a different Ghana for our generations,” he said, lamenting the increased brain drain as a result of the youth losing hope and trust in their country and its leaders.
Fiscal Discipline and Monetary Independence
A key point raised by Dr. Yamson was the necessity for monetary policy to act independently in response to fiscal behavior.
He disagreed with suggestions that Ghana’s fiscal and monetary authorities should merely coordinate their efforts, arguing instead that the central bank must take decisive action when government spending threatens macroeconomic stability.
“The monetary policy people must independently respond to the fiscal – If they are behaving well, they respond, if they are misbehaving, they call them to order. It’s not about coordinating anything. It’s about making the right calls at the right time”
Dr. Ishmael Yamson, Chairman of the National Economic Dialogue 2025 Planning Committee
This perspective underscores the need for an independent central bank that is not pressured to accommodate excessive government borrowing.
Without such fiscal discipline, Dr. Yamson warned, the economy would continue facing cycles of high inflation, currency depreciation, and debt distress.
The Unchanging Private Sector
Beyond macroeconomic policy, Dr. Yamson highlighted the persistent difficulties faced by businesses in Ghana, particularly in securing infrastructure and financing.
He referenced historical challenges that remain largely unchanged.
“If you come to the private sector, the issues we have are not new,” he said, giving examples of challenges from as far back as 1972.
He illustrated this by recounting the experience of an entrepreneur who had to personally invest in infrastructure before running his business.
“A businessman once told me that when he built his factory, he also had to build a road. He had to erect electricity poles. He had to install water pipes. And when he finally set up, he didn’t have money for working capital”
Dr. Ishmael Yamson, Chairman of the National Economic Dialogue 2025 Planning Committee
Decades later, similar structural constraints persist, with businesses struggling to access affordable financing, reliable electricity, and efficient transport networks.
Dr. Yamson stressed that without addressing these fundamental barriers, Ghana’s ambition for industrialization and economic transformation would remain unattainable.
“If you don’t resolve those problems that we know, how do we then make the leap? Because you cannot make the leap when you don’t have room”
Dr. Ishmael Yamson, Chairman of the National Economic Dialogue 2025 Planning Committee
He also admonished political interference in the affairs of State Owned Enterprises (SOEs) as a crippler and urged CEOs to resist political appointments and employment.
“If you are a CEO of merit and you know the number of people you need in your factory is 200 and some politician writes a letter to you to take 900 people.
“Then you accept the letter, you take the 900 and say political interference. Why didn’t you walk away? Why did you tell them that I will not take them? Why don’t you say, “I won’t do it?”
Dr. Ishmael Yamson, Chairman of the National Economic Dialogue 2025 Planning Committee
He gave an example of a SOE CEO he once helped resist similar political directives by asking her to require the politician to provide a clearance form from the Ministry of Finance before compliance.
“And that was the end of the matter,” he exclaimed, emphasizing the need for tact on the part of SOEs in preventing great financial loss to the nation.
Everyone does not need to be employed by the government; it’ll only lead to inefficiencies like Cocobod Ghana and its 10,000 workers.
He stressed the role of the private sector in employing a bulk of the people to lighten the government’s burden
His remarks serve as a stark reminder that Ghana’s economic growth cannot be sustained by rhetoric or temporary fixes.
He called for disciplined fiscal management, stronger monetary oversight, and urgent reforms to ease the burden on businesses.
According to Dr. Yamson, Ghana does not need extravagant economic models but rather practical, long-term strategies that address the root causes of instability.
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