Ghana’s National Development Planning Commission (NDPC) declared that the country cannot sustainably finance infrastructure development or raise living standards without a nationwide productivity revolution. Dr. Nii Moi Thompson, NDPC Chairman, emphasized that weak productivity is a major barrier to Ghana’s economic growth.
This low productivity severely limits wage growth, reduces business profitability, and restricts the government's ability to collect taxes. Ghana's economy heavily relies on informal activities, with these businesses accounting for approximately 92% of all enterprises. Despite employing nearly 80% of the workforce, the informal sector contributes only about 27% to Ghana's gross domestic product.
This warning comes as the government implements fiscal consolidation measures and tries to reduce its reliance on excessive taxation and borrowing. Dr. Thompson argued that increasing taxes alone will not solve Ghana's revenue challenges. Instead, the country must improve how efficiently labor, capital, land, institutions, and businesses convert effort into output. Ghana's recurring fiscal instability and frequent need for International Monetary Fund (IMF) support are directly linked to these inefficiencies in both public and private sectors.
Speaking at the Ishmael Yamson & Associates Business Roundtable 2026, Dr. Nii Moi Thompson stated, “Ghana’s economy reflects the paradox of so many businesses but so little business.” He further added, “We can’t pay higher wages, increase business profits and expand the tax base to raise enough revenue to finance infrastructure unless we prioritise productivity.”
The NDPC's call implies a significant shift in Ghana's economic strategy. The Commission plans to focus more on employment creation, wage expansion, and productivity-driven development indicators, rather than just gross domestic product growth. Analysts believe this new focus could become central to Ghana’s future fiscal policy, providing an alternative to constant tax increases and stimulating industrial expansion and job creation. This shift aligns with Ghana's long-term development strategy, Vision 2057, which aims for sustainable growth and improved living standards. The NDPC is currently training labor economics analysts nationwide, in collaboration with the International Labour Organization, to support employment-centered planning.
The productivity argument highlights Ghana's core development challenges. A larger tax base cannot be built if businesses remain small, informal, and generate low profits. Higher wages are unsustainable if workers do not produce more value per hour. Financing infrastructure becomes unreliable if government revenues depend on repeatedly increasing taxes on a limited group of compliant taxpayers. Dr. Thompson also questioned the relevance of some state institutions, like COCOBOD, suggesting that restructuring might be needed to improve economic efficiency. The successful execution of this productivity agenda will be the key policy challenge for Ghana moving forward.