Ghana ranks low in transformation index

Despite being one of Africa's fastest-growing economies with an impressive 8% growth rate, Ghana finds itself ranked near the bottom of the continent's economic transformation index, according to a recent report by the African Centre for Economic Transformation (ACET).

The report highlights a critical disconnect: Ghana's growth, largely fuelled by extracting and exporting raw materials such as gold, oil and cocoa, has failed to generate sufficient jobs, increase incomes, or provide enough revenue for essential public services. 

This growth-without-transformation model has left the country vulnerable to global market fluctuations, as evidenced by recent economic downturns triggered by China's reduced demand for raw materials.

Speaking at the presentation of the report, the President of ACET, Mavis Owusu-Gyamfi, said true economic transformation required reinvesting profits from natural resources into building competitive industries that add value to these raw materials within Ghana's borders.

She said Ghana must be known not just for cocoa, but for the best chocolate in the world.

She cited an example of the missed potential, including Ghanaian-designed wooden sunglasses that must be finished overseas due to high local production costs, and niche chocolate companies struggling to compete globally despite Ghana being one of the world's top cocoa producers. 

Similarly, local beauty products using cocoa and shea butter ingredients see their innovative formulations commercialised by foreign companies rather than domestic industries.

Lost opportunities 

This pattern represents not just lost economic opportunities but a brain drain where Ghanaian creativity and innovation benefit other economies. 

Mrs Owusu-Gyamfi said while the intellectual capital exists locally, high production costs and technological limitations force production overseas, resulting in a fragmented value chain that primarily benefits foreign markets.

The report also emphasises regional integration, noting that Ghana's transformation strategy must consider its role within West Africa and the broader continent. 

The ACET President highlighted the importance of collaboration and trade with other African countries to build continental competitive advantage.

The presentation comes as Ghana, like many African economies, faces significant headwinds from global economic uncertainty. 

The report, which was released a day after the two-day National Economic Forum, argues that countries dependent on raw material exports suffer disproportionately during global downturns, while those with diversified, value-adding economies demonstrate greater resilience.

Ms Owusu-Gyamfi therefore challenged policymakers, business leaders and citizens to use this data to hold leadership accountable for implementing transformation strategies.