The Centre for Research and Policy Analysis (CERPA) has critically examined the 2025 budget, questioning the viability of the government’s ambitious ‘Big Push’ economic strategy. While the plan aims to drive infrastructure development and economic recovery, CERPA warns that its success hinges on prudent fiscal management, sustainable revenue generation, and effective implementation
CERPA’s review of Ghana’s 2025 budget highlights the strengths and weaknesses of the flagship policies but warns that success hinges on effective implementation, sustainable financing, and oversight. It urges fiscal discipline, stakeholder engagement, and structured execution to ensure tangible national progress.
The Centre for Economic Research and Policy Analysis (CERPA) has conducted an in-depth review of the 2025 Budget Statement, evaluating the bold policy initiatives set to shape Ghana‘s economic future. The assessment highlights key strengths, potential pitfalls, and strategic recommendations to enhance impact.
Among the major policies under scrutiny are the ambitious $10 billion “Big Push” infrastructure plan, the financial sustainability of the proposed Women’s Development Bank, and the feasibility of the Agriculture for Economic Transformation Agenda (AETA). CERPA’s review raises critical questions: Can Ghana realistically fund its infrastructure ambitions? Will the Women’s Development Bank unlock new opportunities for female entrepreneurs? And how can AETA bridge the gap between policy and execution?
It also raises critical questions about the sustainability of the Free First-Year Education policy in public tertiary institutions and the potential risks associated with the Ghana Labour Export Programme.
The review of the major policies conducted as part of CERPA’s analysis of the 2025 Budget Statement. CERPA further recommends that structured execution strategies will be essential for translating these ambitious policies into tangible national progress.
Find the full details of the analysis below:
Strength
Extending traditional working hours has the potential to significantly boost productivity. By maximizing the efficient utilization of resources, businesses can optimize their output and improve operational effectiveness. With a corresponding increase in demand, participating businesses stand to generate substantial revenue growth.
Additionally, extending business hours necessitates an expanded workforce, thereby creating new employment opportunities. Given Ghana’s current unemployment rate of over 14%, this policy could play a pivotal role in addressing this challenge. The government’s proposal to implement a three-shift system would, in turn, create numerous job opportunities, helping to reduce unemployment and foster economic growth
Weakness
However, the policy, as outlined in the budget, lacks a comprehensive and detailed framework for effective implementation, rendering any analysis of its impact speculative at this stage. The budget lacks clarity on how job creation will be financed, whether through the public sector or the private sector.
Recommendations
Given the novel nature of this policy in Ghana, an incremental or phased implementation approach is advisable. Such a strategy would allow for the identification and resolution of any initial challenges, while simultaneously providing valuable insights and experience for the successful execution of subsequent phases.
Engaging in broader stakeholder consultations with labor unions, businesses, community leaders, government representatives, and other key players will be crucial in addressing concerns related to fair wages, worker safety, and work-life balance, among others.
Furthermore, the government should draw lessons from the successful implementation of similar policies in global cities like Tokyo, major urban centers in China, Johannesburg, and Cape Town. This would provide invaluable guidance on the requisite infrastructure, security measures, and governmental support needed to adapt the policy effectively within the unique context of Ghana.
Women’s Development Bank
Strength
The proposed Women’s Development Bank by the Government of Ghana is a transformative initiative aimed at empowering women entrepreneurs and businesses. Providing targeted support will not only foster the growth of women-led enterprises, but also significantly contribute to job creation and economic enhancement, ultimately fostering sustainable development across the entire country.
Weakness
While the initiative holds potential, it raises significant concerns regarding its feasibility, cost, and long-term sustainability, particularly in light of Ghana’s current economic challenges. The seed fund of GH₵51.3 million allocated for its establishment falls significantly short of the GH₵400 million minimum requirement for opening a bank in Ghana, raising serious questions about the financial viability and readiness of the initiative. The stringent requirements for establishing and operating a bank further exacerbate these concerns, casting doubt on the practicality of successfully implementing such an ambitious project in the present financial climate.
Recommendations
We recommend that the government should enhance existing initiatives like Microfinance and Small Loans Centre (MASLOC) and the Ghana Enterprises Agency (GEA) to ensure that resources are used efficiently and that more women benefit from these programs.
Also, the Government can partner with private financial institutions to create tailored financial products for women entrepreneurs. This would reduce the need for a state-owned bank and leverage the expertise of the private sector.
Agriculture for Economic Transformation Agenda (AETA)
Strength
The Agriculture for Economic Transformation Agenda (AETA), as outlined in Ghana’s 2025 Budget Statement and Economic Policy Document, presents a transformative opportunity for the nation’s agricultural sector. By attracting youth and professionals, AETA addresses key challenges while unlocking untapped potential in agriculture.
When effectively implemented, AETA is set to strengthen food security, reduce dependence on food imports, and mitigate external economic shocks. It promises to boost domestic agricultural productivity, fostering a more self-reliant and resilient economy.
AETA also has the potential to create widespread job opportunities across the agricultural value chain—from production to processing and distribution—driving socio-economic development, particularly in rural areas. This can help reduce urban migration pressures and promote balanced regional development.
Furthermore, AETA’s focus on sustainable agricultural practices offers a path to a climate-resilient sector, ensuring long-term food security and environmental sustainability amid climate change challenges.
Weakness
A key challenge facing AETA is the lack of a clear, transparent implementation framework. Without detailed timelines, clear responsibilities, and defined performance metrics, the policy risks inefficiencies and delays. Transparency is essential for effective execution and for maintaining public and stakeholder trust.
Previous agricultural initiatives in Ghana have been vulnerable to corruption and political influence. If AETA does not implement strong governance and oversight mechanisms, there is a risk of resource diversion and undermining the policy’s objectives. Strong accountability measures are critical to maintaining integrity and achieving desired outcomes.
AETA’s success depends on reliable and sustainable funding. The absence of a clear, dedicated financial mechanism raises concerns about potential disruptions and delays. Establishing a stable financing model, involving both public and private sectors, is essential for AETA’s long-term success and effective implementation.
Recommendations
The policy must prioritise facilitating easy access to affordable financing for farmers to enable them to scale up production effectively. Providing financial support through low-interest loans, subsidies, or innovative credit mechanisms will empower farmers to invest in modern technology, improved inputs, and sustainable farming practices, ultimately driving increased agricultural productivity and growth.
To mitigate the risk of a market glut resulting from bumper harvests, the policy must include strategies for establishing robust, well-organized markets. It should also focus on creating efficient supply chains that ensure products reach consumers at low cost. Investments in infrastructure, transportation, and market linkages will be critical to reducing post-harvest losses, stabilizing prices, and ensuring that farmers can sell their produce in a timely and cost-effective manner.
Furthermore, there should be a connection between the agriculture department of our universities, enabling faculty members to organise periodic short training sessions for farmers as well as keep them updated on the current trends in the demand for agricultural products.
$10b “Big Push” Infrastructure Development
Strength
The Government of Ghana’s $10 billion “Big Push” Infrastructure Development initiative is poised to serve as a significant economic stimulus, driving growth and improving national infrastructure. When executed effectively, the project has the potential to attract Foreign Direct Investment (FDI), propelling further investment and fostering long-term economic diversification.
In addition to its macroeconomic benefits, the initiative will create substantial job opportunities across various sectors, including engineers, project managers, and skilled and unskilled laborers. Beyond direct employment, the project is expected to generate indirect jobs in the supply chain, benefiting suppliers, contractors, and service providers, thus enhancing the overall labor market and local business ecosystem.
Weakness
While the Government of Ghana’s $10 billion “Big Push” Infrastructure Development initiative is an ambitious and potentially transformative policy, several challenges may hinder its successful execution. Mobilizing such a significant amount of capital, especially within the context of the country’s current economic constraints and limited fiscal space, presents a substantial obstacle.
Furthermore, Ghana’s history of abandoned infrastructure projects raises concerns about the long-term sustainability of the initiative. Without a clearly defined and reliable source of funding, there is a risk that many projects may be left incomplete, undermining the policy’s overall impact.
Additionally, the risk of cost overruns and the potential for corruption could lead to inflated costs, diminishing the value for money and compromising the efficiency of the initiative. Effective governance structures and stringent oversight will be crucial to ensure that the policy achieves its intended goals without falling prey to these systemic issues.
Recommendations
To enhance the effectiveness and sustainability of the $10 billion “Big Push” Infrastructure Development initiative, several key recommendations are essential:
A clearly defined and reliable source of funding must be secured for the policy to ensure long-term financial stability and prevent project delays.
The government should actively explore Public-Private Partnerships (PPP) to alleviate the fiscal burden on the state and attract private sector investment, thus ensuring that the initiative remains financially viable.
To guarantee accountability and efficiency, the government must prioritize transparent and competitive procurement processes. This will safeguard value for money and minimize the risks of misallocation or waste.
In awarding contracts, special emphasis should be placed on local contractors with good accountability record to build national capacity, ensure greater economic retention, and keep financial resources circulating within the local economy.
The Gold Board
Strength
The establishment of the Gold Board presents a significant opportunity to enhance the efficiency and organization of Ghana’s gold industry. By streamlining key activities – such as mining, refining, and exportation – the Gold Board could introduce greater oversight and coordination, especially in the context of the prevalent challenges posed by illegal mining.
An optimised and well-regulated gold industry has the potential to substantially increase the country’s foreign exchange earnings. If the Gold Board is successful in curbing illicit mining activities and ensuring that the full extent of gold mined domestically is properly accounted for, Ghana could realise a much higher share of its gold wealth, boosting both national revenue and economic growth.
Weakness
A key challenge facing the Gold Board policy is the potential for duplication of duties and overlapping functions, given the existing roles of the Minerals Commission and the PMMC. This redundancy could create inefficiencies and confusion in regulatory processes.
Additionally, the introduction of a new regulatory body may encounter resistance from industry stakeholders, who could view the Gold Board as an added layer of bureaucracy. Such opposition could exacerbate the bureaucratic challenges already present in the sector, hindering the policy’s smooth implementation and effectiveness.
Recommendation
To ensure broader acceptance and minimize resistance, the Gold Board policy must incorporate comprehensive stakeholder engagement. Actively involving all sector players in the decision-making process will foster collaboration and build industry trust.
The board should prioritize the integration of advanced technologies to enhance gold valuation, fraud detection, and regulatory compliance. This will ensure a more transparent, efficient, and secure framework for managing Ghana’s gold resources.
Ghana Labour Export Programme
Strength
The Ghana Labour Export Programme Policy has the potential to create significant employment opportunities for Ghanaians in the global labour market. When effectively implemented, the policy could drive a notable increase in remittances, contributing positively to the country’s economy.
Furthermore, it holds the promise of facilitating the transfer of valuable knowledge and technology, fostering overall national development.
Weakness
The Ghana Labour Export Programme Policy, if not adequately regulated, may result in the unintended consequence of a brain drain, as skilled professionals could be enticed to work abroad, potentially depleting the nation’s talent pool.
Moreover, without the necessary safeguards in place, there is a risk that Ghanaians employed overseas may be vulnerable to exploitation and substandard working conditions, undermining the benefits of international employment opportunities.
Recommendation
The Ghana Labour Export Programme Policy must ensure stringent bilateral agreements with destination countries to protect workers’ rights and ensure fair treatment. It should also include Pre-Departure Training to equip workers with adaptability skills, cultural orientation, and reporting systems.
Additionally, a reintegration program for returning workers is essential to harness the skills, knowledge, and experience they bring back for national development.
Free first-year education policy” in public tertiary institutions
Strength
Government in the 2025 budget has allocated GH¢499.8 million for the “free first-year education policy” in public tertiary institutions. This initiative will contribute to alleviating the financial burden on students entering tertiary institutions as well as increasing access to higher education in Ghana. This new policy is a positive step toward making higher education more accessible in Ghana
Weakness
While this policy initiative is laudable, issue of adequate infrastructure to accommodate the increase in student enrolment is a concern. The policy will again have a severe negative impact on the operations of private tertiary institutions in Ghana.
Recommendation
Government must ensure reliable source of funding for the sustainability of the policy without compromising other critical sectors. It is also important to critically assess how other private tertiary institutions can benefit from this initiative to avoid their potential student enrolment challenges and avoid their subsequent collapse.
Last Updated on April 2, 2025 by samboad
