Theo Acheampong says Ghana reset its economy in 18 months

Dr. Theo Acheampong, a Technical Advisor at the Ministry of Finance and economist, has stated that Ghana has successfully reset its economic fundamentals within an 18-month period following a major crisis. Speaking on the country’s recovery trajectory, he observed that this turnaround, which typically takes five years in similar international contexts, is the result of aggressive fiscal reforms rather than just external market conditions. He emphasized that while commodity prices, particularly gold, have been favorable, the recovery is primarily driven by internal structural changes in government operations.

A significant component of this economic reset has been the government's aggressive approach to debt management. According to Acheampong, the government cleared nearly GH‵29 billion in arrears during 2025, a figure that significantly surpassed the initial budget allocation of GH‵13 billion for the year. This expenditure reflects a deliberate commitment to resolving outstanding financial obligations while maintaining broader fiscal discipline, which has played a crucial role in restoring the country’s debt servicing capacity.

The economist also highlighted the elimination of backlogs in statutory fund transfers as a vital indicator of the recovery's health. For the first time in several years, the government has maintained timely payments to essential funds, including the District Assemblies Common Fund (DACF) and the National Health Insurance Fund (NHIF), with no backlogs reported from January through September. Acheampong credited this consistency to improved tax collection mechanisms and a rising tax-to-GDP ratio, supported by more stringent spending controls implemented across various state sectors.

These reforms have reportedly bolstered investor confidence as international observers monitor how Ghana has rapidly restored its economic baseline. Acheampong noted that the consistent fulfillment of financial obligations is directly influencing the country’s ability to manage its debt and attract further investment. Moving forward, the focus remains on sustaining these spending controls and fiscal management strategies to ensure that the rapid recovery translates into long-term economic stability.