The World Bank has warned that Ghana's business environment remains a major constraint to the country's growth potential. Unreliable and costly connectivity increases operating expenses, fragments markets, and discourages private investment. This assessment highlights significant challenges for Ghana's economic diversification efforts.
These issues are particularly concerning for Ghana's ambition to move beyond extractive industries like gold and cocoa. High business costs make it harder for new sectors to thrive and attract necessary capital. The Bank emphasized that improving these conditions is vital for future economic stability.
This warning comes despite Ghana's strong recovery in key macroeconomic indicators. The economy grew by 6.0% in 2025, its fastest pace since 2019. Growth further accelerated to 6.4% in the first quarter of 2026. Inflation also declined sharply, falling from 23.2% in February 2025 to 4.6%. Public debt dropped from 70.3% of GDP in 2024 to 49% at the end of 2025, showing significant fiscal improvement.
Robert Taliercio O’Brien, World Bank Division Director for Ghana, Sierra Leone, and Liberia, spoke at the 10th Ghana Economic Update launch in Accra. He stated, “The business environment is a further drag on growth potential.” He added that costly connectivity discourages private investment in non-extractive sectors. These sectors are crucial for Ghana's long-term diversification strategy.
The World Bank also identified Ghana's transport sector as a critical area needing reform. Poor connectivity limits productivity, competitiveness, and job creation across the economy. Only 27% of Ghana's approximately 94,200-kilometre road network is paved. More than half of this network is in fair to poor condition, with feeder roads especially affected. Taliercio stressed that transport is not just an infrastructure issue but a key driver of economic growth. This perspective underscores the urgency of addressing these foundational problems.
The Bank cautioned that recent macroeconomic gains could remain vulnerable if structural constraints affecting businesses are not addressed. Decision-makers must focus on improving infrastructure and reducing operational costs for businesses. This will ensure that Ghana's economic recovery translates into sustainable and inclusive growth for all citizens. Investors will closely watch government actions in these critical areas.
The Tenth Ghana Economic Update provides a detailed assessment of Ghana’s recent economic performance. It also outlines policy measures the World Bank believes are necessary. These measures aim to sustain the recovery and promote stronger, more inclusive growth. Addressing these structural issues will be key to Ghana's long-term prosperity. The government's response to these recommendations will shape future economic outcomes.