A GNA feature by Francis Ntow
Accra, May 11, GNA – Since Ghana attained independence in 1957, the United Nations Development Programme (UNDP) has remained a steadfast development partner, supporting the country through every phase of its political, economic and social transformation while promoting inclusive growth that “leaves no one behind.”
Ghana, situated along the Gulf of Guinea and recognised as the world’s second-largest cocoa producer, has made significant progress over the decades.
However, the country continues to grapple with challenges relating to sustainable development, unemployment and economic vulnerability.
Over the years, Ghana has implemented 17 loan-supported programmes with the International Monetary Fund (IMF), alongside several development initiatives with the World Bank and UNDP.
Although Ghana’s development trajectory has recently shown encouraging signs of resilience, structural vulnerabilities remain, particularly in agriculture, industrialisation and food security, Mr Niloy Banerjee, the UNDP Resident Representative in Ghana, has said.
In an exclusive interview with the Ghana News Agency, Mr Banerjee offered a candid assessment of Ghana’s progress towards achieving the Sustainable Development Goals (SDGs), while identifying key priorities that would determine whether the country could sustain its momentum beyond the current IMF programme.
Economic discipline amid lingering challenges
Mr Banerjee acknowledged Ghana’s efforts at economic recovery following the twin shocks of the COVID-19 pandemic and the 2022 debt default, describing the country’s post-crisis management as one of the most encouraging developments he had witnessed since assuming office in September 2024.
“There has been reasonably good discipline. There has been rationalisation of taxes and efforts to address challenges in the power sector. The overall management of the economy has been quite impressive,” he said.
He commended Ghana’s progress in digitalisation and artificial intelligence, describing the country’s growing technological agenda as a notable achievement.
However, Mr Banerjee identified illegal mining, otherwise known as ‘galamsey’, and the deteriorating state of agriculture as two major areas where Ghana’s development efforts continue to fall short.
Many communities, he noted, engaged in illegal mining out of economic desperation.
“If your house is sitting on land with gold underneath, and you do not have food to eat, what are you going to do?” he asked.
Mr Banerjee called for a balanced approach that addresses poverty while ensuring environmental sustainability, advocating regulated and environmentally responsible mining practices.
He noted that UNDP, in collaboration with non-governmental organisations and other institutions, was supporting community sensitisation programmes to encourage sustainable mining methods.
“If we do this sustainably, it is something Ghanaians will benefit from for a long time,” he added.
High cost of living remains a major concern
Despite the progress recorded over the years, Ghana continues to face high cost of living.
According to Numbeo’s 2026 Cost of Living Index, Ghana ranks 12th among 23 African countries and 113th globally out of 155 countries, with rising food, transport, housing and utility costs placing significant pressure on households.
Mr Banerjee described the cost of living as a daily struggle for many citizens, attributing the situation largely to Ghana’s dependence on imports, particularly food items such as rice.
“Cost of living is very high here. If you want to eat mushrooms, it is more expensive here than in Manhattan, New York,” he observed.
He explained that Ghana’s dependence on road transportation and imported commodities made the economy highly vulnerable to fluctuations in fuel and fertiliser prices.
“Food moves by road, and for every increase in diesel prices, the cost of rice goes up. We are vulnerable to food prices, fertiliser prices and fuel price increases. Together, they can create a perfect storm,” he cautioned.
To address the challenge, Mr Banerjee said UNDP was pursuing a two-pronged strategy focused on structural transformation and grassroots empowerment.
The structural approach involves promoting industrialisation, value addition and agricultural reforms, while the grassroots strategy seeks to support small and medium-sized enterprises (SMEs), youth innovation and access to affordable financing.
He stressed the need for Ghana to prioritise local processing of natural resources such as cocoa, shea and cashew instead of exporting raw materials.
Mr Banerjee proposed the creation of industrial parks with reliable power supply and investment incentives to enable businesses to scale up into major manufacturing hubs.
Agriculture must be transformed
Mr Banerjee described agriculture as a “sleeping giant” in urgent need of transformation.
He warned that the average age of Ghanaian farmers was nearing 60, while many young people showed little interest in farming as a career.
“When this generation retires, we could face even greater challenges in food production, food security and cost of living,” he said.
He called for deliberate policies that would make agriculture more attractive to young people through technology, innovation and large-scale investment.
While acknowledging government efforts to revitalise the sector, Mr Banerjee stressed that sustainable transformation would require large-scale agro-industrial investments rather than fragmented initiatives.
Drawing comparisons with Malaysia, which gained independence in the same year as Ghana, he noted that the Southeast Asian country had successfully transformed itself into a global manufacturing hub through strategic industrialisation and competitive investment policies.
He urged Ghana to pursue a similar path by adding value to its abundant natural resources, including cocoa, gold and shea.
IMF exit presents both opportunity and responsibility
With Ghana’s IMF Extended Credit Facility (ECF) programme nearing completion, Mr Banerjee described the transition as both an opportunity and a critical test of institutional discipline.
While commending Ghana’s performance under the programme, he warned that the post-IMF period had historically been characterised by weakened fiscal discipline, especially during election cycles.
“Every democracy has this challenge. But Ghanaian citizens must remain uncompromising when it comes to protecting institutions,” he said.
Mr Banerjee underscored the importance of safeguarding the independence of key state institutions such as the Bank of Ghana, the Electoral Commission, and the Commission on Human Rights and Administrative Justice (CHRAJ).
“You cannot interfere with the autonomy of the Bank of Ghana for short-term electoral considerations,” he said.
He also highlighted the critical role of the media and civil society in holding governments accountable after the IMF programme concludes.
Improving credit ratings for sustainable financing
Mr Banerjee revealed that one of UNDP’s major engagements with the Ministry of Finance and the Bank of Ghana was focused on improving Ghana’s sovereign credit ratings.
He explained that stronger ratings from agencies such as Fitch, Moody’s and Standard & Poor’s would reduce Ghana’s borrowing costs on international capital markets and make financing more accessible for infrastructure and industrial development.
“We have been working with the Bank of Ghana on how to engage these credit rating agencies to achieve better outcomes. Better credit ratings after the IMF exit will help Ghana borrow at lower interest rates,” he said.
Peace and security remain essential
Mr Banerjee emphasised that Ghana’s development aspirations could only be realised in an environment of peace and security.
“If peace and security do not hold, all of this dreaming, building and creating is in jeopardy,” he warned.
He explained that peace and security remained one of UNDP’s three major priorities in Ghana, alongside macroeconomic stability, and entrepreneurship support.
He noted that creating economic opportunities for young people was critical to preventing frustration, social unrest and radicalisation.
Youth innovation exceeding expectations
On youth empowerment, the UNDP Resident Representative disclosed that the Programme had surpassed its target by reaching 12,000 young Ghanaians through entrepreneurship programmes, against an initial target of 6,000.
He explained that the initiative focused on young people from rural and underserved communities, providing them with mentorship, training and business development support over nearly two years.
Among the innovations developed by participants were a motorised walking aid for visually impaired persons and a wearable nebuliser for people with respiratory conditions.
“These are examples of local innovation with real market potential,” he noted.
However, he identified limited access to patient capital as one of the biggest barriers preventing young entrepreneurs from scaling up their businesses.
The road ahead
Concluding the interview, Mr Banerjee expressed cautious optimism about Ghana’s future, describing the country as one endowed with abundant natural resources, entrepreneurial energy and strong institutional foundations.
“This is the continent’s moment,” he said. “Ghana has everything it needs. The question is whether it will invest deliberately, coordinate effectively and execute consistently.”
As Ghana charts its path towards economic recovery and sustainable development, the enduring partnership between the country and UNDP continues to underscore the importance of inclusive growth, strong institutions and strategic investment in people.
With deliberate policies, innovation and collective commitment, Ghana has the opportunity to transform its vast potential into lasting prosperity for all.
GNA
Edited by Agnes Boye-Doe
Reporter: Francis Ntow
[email protected]