Dr. Baah Ayeh Kusi Calls for Prudent Spending to Sustain Ghana’s Economic Recovery

Dr. Baah Ayeh Kusi,Economist and Senior Lecturer at the University of Ghana Business School (UGBS) has emphasized the urgent need for Ghana to cut wasteful expenditure and channel resources into high-impact investments to secure long-term economic recovery. Speaking on the theme “Cutting Waste, Investing Right,” he urged policymakers to prioritize fiscal discipline, transparency, and efficiency in public spending. His call comes at a crucial time as Ghana works to stabilize its economy and rebuild investor confidence.

Dr. Kusi welcomed signs of macroeconomic improvement, including a stronger Ghanaian cedi and a reduction in government spending.

He cautioned, however, that unless the government commits to prudent budgeting and targeted investment in revenue-generating sectors, the gains made so far could quickly erode.

“I am happy that we have been able to cut down on expenditure, which is helping the cedi to appreciate, but now that inflows are improving, we must resist the temptation to return to indiscriminate or scrupulous spending. We need to cut our coat according to our cloth, he said.

Dr. Kumi emphasized the need to avoid Ghana’s overdependence on IMF bailouts, describing it as a troubling cycle that reflects deep structural weaknesses in economic governance.

“Returning to the IMF has become a habit for the country, if we don’t allocate our financial resources well, we will be forced back into that position again. That’s not sustainable,” he said.

Prioritizing High-Impact Sectors

Dr. Kusi identified several priority sectors that should receive focused public investment to stimulate domestic revenue generation. These include agriculture, manufacturing, export-driven industries, and digital services.

He argued that these sectors have the potential to boost employment, improve trade balances, and strengthen fiscal stability if supported with the right policy tools and funding.

“We must channel funds into productive sectors that expand the economy and increase revenue, not just into politically convenient projects, he path to recovery is not just about spending less, it’s about spending smart,” he advised.

A Stronger Cedi, But Risks Remain

Ghana’s currency has seen notable appreciation in recent months. According to the Bank of Ghana, the cedi gained over 40% against the U.S. dollar in the first half of 2025, an impressive turnaround after years of depreciation.

The Economists attributed the gain to improved fiscal discipline, tighter monetary policy, better foreign exchange inflows, and increased gold reserves.

However, Dr. Kusi warned that without structural reforms and fiscal responsibility, the current momentum could be short-lived. “We must maintain this progress through careful planning and not assume that temporary gains mean permanent stability,” he said.

Public Accountability and Budget Discipline

In line with recent recommendations by policy groups like Deloitte Ghana and the Institute for Fiscal Studies (IFS), Dr. Kusi also called for enhanced public accountability in budget execution.

He urged the Ministry of Finance and Parliament to enforce fiscal responsibility laws, publish transparent expenditure reports, and avoid election-year overspending.

Nonetheless, Dr. Kusi called for attention to the fundamental importance of spending discipline and strategic investment.

With cautious optimism, he believes Ghana can consolidate its recovery if it resists the familiar pitfalls of wasteful spending and short-term fixes.

“Economic recovery is not just about numbers, it’s about behaviour, discipline, and long-term vision,” he added.