AfDB warns Ghana’s growth prospects could be constrained by financing gap
The African Development Bank (AfDB) has warned that Ghana’s long-term development goals could be threatened by a substantial investment financing gap, despite expectations of sustained economic growth over the next two years.
In its African Economic Outlook 2026 report, the AfDB projected that Ghana’s economy will grow by 5.0 percent in 2026 and 5.4 percent in 2027, following an estimated growth rate of 5.8 percent in 2025.
However, the Bank cautioned that maintaining this growth trajectory will require decisive action to address structural financing challenges and attract greater levels of long-term investment.
According to the report, Ghana faces an investment financing gap equivalent to approximately 9 percent of Gross Domestic Product (GDP), driven largely by high public debt, weak domestic revenue mobilisation, and tighter global financial conditions.
“High public debt, low domestic revenue, and tighter global financial conditions have constrained access to long-term, affordable capital. Addressing these challenges requires diversifying the economy, deepening policy, regulatory, and institutional reforms, and integrating domestic and international financial systems to mobilise resources at scale,” the report stated.
The AfDB stressed that preserving macroeconomic stability will be essential to attracting both local and international investors.
“A stable macroeconomic environment with sustainable debt, transparent institutions, and efficient financial intermediation is critical to attract domestic and foreign capital to priority development objectives,” the report noted.
The Bank also called for stronger coordination between fiscal and monetary policies, enhanced regulatory frameworks, improved financial infrastructure, and greater transparency in public financial management.
It noted that policy consistency and institutional reforms will play a vital role in stimulating private sector investment and unlocking concessional financing opportunities.
To narrow the financing gap, the AfDB urged Ghana to intensify domestic resource mobilisation efforts by broadening the tax base, strengthening revenue collection systems, and expanding local currency capital markets.
The report further recommended the effective use of catalytic and concessional financing through public-private partnerships and blended finance instruments to reduce investment risks in key sectors such as infrastructure, healthcare, education, and energy transition projects.
“Catalytic and concessional financing should be deployed effectively through public-private partnerships and structured blended finance instruments to de-risk investment in infrastructure, health, education, and the energy transition,” the report said.
According to the Bank, such measures would help attract private capital, enhance economic resilience, and support inclusive and sustainable growth.
Despite the challenges, the AfDB maintained a positive outlook for Ghana’s economy, citing improving investor confidence, prudent macroeconomic management, and continued expansion in the services sector and household consumption.
The report also forecast that economic growth in West Africa will stabilise at 4.7 percent in 2026 and 4.5 percent in 2027, compared to an estimated 4.8 percent in 2025. It added that 10 of the region’s 15 countries are expected to record growth rates of at least 5 percent, placing them among the fastest-growing economies on the continent.
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