Economic advisor and former Finance Minister, Seth Terkper, says Ghana is taking concrete steps to avoid another economic downturn.
Speaking on PM Express Business Edition on June 12, Terkper revealed that the government is actively funding the sinking and stabilization funds to prepare for future fiscal shocks. “We are populating the sinking fund. We are populating the stabilization fund,” he emphasized, quoting the current Finance Minister.
According to him, these efforts are part of broader structural reforms aimed at avoiding the recurring boom-and-bust cycles in Ghana’s economy. “It takes hard work, planning, and learning from past mistakes,” he said. “We’ve moved from HIPC and other economic troubles toward some level of stability. That’s a major shift.”
Terkper noted that Ghana is now gradually reversing the negative trends caused by years of fiscal pressure. He recalled past economic challenges, including the single spine salary structure, mounting arrears, and tough negotiations with labor unions over compensation.
When host George Wiafe pointed out the recent progress under the current economic team, Terkper agreed but issued a word of caution.
“Yes, things are improving,” he said. “But both the Finance Minister and the President made it clear that while short-term wins matter, the medium-term goals are just as critical.”
He stressed that past experience shows the danger of complacency. “Even when things look good, we must stay focused. History reminds us not to relax.”
To ensure fiscal responsibility, the administration is introducing financial rules. “We’re setting debt ceilings and floors, as well as deficit limits to guide policy over the medium term,” he explained.
Terkper concluded by urging Ghanaians to focus not only on immediate improvements but also on building lasting stability, resilience, and discipline.
“That’s the only way forward,” he said.
