Speaking on Joy FM on Monday, February 17 2025, the Finance and Economics Professor at the University of Ghana said President Nana Akufo-Addo’s insistence on exiting the programme in 2026 may be premature, given the country’s current economic challenges.

“We are an economy that is struggling. We are in a worse situation than we were when we went to the IMF,” Prof. Bokpin said, arguing that Ghana should not rule out extending the programme if necessary.

The economist warned that leaving the IMF programme too soon could send the wrong signals to investors who prioritise long-term economic stability.

“When people are investing, they want stability for the long term, not just one or two years. Otherwise, those considering long-term commitments may hesitate,” he noted.

Prof. Bokpin also pointed out that Ghana’s inability to access the international capital market until 2027 further complicates the situation.

He referenced advice from the World Bank, which has cautioned Ghana against rushing back to the market, stating that countries that restructure their debt typically need three to four years to regain investor confidence.

Another major concern raised by Prof. Bokpin is inefficiencies in the country’s tax system. He revealed that just 41% of Ghana’s economy contributes 86% of tax revenue, meaning a significant portion of economic activity remains untaxed.

“A large chunk of our economy is not taxable. The bigger percentage of our economy contributes just about 40% of tax revenue,” he said.

While acknowledging government efforts to improve tax education and administration, he suggested that properly taxing high-net-worth individuals could generate up to $160 million annually.

He also warned against overburdening compliant taxpayers with additional levies, saying, “If we are not careful, we will kill the chicken that lays the egg.”

Prof. Bokpin’s concerns come as Ghana implements various fiscal measures under its $3 billion IMF programme, which began in 2023.

While the government remains optimistic about meeting its fiscal targets through improved tax collection and spending controls, he believes a more strategic approach, including the possibility of extending the programme would better serve the country’s economic future.

“The idea of reviewing the programme with the possibility of an extension should not be off the table,” he added.