According to the 2014 Index of Economic Freedom, Ghana is considered a regional model for political and economic reform. Ghana is also one of the wealthiest countries in West Africa, boasting resources including oil, gold, diamonds and manganese amongst other mineral.
However in spite of the growth in its oil exports, Ghana is struggling economically and, according to reports, it has requested a bailout from the IMF. See http://www.bdlive.co.za/africa/africanbusiness/2014/08/04/ghana-seeks-imf-bailout-for-ailing-currency.
Ghana’s ailing economy is caused primarily by it’s ballooning current account deficit. This phenomenon is replicating itself in many of Africa’s most promising economies. The best way to counter it is to foster a high level of inter-African investment in infrastructure and industrial production, which would increase the value of exports.
Africa’s current account deficit is also worsened by perennial losses in revenue due to capital flight, which is compounded by outdated and poorly implemented national exchange control and tax regulations.
Recent reports have shown that, “repatriation of flight capital will contribute to propelling the sub-continent on a higher sustainable growth path while preserving its financial stability and independence and without mortgaging the welfare of its future generations through external borrowing.” See http://taxjustice.blogspot.com/2010/03/african-capital-repatriation-new-paper.html?m=1. Regional pressure on Western governments and financial institutions would be the most effective way to repatriate capital flight.
The continued failure to drive the kind regional integration that would foster inter-African investment and regulatory harmonisation hampers the sustainable growth of even the most promising African economies, as Ghana’s case clearly illustrates.
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