By Kofi Ahovi
Renowned economist and Professor of Finance, Prof. Godfred Bokpin, has issued a stark warning that Ghana is "becoming a failed state" as persistent infrastructure failures, particularly prolonged electricity outages, continue to erode investor confidence and threaten the country's ability to capitalize on opportunities under the African Continental Free Trade Area (AfCFTA).
His comments come at a time when parts of the national capital have been without electricity since dawn on July 29, raising fresh concerns over the reliability of Ghana's power supply and its implications for businesses and economic activity.
"Can you imagine the lights going out in London for just a second?" he asked.
Speaking on the topic, "The Future of Intra-African Trade: Opportunities, Challenges and the Role of Ghanaian Businesses under AfCFTA," at the Prudential Bank Business Forum in Accra, Prof. Bokpin said no country aspiring to become a regional trade and investment hub could afford to neglect the basic infrastructure needed to support economic growth.
He argued that while governments have the authority to tax citizens, they are equally obligated to provide quality public services such as reliable electricity, roads and water. Failure to do so, he said, forces the private sector to provide these essential services at a much higher cost, making businesses less competitive.
The state must provide reliable power. Parts of Accra have been without power for hours. We are becoming a failed state. You can imagine any serious country where the capital has been without power for almost six hours. That is not something we should take lightly. It is even a security threat."
Prof. Bokpin warned that Ghana's infrastructure deficiencies are steadily increasing the cost of doing business, discouraging investment and weakening the country's competitiveness at a time when AfCFTA is expected to transform trade across the continent.
He stressed that "Ghana must not fail," urging policymakers to treat infrastructure development as a national priority rather than a political issue.
Ghana must not fail. We know what the challenges are and we know what needs to be done. We must invest in the infrastructure that supports productivity, trade and economic transformation."
The economist questioned how investors could confidently finance large-scale infrastructure projects when the country's basic services remain unreliable.
Referring to the previously proposed Sky Train project, he used humor to underscore the risks posed by unreliable electricity.
"Imagine you were on a Sky Train and the power went off for this long. You know where you would end up," he said, drawing laughter from the audience.
He then added:
"How do investors develop their business models under such conditions? We should not allow this to continue."
Prof. Bokpin said Ghana's infrastructure gap represents both a challenge and a significant investment opportunity.
Citing estimates by the African Development Bank, he said Africa requires between US$130 billion and US$170 billion annually in infrastructure investment, while Ghana alone needs to invest at least US$10 billion every year for the next decade to close its infrastructure deficit.
Given the country's limited fiscal space, he called for stronger collaboration with the private sector through Public-Private Partnerships (PPPs).
The state cannot build all the roads and provide all the infrastructure on its own. We need private capital because government simply does not have the fiscal space."
Prof. Bokpin further argued that Africa cannot fully realize the promise of AfCFTA without investing heavily in transport, logistics and digital payment infrastructure.
He explained that nearly half of economic activity revolves around the movement of people, goods, services and capital.
"About 44 to 45 percent of economic activity is movement—movement of labour, goods and services. Without movement, trade cannot happen. Without digital payment systems and the movement of capital, trade cannot happen."
While acknowledging the rapid growth of digital payments across Africa, he said the continent continues to suffer from poor physical connectivity, citing long travel times within cities and the high cost of air travel between African countries.
According to him, Africa remains the world's most expensive region for air travel despite relatively short distances between destinations, increasing transaction costs and reducing the competitiveness of African businesses.
Prof. Bokpin concluded that addressing deficits in electricity, transport, roads, railways, ports and digital payment systems would be crucial if Ghanaian businesses are to fully seize the opportunities presented by AfCFTA.
Infrastructure is not just a challenge—it is Africa's biggest investment opportunity. If we get power, transport and connectivity right, we will unlock trade, investment and shared prosperity across the continent."
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