Ghana must significantly reduce the size of government and redirect public resources towards productive economic activity, former Trade and Industry Minister Alan Kwadwo Kyerematen has proposed.

Speaking at a public lecture at the British Council on “Transformation of the Ghanaian Economy: From Stability to Prosperity,” Alan Kyeremanten called for a reduction in the number of ministries, consolidation of government departments and agencies, and a reduction in the size of the public sector.

He says the current structure of government is consuming resources that could otherwise be used to support businesses and create jobs.

“We need to look at reducing the current size of government. Consolidate existing government departments, agencies and public institutions. Reduce the number of public sector employees and certain services of government and limit government expenditure for purposes of development.”

Alan Kyeremanten also proposed what he called “golden handshakes” for some public servants, arguing that they could use such support to leave the public sector and start businesses.

“We need to be able to really deploy some of our public servants. If you can provide the appropriate incentives, such as a golden handshake, to go and start something on your own. Because if you work in the public system, after some time you know what happens.”

He also called for an aggressive approach to the privatisation of state-owned enterprises, arguing that government should create greater room for private-sector participation.

Alan Kyeremanten added that Ghana cannot achieve economic transformation while a large proportion of public resources continues to be spent on maintaining the public sector.