Senyo Hosi, Convener of the OneGhana Movement, has raised alarm over what he calls a deepening productivity crisis in Ghana’s public sector, warning that declining real wages and inefficiencies are undermining both economic performance and public trust.
Speaking on Newsfile on Saturday, March 21, Hosi urged a fundamental rethink of the country’s economic management, calling for a shift toward productivity, transparency, and private sector-led growth.
Describing the labour environment as dysfunctional, he invoked former President John Agyekum Kufuor’s remarks to illustrate what he sees as a system where “we pretend to be paying, and workers pretend to be working.” He warned that falling real incomes have eroded morale and contributed to record-low productivity in the public sector.
“While labour concerns are legitimate, productivity has reached an all-time low and requires urgent national attention,” Hosi said, criticising policymakers for only raising productivity issues during wage negotiations.
He specifically called out the Management Development and Productivity Institute, questioning why it does not regularly release comprehensive reports to guide policy decisions.
Hosi also criticised government spending on goods and services, pointing to inefficiencies in utilities and administrative costs, and highlighting ongoing challenges in local government institutions. “We pay a lot of people for them to just sit there. That is counterproductive. It is irresponsible. It is not proper economics,” he said.
The policy analyst warned against relying on the public sector as the primary source of employment, calling the approach outdated. “Government cannot be the uncle of employment,” he argued, stressing that public sector jobs must generate measurable value to justify their cost. He noted that increasing the wage bill often comes at the expense of investment, taxation efficiency, and borrowing capacity.
Addressing claims that government borrowing is driven by wage payments, Hosi clarified: “We do not borrow to pay salaries. We borrow to fund government expenditure, which includes salaries. That is what every country does.” However, he emphasised that such spending must be matched by productivity gains to ensure economic sustainability.
Hosi placed responsibility for low productivity squarely on the state as the largest employer, warning that a significant share of tax revenue is absorbed by public sector compensation without corresponding output. He called for greater transparency, including a more comprehensive accounting of employment and liabilities across state-owned enterprises.
“We need to be very thorough and open about the data issues,” he said, citing discrepancies between broader government debt figures and official public debt statistics that may obscure the true fiscal picture.
He also warned that declining real wages could drive workers to seek alternative income sources, including unethical practices, potentially harming both public service delivery and private sector efficiency.
Central to his argument was the need to reposition the private sector as the primary engine of economic growth and job creation. “It will always depend on the private sector,” he said, criticising proposals for increased state involvement in sectors like energy as “yesterday’s economics.” He argued that governments have never proven sustainably efficient and productive, and advocated instead for a regulatory and enabling role for the state.
Hosi called for unlocking value chains in key sectors, including natural resources like gold and industrial materials such as aluminium, while investing in public goods and regulatory frameworks to create opportunities for private sector participation. “These are the things that build a resilient economy,” he said.
He expressed dissatisfaction with both the government and opposition parties, accusing them of failing to deliver meaningful economic transformation. At the same time, he praised Minority Leader Alexander Afenyo-Markin for his political leadership, warning against sidelining him.
Hosi concluded by calling for a candid national dialogue on economic policy, stressing the need to move beyond political narratives toward practical solutions. “We cannot run a 21st-century economy with 19th- or 20th-century thinking,” he said, cautioning that while recent fiscal measures may have stabilised the economy, long-term progress depends on improving productivity, empowering the private sector, and implementing structural reforms. Without such changes, he warned, Ghana risks stagnation despite short-term gains.