Ghana, a nation bordering Togo, Côte d'Ivoire, and Burkina Faso, with a population of approximately 34.4 million (2024), has made significant strides towards democracy and economic progress. However, despite these advancements, poverty remains a critical issue, with a substantial portion of the population still struggling to meet basic needs.
This article delves into the poverty rates in Ghana, examining the key findings of the national Multidimensional Poverty Index (MPI) and other relevant statistics to provide a comprehensive understanding of the situation.
Map of Ghana
Economic Progress and Persistent Poverty
Ghana attained middle-income status in 2011, marking a significant milestone in its economic and social development. Despite this achievement, more than 20% of the population continues to experience poverty, with rates exceeding 50% in northern regions.
Recent Economic Challenges
In 2022, a combination of policy challenges and external factors contributed to a macroeconomic crisis, resulting in the closure of international markets, depreciation of the cedi, increased inflation, and decreased private credit due to domestic borrowing. Growth fell to 3.8% (2022); debt reached 92.6% of GDP. Ghana launched an IMF-supported recovery program, including comprehensive debt restructuring.
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Stabilization has improved conditions, with 2024 growth at 5.7% and 2nd quarter of 2025 real GDP up 6.3% year on year, led by services and agriculture. The cedi appreciated sharply, supported by policy tightening and improved reserves. Inflation eased to 11.5% in August 2025. The external position strengthened, with a current account surplus and rising reserves.
Fiscal adjustment in 2025 aims for a 1.5% GDP primary surplus, with spending restraint and no new arrears. Financial soundness is broadly stable, though Non-Performing Loans remain high and with real private credit growth being negative. Output growth is projected to soften to 4.3% in 2025 as fiscal adjustment and global uncertainty weigh on demand.
Medium-term prospects will be dependent on stabilization, reforms, and new oil production. Lower inflation and increased growth in agriculture and services should reduce the Low- and Middle-Income poverty rate to 53.3% by 2025.
The Multidimensional Poverty Index (MPI)
To gain a more nuanced understanding of poverty, Ghana has adopted the Multidimensional Poverty Index (MPI), which tracks twelve indicators relating to three dimensions: Living Standards, Education, and Health. This index provides a tool to coordinate the efforts of government stakeholders towards the social progress of individuals and households in line with meeting the 2030 Sustainable Development Goals (SDGs) in Ghana.
Key Findings of the MPI Report
The Ghana MPI was developed by the Ghana Statistical Services with support from the German Agency for International Cooperation (GIZ), the United Nations Development Programme (UNDP), the MPI National Steering Committee, and the University of Cape Coast. Technical support was provided by the Oxford Poverty and Human Development Initiative (OPHI) at the University of Oxford.
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- The incidence of poverty (H) in Ghana was 45.6%, while the average intensity (A) was 51.7%.
- The Multidimensional Poverty Index (MPI), which is the product of H and A, was 0.236.
- More people are living in multidimensional poverty (45.6%) than monetary poverty (23.4%), but 19.3% of the population were experiencing both monetary and multidimensional poverty.
- 64.6% of rural populations in Ghana were experiencing multidimensional poverty, compared with 27.0% of urban populations.
The report uses data from the seventh round of the Ghana Living Standards Survey conducted between 2016/2017 survey periods. The report also employed harmonised datasets from the Ghana Multiple Indicator Cluster Surveys conducted in 2011 and 2018 for trend analyses.
Beneficiaries Experiences with Social Protection Programmes for Poverty Reduction in Ghana - IMANI
Monetary Poverty vs. Multidimensional Poverty
Poverty measures until recently, focused solely on income deprivation as an assessment of the living conditions and general wellbeing of any population. Although, monetary poverty is closely associated with socioeconomic status, it is now widely recognized that poverty is multifaceted or multidimensional.
In Ghana, more people are living in multidimensional poverty (45.6%) than monetary poverty (23.4%), but 19.3% of the population were experiencing both monetary and multidimensional poverty.
Inequality and the Distribution of Wealth
Despite being among the 10 fastest-growing economies in the world in 2018 and currently the second-largest economy in West Africa, Ghana faces significant inequalities. There are disparities between the south and the north, where the majority of the population lives on less than $1 a day. Inequalities between women and men also continue to be very high. One of the richest men in Ghana earns more in a month than one of the poorest women could earn in 1,000 years. Between 2006 and 2016 the country saw 1,000 new US dollar millionaires created, but only 60 of these were women.
Poverty Rate in Ghana
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Oxfam's Role in Ghana
Oxfam has been working in Ghana since 1985, contributing to efforts to reduce poverty and inequality. The agricultural sector employs over 41% of the active population.
Table: Key Poverty Indicators in Ghana
| Indicator | Value |
|---|---|
| Incidence of Poverty (H) | 45.6% |
| Average Intensity of Poverty (A) | 51.7% |
| Multidimensional Poverty Index (MPI) | 0.236 |
| Rural Population in Multidimensional Poverty | 64.6% |
| Urban Population in Multidimensional Poverty | 27.0% |
| Monetary Poverty Rate | 23.4% |
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