Poverty Dips as Ghana’s Social Safety Nets Deliver Relief

Ghana’s poverty rate has inched down from 26.4% in 2023 to 25.9% in 2024, according to the latest review by the International Monetary Fund (IMF). While the drop may appear modest, it represents a meaningful gain for thousands of Ghanaian families striving to meet daily needs in an economy where every cedi counts.

At the heart of this progress lies a combination of stronger economic growth, particularly in the services and agriculture sectors, and increased investment in social protection programs aimed at cushioning the country’s most vulnerable.

For ordinary citizens like farmers in the Upper East, market women in Kumasi, and single mothers in Accra’s inner cities, this shift is more than just statistics. It reflects government efforts to scale up interventions such as the Livelihood Empowerment Against Poverty (LEAP), the Ghana School Feeding Program (GSFP), the National Health Insurance Scheme (NHIS), and the Capitation Grant which are programs many low-income families rely on for food, education, and healthcare.

“The government is redoubling efforts to expand social spending and shorten delays in releasing budgeted funds to beneficiaries,” the IMF noted in its fourth review of Ghana’s Economic Credit Facility. The 2025 national budget has increased the share of GDP allocated to social protection to 0.91%, up from 0.57% in 2024.

With support from the World Bank, Ghana is set to expand LEAP coverage from 350,000 to 400,000 households by September 2025. This expansion will be inflation-indexed to ensure recipients can continue meeting basic needs as prices fluctuate.

More funding has also been earmarked for the School Feeding Programme to address high food inflation and keep children in school, while the NHIS will see enhanced support for vaccine procurement and the rollout of new health initiatives.

While Ghana still has a long way to go to meet its Sustainable Development Goals on poverty reduction, this latest dip in the poverty rate signals that carefully targeted policies, when implemented well, can make a tangible difference in the lives of the most economically challenged.

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