Ghana will commit $10 billion over four years from 2027 to a locally financed “New Economy” programme aimed at raising production, exports and employment, Finance Minister Cassiel Ato Forson announced on Thursday while presenting the 2027 budget. The initiative will focus on commercial agriculture, energy infrastructure, technology, textiles and garments, and value addition to critical minerals, among others. Hon. Ato Forson told Parliament that government will safeguard stability, deliver strategic infrastructure, develop bankable projects and create predictable conditions for businesses to thrive.
The budget forecasts GDP growth of 5.2% next year, up from 4.8% in 2026, and a cash-based fiscal deficit of 3.6% of GDP, down from 4% this year. Government also intends to keep inflation within a band of 8%, plus or minus 2 percentage points. This is the first budget since Ghana completed a $3 billion IMF support programme, under which the economy improved significantly. The oil, gold and cocoa producer sought IMF assistance in 2022 after debt-servicing costs surged following years of overspending, the COVID-19 pandemic, Russia’s invasion of Ukraine and high global interest rates. Inflation, which peaked at 54.1% in December 2022, eased sharply over the three-year programme, dropping to a low of 3.2% in March this year, though it has risen slightly since.
Hon. Forson also revealed that government will redeem GH¢29 billion ($2.48 billion) of Domestic Debt Exchange Programme bonds due in February 2027 ahead of schedule, with the repayment taking effect immediately. He further announced plans to repay by December 31 the second Eurobond restructured in 2024 and due to mature in January 2027. Government expects the early redemptions to retire more than GH¢36 billion of debt ahead of time. The West African nation is still working closely with the IMF through a three-year Policy Coordination Instrument, an arrangement that involves no funding but includes regular IMF reviews and can help signal commitment to reforms and reassure investors.
