News Guide Africa

Category: News

  • Ghana’s Top Academics Speak Out Against Over-Reliance on Bretton Woods Institutions

    Ghana’s Top Academics Speak Out Against Over-Reliance on Bretton Woods Institutions

    Two prominent Ghanaian academics, Emeritus Professor Ernest Aryeetey and Professor Aaron Mike Oquaye, have raised concerns about the country’s over-reliance on Bretton Woods institutions, specifically the International Monetary Fund (IMF) and the World Bank, for policy direction, criticizing successive governments for failing to take ownership of Ghana’s economic reform agenda, and instead relying on external consultants to shape the country’s development strategy.

    Professor Aryeetey argues that these consultants often bring perspectives based on their own experiences, which may not fit Ghana’s unique context, and that the country has not invested enough in developing its own technical capacity to design and execute economic transformation policies.

    “In a way, when we went to the Washington Group to seek support for what we were doing, we didn’t always go to them with a clear plan of what we wanted,” the former Vice Chancellor of the University of Ghana said. “We often went to say something like we want to do something about agriculture, and they would say okay fine, we’ll send you some experts to come and help you.”

    Prof. Aryeetey explained that such experts, often from different countries, naturally bring perspectives based on their own experiences — which may not fit Ghana’s unique context. This, he said, is partly because the country has not invested enough in developing its own technical capacity to design and execute economic transformation policies.

    “These experts are coming from different countries; they are going to sell to you what they do in their own countries, and this is because we have not invested enough in the capacity of people who could tell the government how to transform our sectors,” he said.

    He stressed that for Ghana to make meaningful economic progress, it must build and rely on local expertise capable of defining and driving its own development vision.

    “You don’t let a World Bank consultant come and tell you what you need to do,” he noted. “You should be telling him or her, this is what I want to do — can you help me structure it, not ask him what should I do.”

    Prof. Aryeetey’s remarks reignite debate on the effectiveness of Ghana’s long-standing engagement with multilateral lenders and the broader question of whether externally driven economic prescriptions have truly served the country’s long-term development needs.

    Meanwhile, Prof. Oquaye asserts that IMF programs have imposed restrictive policies that weaken innovation and limit the government’s fiscal flexibility, failing to bring sustainable growth.

    Call for Homegrown Solutions

    Both professors emphasize the need for Ghana to build and rely on local expertise capable of defining and driving its own development vision.

    Prof. Oquaye suggests that Ghana should focus on effective use of its abundant natural resources, such as gold, oil, and diamond, to drive economic growth.

    They argue that Ghana should rethink its approach to economic management and seek homegrown solutions rather than relying on external institutions.

    Current Situation

    Ghana is currently implementing its 17th IMF-supported program, a US$3 billion Extended Credit Facility (ECF) aimed at restoring macroeconomic stability and ensuring debt sustainability.

    Some analysts have raised doubts about the government’s ability to exit the program within the scheduled timeframe of May 2026

     

     

  • Volta Economic Forum 2025: A New Era for Ghana’s Economic Development

    Volta Economic Forum 2025: A New Era for Ghana’s Economic Development

    The Volta Region is set to host the inaugural Volta Economic Forum 2025 this week, at the Reddington Beach Resort in Keta.
    This landmark event aims to position the region as Ghana’s next economic frontier, attracting local and international investors across key growth sectors.
    The Forum is a significant step towards unlocking the region’s economic potential and promoting sustainable development. With its rich resources and strategic location, the Volta Region is poised to become a major economic hub in Ghana
    With the theme “Harnessing the Volta Corridor Economic Potential for the 24-Hour Economy Take-off,” the Forum is designed as a strategic investment platform to attract both local and international investors across key growth sectors including energy, agribusiness, tourism, manufacturing, logistics and the blue economy.
    Organisers say the Forum goes beyond dialogue. It aims to chart a coordinated policy framework that aligns public and private sector priorities for inclusive and sustainable regional development.
    Dr. Elikplim Kwabla Apetorgbor, Volta Regional Commissioner of the National Development Planning Commission, described the upcoming Forum as “a defining moment and a call to action for investors and policymakers to unlock the region’s full potential.”
    According to him, Volta’s strategic coastal location, skilled workforce, and expanding infrastructure base make it a prime destination for investment and industrial growth under Ghana’s evolving 24-hour economy initiative.
    The Ghana Investment Promotion Centre (GIPC), through its flagship Investment Opportunity Mapping Project (IOMP), is spearheading this process by identifying and promoting localised economic potential across all 261 districts.
    The Volta Region, described by Regional Minister, Mr James Gunu as “a land of peace, purity, and possibility,” stands out for its fertile land, rich water bodies, and skilled human resource base. Over 700,000 hectares of arable land remain uncultivated, offering a vast canvas for agribusiness expansion.
    Through the Grow24 initiative, anchored in the 24-hour economy policy, the region is promoting mechanised farming, cold-chain systems, and farmer cooperatives to scale agricultural productivity.
    Key crops include maize, rice, cassava, coffee, tomatoes, and yams, while the Volta Lake supports a thriving aquaculture sector with opportunities in fish feed, processing, and packaging.
    Agro-processing industries, particularly in rice milling, cassava starch, tomato paste, and palm oil, are expanding under new partnerships.
    With its proximity to Togo and connection to the national transport network, Volta also serves as a strategic trade and logistics corridor, linking northern Ghana to export gateways through lake transport.
    Agriculture and agro-Industry:
    Volta’s soil fertility supports year-round cultivation of pawpaw, banana, coconut, maize, and yam. Rice farms at Aveyime, Weta irrigation projects, and cassava processing facilities are key investment-ready ventures. Cocoa and shade-tree agroforestry, citrus and honey production, and cassava-maize value chains also hold significant promise.
    Manufacturing and industrialisation:
    The region is home to Mayanar Fabrications Ltd., Hohoe Auto Industrial Park, and the Juapong Textiles Factory, with additional opportunities in quarrying and cement distribution through the Diamond Cement factory in Aflao. Under the MAKE24 Industrial Parks Programme, plans are underway for agro-processing, renewable energy, and textile clusters powered by solar and bioenergy.
    Renewable energy and sustainability:
    Partnerships involving Cotech Ghana Ltd., GreenTek Ventures, UHAS, and Ho Technical University are pioneering biogas digesters and solar-powered water systems. Hybrid solar grids at Aveyime demonstrate Volta’s capacity for clean, self-sufficient energy solutions.
    Service and hospitality sector:
    Volta’s emerging urban centres are ideal for private clinics, diagnostic centres, Business Process Outsourcing services, and hotels or conference venues. These facilities will complement regional industrialisation and tourism.
    Tourism, culture, and craftsmanship
    Volta’s natural and cultural landscapes remain among Ghana’s most scenic. Attractions such as Wli Falls, Mount Afadja, Tagbo Falls, Amedzofe, Mount Gemi, Tafi Atome, and the Likpe Ancestral Caves provide opportunities for eco-lodges, guided adventure tourism, and cultural experiences.
    In Vume, the region’s renowned pottery industry demonstrates a thriving craft tradition ripe for commercial expansion. Alongside Kpetoe’s kente weaving and Avatime’s handicrafts, these industries form the foundation of a creative economy that can blend cultural authenticity with export potential.
    From Kpeve’s panoramic highlands to Lake Volta’s scenic waterfront, opportunities abound in eco-resorts, leisure cruises, and sustainable tourism investments.
    Reviving legacy industries
    The government’s plan to revive the Hohoe coffee factory, originally established by Dr Kwame Nkrumah, underscores its commitment to rural industrialisation. Mr Gunu has assured coffee farmers of renewed government and investor support to restore commercial coffee farming and processing, with the aim of branding Ziavi Coffee as a unique regional product for domestic and export markets.
    These initiatives complement ongoing work in cassava and maize processing, cocoa fermentation, and agro-based manufacturing, offering investors ready markets and structured value chains.
    The roadshow framework and collaboration
    The Volta Regional Investment Roadshow will unfold over three days, beginning with courtesy calls to traditional leaders, media engagements, and project site visits. The central event at the University of Health and Allied Sciences, Ho, will feature stakeholder presentations, business-to-business (B2B) sessions, and project showcases linking investors with project developers.
    Participating partners include the Office of the Chief of Staff, 24-Hour Economy Secretariat, Ministry of Trade and Industry, Ghana Export Promotion Authority, Ghana Tourism Authority, Ghana National Chamber of Commerce and Industry and the Volta Regional Coordinating Council.
    Mapping Opportunities for Ghana’s Future
    The IOMP launched in July 2025, represents a bold shift toward evidence-based investment promotion. It aims to build a comprehensive database of verified district-specific opportunities to guide investor decisions.
    Speaking at the project’s launch, Chief of Staff, Mr Julius Debrah described it as “a turning point for Ghana’s development, ensuring that every Ghanaian has a fair chance to benefit from investment-led growth.”
    GIPC’s Chief Executive Officer, Mr Simon Madjie(Esq.), has been instrumental in driving this vision. With extensive experience in trade policy, law, and business networking, he has emphasised the need to grow both Local Direct Investment and Foreign Direct Investment. His approach centres on connecting Ghanaian enterprises with global markets through data, partnerships, and innovation.
    Mr Madjie explained that the IOMP is not only about identifying opportunities but ensuring that they translate into bankable projects that create jobs and improve livelihoods.
    The Volta Regional Investment Roadshow offers a gateway for investors seeking sustainable, high-impact ventures. With abundant natural resources, skilled labour, renewable energy potential, and strong government support, the Volta Region stands ready to drive Ghana’s next phase of inclusive growth.
    As Minister James Gunu affirmed, “The future of Ghana’s 24-hour economy begins here, in the Volta Region. Ghana is open for business again. Visit Volta, experience Ghana.”
  • Weak revenues and high wage pressures pose key fiscal risks to Ghana’s economy

    Weak revenues and high wage pressures pose key fiscal risks to Ghana’s economy

    The Bank of Ghana has identified weak revenue performance, pressures from employee compensation, and increasing energy sector payments as major fiscal risks that could impact the country’s economy for the rest of 2025.

    According to the central bank’s September 2025 Monetary Policy Report, the conclusion of external debt restructuring negotiations may also create short-term external payment challenges, potentially affecting the local currency.

    The fiscal policy implementation for January-July 2025 showed significant improvement, with a primary balance surplus of 1.0% of Gross Domestic Product, exceeding the target surplus of 0.5%. However, total revenue and grants recorded shortfalls in all broad categories, including non-oil tax revenues, oil and gas receipts, and Energy Sector Levy Account (ESLA) receipts.

    To mitigate these risks, the Ministry of Finance has reaffirmed its commitment to maintaining budget credibility through realistic revenue targets, disciplined expenditure, and transparent fiscal operations. “We are determined to ensure that every cedi allocated in the budget corresponds with actual revenue performance and that we spend within our means,” said Deputy Finance Minister Thomas Nyarko Ampem.

    “The Ministry of Finance’s commitment to budget credibility is crucial for restoring public and investor confidence in government finances. The 2026 national budget, set to be presented in November, is expected to focus on fiscal consolidation, job creation, and sustainable growth.”

  • Ghana’s policy rate remains high …ranks 3rd in Sub-Saharan Africa

    Ghana’s policy rate remains high …ranks 3rd in Sub-Saharan Africa

    Ghana retains its position as the country in Sub-Saharan Africa with the third highest policy rate, according to the World Bank’s October 2025 Africa Pulse Report.

    Despite a 7.5 percentage point reduction in the monetary policy rate since January 2025, Ghana’s benchmark rate still stands at 21.5%, although this is the lowest since October 2022.

    The Bank of Ghana has attributed the cut in the policy rate to a sharp fall in inflation which is currently hovering in the single digit bracket. Countries like Kenya, Mozambique, Lesotho, and South Africa have either cut interest rates or paused contractionary monetary policies, while Mauritius and Zambia have raised rates due to inflation concerns.

    The World Bank warns of potential headwinds from global economic uncertainty, commodity price fluctuations, and domestic conflicts that may heighten inflationary pressures.

    Analysts have warned that Ghana’s high policy rate may impact businesses and individuals seeking loans, as borrowing costs remain elevated compared to regional peers. Indeed, the central bank’s decision to cut rates aims to stimulate economic growth while maintaining inflation control

    “Other central banks in the region have recently raised rates due to a slight resurgence of inflation this year, namely Mauritius and Zambia”, the report stated.

    It continued that potential headwinds from global economic uncertainty including sharp fluctuations in commodity prices and restrictive trade policies, domestic and regional conflicts and political instability as well as fiscal slippages may heighten inflationary pressures and risk delays in monetary policy normalization.

    The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) in September 2025 cut the rate at which it lends to commercial banks by 350 basis points to 21.5%, the lowest since October 2022.

    The central bank attributed the cut in the rate to sustained disinflation, robust growth and stronger external buffers.

     

  • Ghana’s energy access nears 90%, … ASEC calls for hybrid approach to achieve universal coverage

    Ghana’s energy access nears 90%, … ASEC calls for hybrid approach to achieve universal coverage

    Ghana’s energy access rate has reached nearly 90%, making it the second highest in West Africa, just behind Cape Verde with 98%.

    According to Ing. Justice Ohene-Akoto, Executive Director of the Africa Sustainable Energy Centre (ASEC), this progress is commendable, but more needs to be done to achieve full universal coverage.

    Speaking on Joy News’ Market Place, Ing. Ohene-Akoto highlighted the importance of adopting a hybrid approach to achieve universal energy access. He cited examples from North African countries like Morocco, Egypt, and Algeria, which have achieved universal access within a relatively short period. Morocco’s investment in rural electrification and large-scale renewable energy projects was particularly noteworthy, enabling the country to export power to Europe.

    ASEC’s latest Energy Outlook report emphasizes the need for Ghana to explore hybrid models that combine sustainable oil and gas development with expanded renewable energy access. Ing. Ohene-Akoto stressed the importance of investing in carbon technologies and renewable energy to achieve a sustainable energy future.

    Ghana’s Energy Minister, Dr. Matthew Opoku Prempeh, had earlier stated that the country is expected to reach 90% electricity access by the close of next year, with renewable energy playing a key role in the country’s energy mix. The government aims to increase renewable energy’s share of the generation mix to 20% by 2030.

    To achieve universal energy access, Ing. Ohene-Akoto urged authorities to prioritize four critical areas:
    – Technology and Innovation: Developing and implementing cutting-edge technologies to support renewable energy development.
    – Policy Reform: Creating policies that encourage investment in renewable energy and address grid instability challenges.
    – Sustainable Business Models: Developing business models that promote sustainable energy development and reduce environmental impact.
    – Environmental Friendliness: Ensuring that energy development is environmentally friendly and sustainable.

    By adopting a hybrid approach and prioritizing these critical areas, Ghana can achieve energy security and lead in clean energy across Africa.

     

  • Jobs availability slumps by 10% as at Aug. 2025 – BoG

    Jobs availability slumps by 10% as at Aug. 2025 – BoG

    The number of jobs advertised in selected print and online media, which partially gauges labour demand in the economy, decreased in August 2025, data from the Bank of Ghana has revealed.

    This is relative to what was observed in the corresponding period a year ago.

    In total, 2,799 job adverts were recorded as compared with 3,123 for the same period in 2024. This indicated a decline of 10.4% year-on-year.

    Conversely, on a month-on-month basis, the number of job vacancies in August 2025 improved by 3.6% from the 2,703 jobs advertised in July 2025.

    Cumulatively, for the first eight months of 2025, the total number of advertised jobs remained largely unchanged at 24,106 compared to 24,428 recorded during the same period in 2024.

    Meanwhile, the total number of private sectors SSNIT contributors, which partially gauges employment conditions, improved by 3.5% to 1,089,965 in July 2025, from 1,053,235 for the same period in 2024.

    On a month-on-month basis, the total number of private sectors SSNIT contributors remained largely unchanged from the 1,088,458 individuals recorded in June 2025.

  • Cedi set for historic rebound …as it appreciates 36% YTD

    Cedi set for historic rebound …as it appreciates 36% YTD

    Ghana’s local currency, the cedi, is poised to make history as it records its first-ever annual appreciation against the US dollar since its redenomination in 2007.

    According to Bloomberg data, the Cedi has appreciated by about 16 percent against the U.S. dollar from the start October to date, erasing the third quarter depreciation of 14 percent.

    Data from commercial banks now show that the cedi’s year-to-date (YTD) appreciation stands at 37%. This shows a stark contrast to the average annual depreciation of 14.9% between 2008 and 2024.

    A closer analysis of price quotes from commercial banks since the start of the year also revealed that within a single week from October 13 to 17, 2025, the cedi appreciated by 9.5% against the dollar. The cedi’s remarkable turnaround is attributed to a combination of disciplined monetary policy, enhanced foreign exchange inflows, and record interventions by the Bank of Ghana. Strong inflows from gold and cocoa exports, as well as improved fiscal management under the IMF Extended Credit Facility (ECF) programme, have also contributed to the cedi’s surge.

    The cedi’s performance has long been a key barometer of Ghana’s economic health, often influencing inflation expectations, credit ratings, and investor sentiment. The start of the last two IMF programmes, implemented in 2015 and 2023 respectively, both coincided with periods of sharp currency depreciation.

    “I’ve seen this for many years. I started central banking some 30 years ago. The phenomenon [of dollarisation] has been there, and so we are tackling it to make the local currency the sole legal tender,” Bank of Ghana Governor, Dr. Johnson Asiama, speaking at the IMF/World Bank Spring Meetings in Washington, said noting that, his tenure is focused on building a central bank that is “agile and future-ready” while making the cedi the currency of choice for domestic transactions.

    He acknowledged that dollarisation remains a major challenge, noting that the widespread use of foreign currency undermines the effectiveness of monetary policy and weakens confidence in the cedi. Nonetheless, he expressed optimism that the reforms underway will consolidate gains made so far.

    Key Factors Driving the Cedi’s Appreciation:

    The Bank of Ghana’s strategic interventions in the foreign exchange market have helped stabilize the currency as well as facilitate record foreign exchange inflows.

    Ghana’s total export revenue is projected to reach US$25 billion in 2025, a 30% increase compared to the previous year, with gold exports expected to account for over 60% of the total.

    Also, the government’s commitment to fiscal discipline and economic reforms has boosted investor confidence alongside the IMF’s Extended Credit Facility programme which has provided financial support and stability to Ghana’s economy.

    Outlook

    The cedi’s appreciation has strengthened Ghana’s credit outlook, with the debt-to-GDP ratio falling below 50% for the first time in years.

    Dr. Asiama has expressed optimism that the reforms underway will consolidate gains made so far and make the cedi the currency of choice for domestic transactions

    According to the Ghana Association of Banks, a key factor has been the Bank of Ghana’s decision to revise its forex market interventions, moving from weekly auctions to spot sales for commercial banks, enhancing market efficiency.

    Its Chief Executive, John Awuah, told Joy Business that the cedi’s rebound reflects “recent market developments,” also linking the performance to the Bank of Ghana’s review of the Net Open Position (NOP) for commercial banks.

    Market analysts further believe that the cedi’s strength is being supported by tight fiscal and monetary policies, rising export revenues, and improved investor confidence.

    They also argue that, given recent market reforms, the cedi’s strong performance may not end anytime soon.

    Central Bank’s FX market intervention

    Earlier this month, the Governor of the Bank of Ghana, Dr. Johnson Asiama, announced that the central bank would begin foreign exchange (FX) intermediation under the Domestic Gold Purchase Programme from October 2025, with plans to sell up to $1.15 billion during the month.

    These sales are being conducted on a spot basis through twice-weekly, price-competitive auctions open to all licensed banks.

    Dr. Asiama explained that the initiative aims to deepen the interbank FX market, enhance price discovery, and reduce volatility all while maintaining transparent and market-neutral operations.

    He emphasised that the overarching goal remains to stabilise the exchange rate, ensure a level playing field, and support sustainable liquidity in the banking system.

    BoG to achieve full de-dollarisation

    Consequently, Dr Asiama notes that one of his top priorities is to end the long-standing reliance on the U.S. dollar for domestic transactions.

    He wants to make the Ghana cedi the sole currency of trade and payment in the country describing the persistence of dollar use in Ghana’s economy as a structural weakness that undermines the effectiveness of monetary policy.

    “So, my mandate is clear to achieve price and financial stability. It’s been eight months now. I believe we are on course. We are on course towards achieving that. But a couple of things bother me.

    “First of all, the issue of dollarisation. You know, I’ve seen this for many years. I started central banking some 30 years ago. The phenomenon has been there, and so we are tackling it,” he said.

     

    By Adnan Adams Mohammed

     

     

  • Ghana’s improving macroeconomic stability convinces Fitch to revise growth forecast to 4.9%

    Ghana’s improving macroeconomic stability convinces Fitch to revise growth forecast to 4.9%

    Ghana’s economic prospects are looking up, with Fitch Solutions revising the country’s 2025 growth projection upward to 4.9 percent from its earlier projection of 4.2 percent.
    As contained in its September 2025 Monthly Outlook, the 0.7% optimistic upward revision is driven by improving macroeconomic stability, supported by easing inflation and a relatively firm cedi.
    This is 0.5% more than the Government of Ghana’s projection of 4.4% as captured in the 2025 Budget: 0.6% higher than the World Bank’s revised estimate of 4.3% and 0.9% higher than the International Monetary Fund’s growth projection of 4.0%.
    Fitch’s revision signals renewed investor optimism about Ghana’s economic prospects, anchored on improving price stability, resilient agriculture, and stronger policy credibility.
    Ghana’s economy remains on a steady recovery path, despite challenges such as fiscal consolidation, still high lending rates, and flat oil production. The stable currency and lower global energy prices are expected to boost consumer confidence and domestic demand.
    A key driver of the economy, the agricultural sector, has been a top performer, expanding by 8.0% over the one year up to July 2025, driven by improved agricultural output. This growth is expected to continue, contributing to the country’s economic stability.
    Challenges Ahead:
    Meanwhile, some economists warn that sustaining the momentum will depend on fiscal restraint, continued structural reforms, and a stable exchange rate environment and have therefore urged the economic managers to diversify Ghana’s economic production base to generate sustainable growth, citing the need to support local farmers and drive demand for Ghanaian produce.
    “Our production base is too narrow. We import almost everything. And as the growing middle class comes up, we are becoming much more import dependent rather than self-sufficient”, Professor Festus Ebo Turkson said while speaking during a UK-Ghana Chamber of Commerce and Deloitte Ghana seminar last week, cautioning that, Ghana’s economy remains too dependent on imports and vulnerable to external shocks.
    Prof. Turkson argued that diversifying Ghana’s economy production base starts with supporting local farmers and driving deliberate demand for Ghanaian produce. This demand, he said, must not be left to market forces but should be intentionally cultivated through government policies.
    “Adding value to and demanding local produce will boost their productivity. Once we produce enough for export, we can then produce for import substitutes,” he noted.
    This falls directly in line with the call made by the Government Statistician on the government to expand local food production, maintaining effective policy coordination among others to anchor the current success in achieving single-digit inflation.
    Dr. Alhassan Iddrisu emphasised that the achievement, while significant, is only the beginning.
    “We can actually do this by continuing to do what we are doing, which is keeping the inflation down,” he said on Channel One TV’s The Point of View on Wednesday October 8, adding “This will include keeping public spending discipline, supporting local food production and also maintaining policy coordination.”
    He warned against complacency, noting that although inflation has fallen, prices are still rising just at a slower pace.
    “This is not the time to relax at all. In fact, inflation of 9.4% still means that on average, we are seeing the general price level increasing by 9.4% between September of last year and September of this year,” he explained.
    Dr. Iddrisu described the return to single-digit inflation as progress, but said the real challenge now is ensuring that it can be sustained over the long term.
    On human capital, Prof Turkson explained that Ghana’s human resource quality has improved from a “low” to a “moderate” scale over the past two decades a good foundation for light manufacturing.
    “What we need now is to tailor education to the needs of industry,” he said, calling for investment into soft infrastructure to enhance youth training and promote the use of appropriate, labour-intensive technologies.
    Incentivizing firms to create jobs
    Prof Turkson further suggested that providing incentives for firms that adopt technology while creating jobs would guarantee a steady stream of revenue needed to fuel further growth.
    “This is the way we can develop. That is what we call transformation,” he concluded.
    Enhancing Ghana’s investment climate
    Meanwhile, Cheryl Otoo, a Senior Manager at Deloitte Ghana, highlighted Ghana’s regulatory complexity and infrastructure deficits as two of the biggest constraints to investment. To this, Wisdom Kpano, Partner at Deloitte Ghana, recommended that the government channel resources into agriculture and agro-processing, renewable energy, and oil and gas – sectors with high potential for inclusive growth.
    Also, Nicolas Jørgensen Gebara, CEO of the European Chamber of Commerce in Ghana, pointed to mining and digital transformation, especially in the context of the government’s 24-Hour Economy Policy, while Osman Aziz, Senior Investment Officer at Venture Capital Trust Fund, underscored the need to bridge the gap between education and industry needs.
    For Prof. Turkson, resolving these systemic bottlenecks and creating an enabling environment for private sector growth must be central to government policy.
    Outlook
    The Cedi’s appreciation has strengthened Ghana’s credit outlook, with the debt-to-GDP ratio falling below 50% for the first time in years. Bank of Ghana Governor, Dr. Johnson Asiama ,has noted, expressing optimism that the reforms underway will consolidate gains made so far and make the cedi the currency of choice for domestic transactions
    While Fitch expects growth to hold at around 5.0% in 2026, underpinned by falling inflation, anticipated monetary easing, and increased public expenditure as Ghana’s IMF-supported programme winds down, the World Bank projects growth to strengthen further to 4.6% in 2026 and 4.8% in 2027, underscoring a positive medium-term outlook.
    Also, as Fitch projects inflation to decline to 8.0% by the end of 2025, down from 11.5% in August, marking the lowest rate in four years, the World Bank expects Ghana’s inflation to close 2025 at 15.4%, a projection that contrasts with the official rate of 9.4% as at September 2025, down from 21.5% a year earlier.
    The Bank’s forecast appears conservative, given the country’s recent disinflation trend.
    Nonetheless, the report expressed optimism that inflation will continue easing, dropping to 9.4% in 2026.
    However, the Bank of Ghana, in its latest Monetary Policy Report, also reaffirmed expectations for inflation to remain within the single-digit range by year-end.
    By Adnan Adams Mohammed
  • Govt juggles demands of local stakeholders, IMF towards 2026 budget

    Govt juggles demands of local stakeholders, IMF towards 2026 budget

    Ministry of Finance officials, led by the Minister, Dr Cassiel Ato Forson, will this week continue the intense work they engaged in last week towards preparing a national budget for 2026.

    The budget is expected to accommodate the key concerns and aspirations of a disparate plethora of stakeholders both local and international while presenting a workable blueprint for the completion of efforts towards the restoration of macroeconomic stability and the resumption of sustained growth.

    The budget will be presented to Parliament in about a fortnight’s time although no specific date has yet been announced.

    It was revealed last week by Deputy Finance Minister, Thomas Nyarko Ampem that the 2026 budget will build on very a very impressive macroeconomic performance for 2025 in which the economy is on course to achieve a primary balance surplus of 1.4% of GDP after incurring a deficit last year, an overall fiscal deficit of just 1.5%,(compared with 5.9% on cash basis an 4.8% on commitment basis in 2024) and a significant reduction in the public debt to 44.9% of GDP, down from 61.8% at the turn of the year.

    The construction of the budget is turning out to be a veritable juggling act because of the various priorities set by various stakeholder groups.

    Ghana’s government is preparing to table its 2026 fiscal year budget against the backdrop of ongoing fiscal consolidation, energy-sector arrears, and an IMF-supported reform programme that runs through to May 2026.

    While formal details are yet to be revealed, officials have consistently signaled a package centered on revenue mobilization, disciplined spending, and structural reforms particularly in the energy and state-owned enterprise sectors aimed at locking in disinflation and stabilizing growth.

    Stakeholders, however, are pressing for a different balance: tax relief to spur private-sector activity, faster arrears clearance, and targeted measures to ease the cost-of-living burden.

    On the fiscal side, policymakers are expected to prioritize a primary surplus target consistent with IMF benchmarks, with revenue measures that broaden the tax base rather than hike headline rates.

    Likely strategies include tighter enforcement of VAT and e-VAT systems, a continued clampdown on exemptions, and improved property rate collections through digital platforms. Selective excise adjustments on items such as alcohol, tobacco, and sugary drinks are also plausible, as are measures to strengthen customs valuation and reduce leakages at the ports.

    Officials have also hinted at keeping a lid on the wage bill’s growth while protecting core social programs, including cash transfers and essential health and education spending.

    Expenditure under the budget is expected to restrain goods-and-services outlays and prioritize capital spending with high multiplier effects, partly through Public Private Partnerships.

    A critical pillar is the energy sector: further steps to resolve legacy arrears, enforce cash waterfall mechanisms, and align tariffs with cost-recovery to prevent the re-accumulation of debt.

    Authorities are also likely to spotlight progress on domestic debt operations and external debt restructuring, framing 2026 financing around concessional inflows and a cautiously rebuilt domestic bond market.

    However, on their own part, industry groups are asking for the removal of certain taxes and levies that complicate compliance and suppress margins, a review of the VAT structure to reduce cascading, relief on import duties to lower input costs, predictable power, prompt payment of government arrears to suppliers, and targeted incentives for export-oriented processing.

    Labor unions are pressing for cost-of-living relief through upward adjustments to personal income tax thresholds to protect real wages, caution against new consumption taxes and predictable wage negotiations that reflect inflation through 2024.

    .Financial markets want a credible path to a durable primary surplus, a concrete plan to prevent re-accumulation of energy arrears, and steady progress on debt restructuring and domestic financial market normalization.

    To this end, as Finance Ministry officials crunch the numbers, they are also engaging in extensive stakeholder consultations with various business, labour and consumer groups in Ghana as well as the International Monetary Fund and other representatives of the country’s development partners.

    Last week’s stakeholders’ consultations brought together representatives over two days, from banking and non-banking financial institutions, think tanks, professional bodies, trade organizations, social partners, and other organized groups.

    Government is also engaged with the IMF because the three year Extended Credit Facility programme Ghana is undergoing does not expire until May next year and in the meantime the Fund’s Executive Board is yet to sign off on the 5th review for funds to be disbursed, and after that there is still a 6th and final review and subsequent funds disbursement on the schedule.

    Given that the IMF programme for Ghana is not set to expire until mid 2026, it is likely that the government will still be under some influence from the IMF in terms of fiscal policy and budgetary priorities.

    However, the extent of this influence will depend on the government’s willingness to comply with the IMF’s recommendations and the specific conditions set out in the program as it winds up.

    The Minister for Finance is required under Section 21 of the Public Financial Management Act, 2016 (Act 921), to prepare the annual budget in consultation with relevant stakeholders.

     

    By Toma Imirhe

  • President Mahama Pays Tribute to Nana Konadu, Pioneer of Women’s Empowerment in Ghana

    President Mahama Pays Tribute to Nana Konadu, Pioneer of Women’s Empowerment in Ghana

    President John Dramani Mahama has expressed deep sorrow over the passing of Ghana’s former First Lady, Nana Konadu Agyeman-Rawlings, describing her as a towering figure in the nation’s political and social history.

     

    On Thursday, October 23, 2025, the President received a delegation comprising her children and other family members, who officially informed him of her passing.

     

    Speaking later at the swearing-in ceremony of 37 new High Court judges at the Jubilee House in Accra, President Mahama called for a moment of silence in her memory.

     

    “May the Almighty God grant her peaceful rest in His bosom. Amen,” he said.

     

    Nana Konadu Agyeman-Rawlings, aged 76, passed away at the Ridge Hospital in Accra. She was widely recognised for her lifelong dedication to women’s empowerment, gender equality, and national development.

     

    Born on November 17, 1948, in Cape Coast, she attended Ghana International School and Achimota School, where she met her future husband, the late President Jerry John Rawlings. She later studied Art and Textiles at the University of Science and Technology (now KNUST) and obtained a diploma in Interior Design from the London College of Arts.

     

    Throughout her life, Nana Konadu pursued further studies in Personnel Management, Development Studies, and completed fellowships in Philanthropy and Nonprofit Leadership in the United States.

     

    She served as First Lady during two important eras in Ghana’s history first in 1979 under the Armed Forces Revolutionary Council (AFRC) and later from 1981 to 2001 under the Provisional National Defence Council (PNDC) and the Fourth Republic.

     

    In 1982, Nana Konadu founded the 31st December Women’s Movement, which became one of Ghana’s most influential women’s organisations. The movement empowered over two million women through programmes in education, entrepreneurship, family planning, and leadership development.

     

    Her advocacy for gender equality and social justice was instrumental in several major national reforms. She played a key role in Ghana’s ratification of the United Nations Convention on the Rights of the Child in 1991 and championed the Intestate Succession Law, which secured inheritance rights for widows and reformed discriminatory customary practices.

     

    In 2016, Nana Konadu made history as the first woman to contest the presidency of Ghana, running on the ticket of the National Democratic Party (NDP), which she founded after parting ways with the National Democratic Congress (NDC).

     

    Her enduring legacy lies in the generations of Ghanaian women she inspired to take up leadership roles and participate in governance a movement that significantly enhanced women’s representation in politics and public life across the country.