2027 Budget: How Mahama plans to turn Ghana’s fortunes with $10bn ‘New Economy’ plan

Ghana’s next phase of economic management is expected to place greater emphasis on what the economy produces, how much it processes locally and the jobs its industries can create, as the government prepares to roll out a US$10 billion investment programme over four years.

The proposed New Economy programme, covering 2027 to 2030, is intended to move the country beyond the immediate task of restoring economic stability and towards expanding productive capacity.

It is expected to feature prominently in the 2027 Budget, which Finance Minister Dr Cassiel Ato Forson is scheduled to present to Parliament on Thursday, November 12.

The initiative comes after a period of improvement in some key economic indicators. Ghana completed the final review of its International Monetary Fund (IMF) programme in July 2026, recorded economic growth of six per cent in the second quarter and saw annual inflation fall to 5.2 per cent in September.

The government now wants those gains to support a broader transformation of the economy, with investment directed towards industries that can produce goods locally, generate export earnings and provide employment.

Announced by President John Dramani Mahama, the New Economy programme is built around seven priority areas: macroeconomic stability, commercial agriculture and agribusiness, energy, critical minerals, textiles and garments, tourism and the creative economy, and pharmaceutical manufacturing.

The ambition is to tackle longstanding constraints on production, including expensive credit, unreliable or costly energy, inadequate processing facilities and heavy dependence on imported goods.

For government, the next measure of economic progress will therefore be the extent to which improved stability translates into better opportunities for businesses, farmers and workers.

Agriculture and agro-processing are expected to receive considerable attention under the programme, as the government seeks to increase domestic food production and expand the capacity to process agricultural produce.

Oil palm and other commercial farming activities are among the areas identified for development. The intention is to strengthen the links between farming, storage, processing and distribution, allowing more value to be retained within the country.

The energy sector is another major priority. Manufacturers and other businesses continue to regard the cost and reliability of electricity as important factors in their ability to expand operations. Proposed reforms and investment are expected to address some of these difficulties and provide a more supportive environment for industrial activity.

In the minerals sector, the programme seeks to change the pattern of exporting raw materials with limited processing in Ghana. Greater domestic value addition, particularly in critical minerals, could support the development of new industries and create employment beyond extraction.

The textile and garment industry is also earmarked for renewed attention. Expanding local production could strengthen the manufacturing base, provide opportunities for workers and businesses, and support domestic supply chains.

Tourism, culture and the creative arts form another pillar. The government wants to increase the contribution of these industries to national output and foreign exchange earnings by supporting tourism and hospitality businesses as well as creative-sector enterprises.

The proposed pharmaceutical manufacturing hub is intended to strengthen the production of essential medicines locally. Reducing dependence on imported pharmaceutical products is a key objective, while the longer-term ambition includes developing Ghana into a supplier to other markets in the region.

Macroeconomic stability completes the seven pillars. The government considers continued fiscal discipline and a predictable economic environment necessary to attract investment and sustain the expansion of productive industries.

The proposed investments could have implications for several sections of the economy.

Young people stand to benefit if the targeted industries expand and create opportunities in farming, manufacturing, pharmaceuticals, textiles, tourism and related services.

Farmers and agribusiness operators could gain from investment in irrigation, storage, transport and processing infrastructure, while manufacturers may benefit from improved energy supply and access to financing.

Local businesses could also find opportunities in supplying goods and services to expanding industries.

For the wider economy, a stronger domestic production base could help reduce imports, improve export performance and increase foreign exchange earnings.

However, the expected gains will depend on the projects selected, the distribution of funds and whether the investments are implemented effectively. The number of jobs created and the extent to which local businesses participate will be important measures of progress.

The relationship between the New Economy programme and the government's 24-Hour Economy policy will be another issue requiring clarification in the Budget.

Both initiatives have production and employment creation at their centre, with overlapping interests in agriculture, manufacturing, pharmaceuticals and energy.

The 24-Hour Economy policy is designed to encourage businesses and public institutions to operate in three eight-hour shifts. It envisages incentives such as reduced electricity costs, tax relief, financing support and improved security to encourage businesses to extend their operating hours.

The New Economy programme, on the other hand, identifies sectors for investment and sets out a proposed financing framework to support their development.

The two policies could reinforce each other. Investment in factories, processing facilities and other productive infrastructure under the New Economy programme could provide the capacity for businesses to expand their operations under the 24-Hour Economy policy.

But the government will need to explain how the initiatives will work together, particularly in the areas of funding, project selection, institutional oversight and performance measurement.

The 24-Hour Economy Authority Bill was signed into law in February 2026, establishing an institutional framework for the policy. Government has also announced initial implementation measures, including a downstream petroleum pilot.

The Budget will offer an opportunity to provide a clearer picture of progress, including the businesses participating, the incentives made available and the employment opportunities generated.

Beyond the seven priority sectors, the proposed financing arrangements will be central to determining whether the New Economy programme can deliver on its objectives.

The government intends to commit 1.5 per cent of gross domestic product (GDP) annually from 2027 to 2030, with the overall programme expected to mobilise approximately US$10 billion over the period.

It also proposes raising an additional 0.5 per cent of GDP through revenue measures and reducing the primary surplus target from 1.5 per cent to 0.5 per cent of GDP to create more room for investment.

The proposed approach is intended to make additional resources available for productive activities while supporting the government's wider economic agenda.

However, questions remain about how the funds will be distributed among the seven pillars, which projects will receive priority and how much financing will come from private investors and development partners.

The proposed reduction in the primary surplus target also raises questions about the implications for fiscal discipline and debt sustainability. Government will have to demonstrate how increased investment spending can be accommodated without undermining the stability achieved under the recovery programme.

For businesses and investors, the broad policy direction is only the starting point. They will be looking for details of the projects to be financed, the incentives available, the role of private-sector investors and the timelines for implementation.

The Budget is also expected to shed light on how the New Economy programme will build on existing industrialisation policies and avoid duplication of projects and institutional responsibilities.

A clear account of how government intends to monitor spending and measure results will be equally important.

The programme's success will not be judged by the US$10 billion figure alone. Its real test will be whether factories expand, agricultural output rises, more goods are processed locally and businesses create jobs that can be sustained.

Ghana has made progress in restoring some measure of economic stability. The challenge now is to turn that improvement into productive investment and broader economic opportunity.

The 2027 Budget will be the first major indication of how the government intends to make that transition.