KEY POINTS

• Ghana plans to invest US$10 billion over five years in nine sectors, with no new borrowing for the programme.

• Textiles, agriculture, pharmaceuticals and tourism are among the industries targeted to create jobs and expand production.

• Mahama also announced plans for domestic vaccine production and said lower Treasury bill rates could encourage private-sector lending.

President John Dramani Mahama has announced plans to invest US$10 billion over five years in nine sectors of Ghana’s economy, with the government pledging to finance the programme without taking on new loans.

The proposed New Economy Policy will allocate US$2 billion annually to productive industries expected to create jobs, expand local manufacturing and increase economic opportunities.

Mahama said the policy would be formally outlined when Finance Minister Cassiel Ato Forson presents the 2027 national budget.

“This is our own money. We are not going to borrow money for the New Economy Policy,” the president said.

He made the announcement during a courtesy call by traditional leaders from Ghana’s Western North Region, where he discussed the country’s economic recovery and plans to stimulate employment.

Nine sectors to drive job creation

The government intends to direct investment towards industries with the potential to generate employment and strengthen domestic production.

The sectors mentioned by Mahama include textiles and garments, agriculture and agribusiness, pharmaceuticals and tourism. The government has not yet publicly detailed all nine sectors or explained how the annual allocation will be distributed among them.

The initiative is expected to complement existing infrastructure projects and support businesses seeking to expand production, reach export markets and employ more workers.

Mahama said the administration was pursuing an economic model that would rely more heavily on domestic revenue rather than borrowing to finance public spending.

Government points to falling interest rates

The president said Ghana’s economy was recovering from the debt default and economic crisis that confronted his administration when it took office on January 7, 2025.

He cited an International Monetary Fund growth projection of 5.7 per cent, which he said was above the average forecast of about four per cent for sub-Saharan Africa.

Mahama also acknowledged external pressures, including rising petroleum prices linked to tensions between Iran and Israel.

According to the president, reduced reliance on domestic borrowing has helped bring Treasury bill rates down from approximately 29 per cent to around seven per cent.

He argued that lower government borrowing costs could encourage banks to lend more to private businesses, allowing companies to invest, expand their operations and recruit additional workers.

Mahama said the government was financing its expenditure through tax revenue and other funds entering the public treasury.

Construction and manufacturing already creating jobs

The president pointed to the government’s Big Push infrastructure programme as one of the initiatives contributing to employment growth.

He said construction projects had created hundreds of thousands of jobs, although he did not provide a detailed breakdown of the figures.

Mahama also cited a textile factory in northern Ghana that receives support from the Ghana Export-Import Bank. The facility produces garments for export to the United States and European markets and reportedly employs 2,300 people, about 80 per cent of whom are women.

The president said the factory operates under Ghana’s 24-hour economy model, which seeks to increase production and economic activity through extended operating hours.

The government hopes the New Economy Policy will build on such projects by directing investment towards industries that can generate employment and strengthen exports.

Ghana plans domestic vaccine production

Pharmaceutical manufacturing is another priority under the government’s economic transformation plans.

Mahama announced plans to establish a vaccine production hub in Ghana to reduce dependence on imported medicines and strengthen the country’s capacity to respond to future health emergencies.

He recalled the difficulties African countries experienced during the COVID-19 pandemic, when access to vaccines was limited as wealthier countries secured supplies.

The president said foreign pharmaceutical companies had expressed interest in a proposed pharmaceutical hub. According to him, the government has acquired land and provided supporting infrastructure, including roads, electricity and water.

The project forms part of the administration’s broader Accra Reset agenda, which aims to strengthen health sovereignty, improve investment in healthcare and reduce dependence on external suppliers.

Funding and implementation remain key tests

The proposed US$10 billion programme places job creation and productive investment at the centre of Ghana’s economic plans. Its success will depend on how the government raises and allocates the money, selects projects and measures the employment and economic benefits.

Although Mahama has pledged to finance the initiative without borrowing, further details are expected to clarify the funding arrangements, the nine sectors covered and the implementation timetable.

The 2027 budget is expected to provide more information about how the policy will be delivered over the five-year period.