President John Dramani Mahama has declared that Ghana has entered a new economic phase following what he described as a successful period of economic stabilisation, with his government now shifting its attention towards growth, job creation and massive investment in productive sectors.
Speaking at a citizen engagement in Bolgatanga as part of his Resetting Ghana Tour of the Upper East Region, President Mahama said the government’s next major priority was to create opportunities for young people after restoring stability to the economy.
President Mahama said Ghana’s economic recovery has progressed at a pace that has surprised international institutions, including the International Monetary Fund and the World Bank.
“Indeed, a lot of people, including the IMF and the World Bank themselves, cannot believe how fast this recovery has occurred. But it has taken a lot of fiscal discipline, it has taken working at increasing revenue; it has taken, you know, working to cut down waste and all that. And that is what has helped for this recovery.”
President John Dramani Mahama
According to the President, the improvement did not happen by chance. He attributed the recovery to tighter fiscal management, stronger domestic revenue mobilisation and efforts to reduce waste in government.
His comments come as the government seeks to demonstrate that Ghana’s economic turnaround can be sustained while creating the conditions necessary for increased private sector activity and employment.
Government Highlights Reduced Borrowing
President Mahama also pointed to the government’s borrowing record as evidence of its commitment to fiscal discipline.
He said the government did not send any loan agreement to Parliament throughout the whole of last year and maintained that no loan agreement was submitted for approximately one and a half years until June this year. “Not one loan agreement.”
He explained that previous governments had often relied heavily on parliamentary approval of loans to finance government programmes, but his administration had largely relied on internally generated resources during the period under review.
The President said the first loan agreements submitted by his government were a $300 million World Bank project aimed at ending the double-track system in secondary schools and a $500 million feeder roads project.
“The first loan agreement that has been sent to Parliament are the 300 million World Bank Star-J project. That is to end double track in our secondary schools. And the second one is the 500 million dollar feeder roads project. Those are the first two loans since this government assumed office.”
President John Dramani Mahama
He said the government would continue to exercise caution in managing public finances. “And so we’ll continue to be very prudent in the management of the economy so that it can create the opportunities for our people,” he said.
Focus Shifts From Stability to Jobs
With the government declaring that the stabilisation phase has largely been achieved, President Mahama said the focus would now shift towards economic expansion and employment creation.
“Now that we’ve finished the stabilisation of the economy, our next focus is on creating jobs and opportunities for our young people. And so, with growth, we’ve finished stabilisation; we’re now looking at growth and job creation opportunities. That is our next target.”
President John Dramani Mahama
The President said the government would present a new policy framework to Parliament, known as the “New Economy”, designed to channel significant investment into seven strategic sectors.
Under the proposed programme, the government plans to invest $2.5 billion annually over the next four years, resulting in a total investment of $10 billion across the seven pillars.
Agriculture to Receive $5 Billion
Agriculture and agro-processing will be at the centre of the initiative, accounting for half of the planned $10 billion investment.
“But the biggest is agriculture and agro-processing. And that’s where the Upper East comes in. Agriculture and agro-processing is going to take 50% of that 10 billion investment. So 5 billion dollars is going to go into agriculture and agro-processing.”
President John Dramani Mahama
President Mahama assured residents of the Upper East Region that the area would receive its fair share of the planned investment.
The proposed agricultural investment is expected to support irrigation development, agro-processing and increased production, particularly during the dry season.
Tomato Production Gets Major Push
The government has already begun implementing some initiatives ahead of the broader New Economy programme.
President Mahama highlighted the tomato revitalisation project in the Upper East Region, which is expected to bring 2,500 acres of land under tomato cultivation.
He said the Pwalugu tomato factory would serve as the centre of the initiative, with government planning to rehabilitate the facility to process tomatoes produced locally.
The move could strengthen the connection between farming and industrial processing while creating new opportunities for farmers, processors, traders and young people.
Irrigation and Onion Production Targeted
The President also announced plans to complete the Tamne irrigation dam to support dry-season farming in four districts in the Bawku area.
Particular attention will be given to onion production, as the area is considered to have a comparative advantage in the crop.
The government wants to reduce Ghana’s dependence on imported onions from Niger by increasing domestic production.
President Mahama also pointed to the rehabilitation of the Vea irrigation facility, which covers about 850 acres.
“The Via irrigation is about 850 acres. It has not been rehabilitated for a long time, so right now we are working on it. And by next year, all the 850 acres will be brought under cultivation.”
President John Dramani Mahama
A New Chapter for Ghana’s Economy
The President’s announcement signals a major shift in the government’s economic strategy, moving from stabilisation towards aggressive investment, production and employment creation.
With agriculture and agro-processing receiving $5 billion under the proposed $10 billion New Economy initiative, the Upper East Region could become a major beneficiary of Ghana’s next phase of economic development.
The government’s ability to translate the planned investments into jobs, increased production and stronger local industries will be closely watched as Ghana enters what President Mahama describes as a new economic era.
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