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Ghana Beats Growth Target as Economy Surges 6.4%

Ghana’s economy has recorded a stronger-than-expected performance in the first half of 2026, with real GDP growth reaching 6.4% in the first quarter, surpassing the government’s full-year growth projection of 4.8%.

The impressive figures were announced by the Minister for Finance, Dr Cassiel Ato Forson, during the presentation of the Mid-Year Budget Review to Parliament, where he highlighted what he described as a major milestone in the government’s economic recovery programme.

According to the Finance Minister, Ghana has not only achieved its first-half targets but has exceeded several key economic benchmarks, reinforcing the government’s claim that fiscal reforms and economic management measures are yielding results.

“Mr. Speaker, Ghana has not merely met its first half-year target; it has exceeded it,” Dr Forson told Parliament.

The Minister said the latest economic indicators reflected stronger growth momentum, improved fiscal discipline, falling inflation, and increased resilience in the country’s external position.

Ghana’s Minister for Finance, Dr Cassiel Ato Forson

GDP Growth Surpasses Full-Year Projection

One of the biggest highlights of the Mid-Year Budget Review was Ghana’s economic expansion, which has already exceeded expectations for the entire year.

Dr Forson disclosed that overall GDP growth reached 6.4% in the first quarter of 2026, significantly higher than the 4.8% full-year target set by government.

The non-oil economy also recorded strong growth, expanding by 6.3% during the same period compared with the projected full-year target of 4.9%.

“Overall GDP growth was 6.4% in the first quarter of 2026, well ahead of the 4.8% full-year target,” the Minister stated.

He added that “Non-Oil GDP growth was 6.3% in the first quarter of 2026, well ahead of the 4.9% full-year target.”

The figures represent a major boost for government’s economic recovery narrative, especially after years of economic pressures marked by high inflation, currency instability, and fiscal challenges.

Inflation Drops by More Than Half

Beyond growth figures, Ghana has also recorded a sharp decline in inflation, providing relief to households and businesses. The Finance Minister revealed that inflation has fallen from 13.7% in June 2025 to 5.3% by the end of June 2026.

Ghana’s Minister for Finance, Dr Cassiel Ato Forson

This performance is significantly better than the government’s end-year inflation target of 8% plus or minus 1%. “Inflation has more than halved, falling from 13.7% in June 2025 to 5.3% by end of June 2026,” Dr Forson told Parliament.

The decline in inflation has been attributed to improved macroeconomic stability, tighter fiscal management, exchange rate improvements, and policy measures aimed at restoring confidence in the economy.

The Finance Minister said the achievement demonstrates that the government’s economic strategy is beginning to deliver measurable results.

Fiscal Balance Shows Stronger Position

The government’s fiscal performance for the first six months of 2026 also exceeded expectations, according to the Mid-Year Budget Review.

Dr Forson disclosed that the primary balance recorded a surplus of 0.9% of GDP on a commitment basis, placing Ghana firmly on track to achieve its end-year target of 1.5% of GDP.

He explained that the stronger fiscal outcome reflected continued commitment to expenditure controls and improved revenue mobilisation.

“Provisional fiscal outturn for the first half of 2026 was stronger than anticipated, indicating continued prudence in fiscal management and enhancing the government fiscal consolidation agenda.”
Dr Cassiel Ato Forson

Government’s total expenditure on a commitment basis stood at 8.0% of GDP by the end of June 2026, below the half-year target of 9.9% of GDP. Primary expenditure also remained lower than projected, recording 6.6% of GDP against a target of 8.1%.

Ghana’s Minister for Finance, Dr Cassiel Ato Forson

Interest Savings Boost Fiscal Space

Another major achievement highlighted by the Finance Minister was the reduction in interest costs. Interest payments amounted to 1.3% of GDP by June 2026, compared with a half-year target of 1.8%.

According to Dr Forson, the reduction represents savings of about 0.5% of GDP, driven by lower interest rates and improved debt management strategies.

“Interest costs at 1.3% of GDP, as at the end of June 2026, against the half-year target of 1.8% of GDP, indicating that we have saved on interest about 0.5% of GDP.”
Dr Cassiel Ato Forson

The savings provide government with additional fiscal flexibility to support priority programmes while maintaining budget discipline.

Reserves Strengthen Economic Confidence

Ghana’s external position also recorded significant improvement, with gross international reserves reaching five months of import cover by the end of June 2026.

The figure exceeded government’s target of maintaining at least three months of import cover. Dr Forson described the reserve position as evidence of improved economic stability and stronger protection against external shocks.

The combination of higher reserves, declining inflation, stronger growth, and improved fiscal outcomes has strengthened government’s argument that Ghana’s economy is firmly recovering.

Ghana’s Minister for Finance, Dr Cassiel Ato Forson

Government Highlights Reform Success

The Finance Minister credited the performance to what he described as difficult but necessary decisions implemented consistently by the administration.

“This performance reflects the resolve of this administration to make difficult decisions, implement them consistently, and maintain unwavering fiscal discipline.”
Dr Cassiel Ato Forson

With growth already exceeding expectations, inflation falling faster than projected, and fiscal indicators improving, the government is presenting the first half of 2026 as a turning point in Ghana’s economic recovery journey.

The coming months will determine whether the country can sustain this momentum and translate improved economic indicators into broader benefits for households, businesses, and investors.

READ ALSO: GH¢400m Set Aside To Expand Public Transport Fleet — Finance Minister

July 23, 2026
Ato Forson Unveils Reforms to Cut Procurement Timelines, Curb Single-Sourcing

Finance Minister Dr Cassiel Ato Forson has announced sweeping reforms to Ghana’s public procurement system while presenting the 2026 Mid-Year Budget Review to Parliament on Thursday, July 23, 2026, outlining measures designed to shorten procurement timelines, restrict single-source contracts and tighten rules governing restricted tendering.

Dr Ato Forson told Parliament that the government intends to pursue reforms across three distinct areas of public procurement, each aimed at addressing longstanding inefficiencies and vulnerabilities within the system.

“Government is proposing further reforms to public procurement in three different areas. First, the first reform is shortening procurement lead times. The second reform is to limit the use of single-source procurement, and the third is to tighten restricted tendering”.
Finance Minister Dr Cassiel Ato Forson

Addressing the first of these reforms, Dr Ato Forson detailed specific reductions to the lead times currently governing national and international competitive tendering processes. “Government will shorten procurement timelines. The lead time for national competitive tendering for goods will be reduced from 23 weeks to eight weeks,” he said.

Ghana’s Minister for Finance, Dr. Cassiel Ato Forson

He extended this commitment to international competitive tendering for works, announcing a similarly substantial reduction in processing time. “International competitive tendering for works will be reduced from 27 weeks to 14 weeks,” he said.

Competitive Tendering to Remain the Standard Practice

Dr Ato Forson emphasised that the government intends to preserve competitive tendering as the primary method for public procurement, with restricted tendering and single-source procurement treated strictly as exceptions rather than standard practice.

“Competitive tendering must remain the norm. Restricted tendering and single-source procurement must be the exception. Government will therefore tighten the rules governing these exceptional procurement methods, strengthen oversight and improve accountability to ensure greater transparency and better value for money”.
Finance Minister Dr Cassiel Ato Forson

Single-Source Procurement Restricted to Genuine Emergencies

Turning to the specific conditions under which single-source procurement would remain permissible, Dr Ato Forson outlined a narrow set of circumstances under which the government would allow this exceptional method to be used.

President John Dramani Mahama (R) and Finance Minister Dr Cassiel Ato Forson (L)

“Single-source procurement will be permitted only in genuine exceptional circumstances such as emergencies, national security or where only one supplier is capable of delivering the required goods, works and services”.
Finance Minister Dr Cassiel Ato Forson

He was careful to draw a clear distinction between legitimate emergencies and situations arising from administrative failures, making clear that poor planning would no longer qualify as sufficient justification for bypassing competitive procurement. “Urgency arising from poor planning will no longer be treated as an emergency,” he said.

New Sanctions for Procurement Act Violations

To reinforce these reforms, Dr Ato Forson announced that government would introduce sanctions targeting approvals granted in breach of the Public Procurement Act, adding a layer of accountability aimed at deterring improper use of exceptional procurement methods.

Dr Ato Forson framed the combined package of reforms as measures capable of producing tangible improvements across Ghana’s public procurement landscape, from faster project execution to reduced opportunities for abuse within the system.

Minister for Finance, Dr. Cassiel Ato Forson

The procurement reforms announced during the 2026 Mid-Year Budget Review reflect the government’s broader effort to strengthen fiscal discipline and improve transparency across public spending, an area that has drawn sustained scrutiny amid Ghana’s ongoing economic recovery efforts.

By significantly compressing procurement timelines while simultaneously tightening the exceptions that allow government to bypass competitive tendering, the reforms suggest an attempt to balance faster project delivery with stronger safeguards against procurement abuse.

Whether these changes translate into measurable improvements in how efficiently and transparently government executes public contracts will likely become clearer as the reforms take effect in the coming months, particularly as government continues to navigate the broader fiscal pressures shaping this year’s budget review.

READ ALSO: Mid-Year Budget Review- Ato Forson Declares Ghana’s Recovery No Accident

July 23, 2026
Ghana Targets 15 Months Import Cover by 2028

Ghana has unveiled an ambitious strategy to dramatically strengthen its financial shield against external shocks, with the government targeting international reserves equivalent to 15 months of import cover by the end of 2028.

The initiative, known as the Ghana Accelerated National Reserve Accumulation Policy (GANRAP), forms part of a broader economic reform agenda aimed at boosting foreign exchange stability, strengthening investor confidence and protecting the economy from global uncertainties.

Presenting the Mid-Year Budget Review to Parliament on Thursday, July 24, Finance Minister Dr Cassiel Ato Forson disclosed that the government had developed the reserve accumulation framework as a key pillar of its economic transformation programme.

“The government developed and is implementing the Ghana Accelerated National Reserve Accumulation Policy, GANRAP, with the objective of increasing Ghana’s international reserve to the equivalent of 15 months of import cover by the end of 2028.”
Dr Cassiel Ato Forson

The announcement comes at a time when countries across the world are strengthening their external buffers amid rising global economic uncertainties, currency pressures and unpredictable commodity markets.

Gold Strategy Powers Reserve Accumulation Drive

A major component of Ghana’s reserve-building strategy has been the government’s intervention in the gold sector through the establishment of the Ghana Gold Board.

According to Dr Forson, the policy has significantly transformed Ghana’s foreign exchange position by increasing inflows from gold exports.

“Through this intervention, Ghana generated an additional 15 billion USD in foreign exchange inflows from gold, significantly strengthening reserve accumulation and supporting exchange rate stability,” he told Parliament.

The Finance Minister explained that the gold policy was not only about improving gold trading systems but also about strengthening the entire economy.

“This was not simply a gold policy. This was a macroeconomic stabilisation policy designed to strengthen the cedi, build external buffers and restore confidence in the Ghanaian economy.”
Dr Cassiel Ato Forson

The government believes that increasing reserves will provide greater protection for the cedi by reducing excessive dependence on foreign exchange markets during periods of economic pressure.

Ghana’s Current Account Records Major Improvement

The Finance Minister also highlighted the impact of the gold reforms on Ghana’s external balance, describing the improvement as a major economic achievement.

Dr Forson revealed that Ghana’s current account balance improved significantly, moving from a surplus of 1.9% of GDP in 2024 to 8.3% in 2025.

“Mr. Speaker, this represents a four times increment of the current account surplus in just one calendar year.”
Dr Cassiel Ato Forson

The 6.4 percentage point improvement, according to the government, demonstrates the effectiveness of policies aimed at increasing foreign exchange inflows and improving economic resilience.

The stronger current account position is expected to support reserve accumulation and reduce vulnerabilities associated with foreign exchange shortages.

Finance Minister Dr Cassiel Ato Forson

Mining Sector Becomes Key Reserve Partner

In another major move, the government announced an agreement with large-scale mining companies to increase Ghana’s control over locally produced gold.

Dr Forson disclosed that mining companies had agreed to sell 30% of their annual gold production to the government for refining by local refineries.

“The government has also reached an agreement with large-scale mining companies to purchase 30% of their annual gold production for refinery by local refineries, strengthening domestic value addition and supporting reserve accumulation.”
Dr Cassiel Ato Forson

The policy is expected to deepen Ghana’s participation in the gold value chain while creating opportunities for local refining businesses.

The government believes that refining more gold domestically will ensure that Ghana captures more value from one of its most important natural resources.

Fiscal and Monetary Coordination Takes Centre Stage

Beyond gold and reserves, the government has also introduced institutional reforms aimed at improving economic management.

Dr Forson announced amendments to the Bank of Ghana Act to strengthen cooperation between fiscal and monetary authorities.

“The government further amended the Bank of Ghana Act to make inflation targeting a shared responsibility between the Ministry of Finance and the Bank of Ghana, ensuring stronger coordination between fiscal, financial and monetary authorities.”
Dr Cassiel Ato Forson

The move is expected to create stronger collaboration in managing inflation, exchange rate stability and broader macroeconomic conditions.

According to the government, improved coordination between the Ministry of Finance and the central bank will help ensure that economic policies work together rather than operate independently.

Reserve Target Seen as Economic Protection Shield

Achieving 15 months of import cover would represent a significant increase in Ghana’s ability to withstand external pressures.

Strong international reserves are often viewed as a critical measure of economic stability because they provide governments with resources to support essential imports, manage currency volatility and respond to emergencies.

The government’s reserve accumulation agenda is therefore expected to play a crucial role in protecting Ghana’s economy against future shocks.

However, analysts and economic observers will be closely monitoring whether the country can sustain the foreign exchange gains and maintain disciplined economic management over the coming years.

The success of GANRAP will depend on continued growth in export earnings, effective management of natural resources and policies that maintain confidence in Ghana’s economic direction.

Government Bets on Long-Term Economic Transformation

The government says the combination of gold reforms, reserve accumulation policies and stronger fiscal coordination represents a new approach to economic management.

Dr Forson emphasised that the reforms are focused on building a stronger foundation for sustainable growth.

With the target of achieving 15 months of import cover by 2028, Ghana is positioning reserve accumulation as a central strategy in its economic recovery and resilience plans.

The coming years will determine whether this ambitious target can be achieved and whether the policy measures will translate into greater stability for businesses, investors and households.

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July 23, 2026
Gold Trade Reforms Generates $15bn Foreign Exchange – Finance Minister

Minister for Finance, Hon. Dr. Cassiel Ato Forson, has announced that Ghana secured an additional $15 billion in foreign exchange inflows following the implementation of strategic gold trade reforms.

Presenting the Mid-Year Budget Review before Parliament, the Minister highlighted that this significant capital injection was anchored by a transformational policy reform featuring complementary fiscal measures to support inflation targeting, safeguard foreign exchange stability, and reinforce overall macro-economic resilience.

“Central to this reform was the establishment of the Ghana Gold Board to curb gold smuggling, formalise the gold trade, and ensure that a greater share of Ghana’s mineral wealth benefits the Ghanaian people. Through this intervention, Ghana generated an additional 15 billion USD in foreign exchange inflows from gold, significantly strengthening reserve accumulation and supporting exchange rate stability. This single policy measure improved Ghana’s current account balance by 6.4 percentage points, from a surplus of 1.9% in 2024 to 8.3% in 2025.”
Minister for Finance, Hon. Dr. Cassiel Ato Forson

Minister for Finance, Hon. Dr. Cassiel Ato Forson

Dr. Ato Forson detailed how the centralized mechanism successfully redirected mineral revenue into official state reserves.

The strategic setup plugged long-standing financial leakages by institutionalizing formal export channels across both artisanal small-scale operators and large-scale mining enterprises.

By capturing transactions that previously slipped through illicit trade routes, the government dramatically enlarged its foreign exchange pool, directly elevating the national current account balance by 6.4 percentage points—climbing from a 1.9% surplus in 2024 to a robust 8.3% surplus in 2025.

The Genesis of the Ghana Gold Board and Institutional Restructuring

The establishment of the Ghana Gold Board (GoldBod) marked a structural turning point in the governance of Ghana’s extractive sector.

Prior to this intervention, illegal gold smuggling and unrecorded exports drained vital capital away from the central bank, leaving the local currency vulnerable to sharp depreciation and speculative pressures.

By creating a single regulatory authority to oversee procurement, aggregation, and direct international export, the government successfully formalised the gold supply chain and asserted national control over primary mineral resources.

Minister for Finance, Hon. Dr. Cassiel Ato Forson

This institutional overhaul aligned fiscal policy directly with monetary objectives, creating a seamless pipeline between domestic production and official reserve accumulation.

Under the GoldBod model, weekly quotas were systematically established across small-scale and commercial miners, ensuring consistent, predictable inflows into state coffers.

The aggressive suppression of smuggling rings effectively re-routed massive volumes of bullion into regulated state channels, turning a legacy structural vulnerability into a permanent pillar of fiscal strength.

Macroeconomic Impact and Current Account Quadrupling

The immediate consequence of this $15 billion foreign exchange influx was a total transformation of Ghana’s balance of payments and external account health.

The current account balance expanded fourfold within a single calendar year, leaping from a modest 1.9% surplus in 2024 to an extraordinary 8.3% of Gross Domestic Product in 2025.

Hon. Ato Forson, Finance Minister

This unprecedented 6.4 percentage point jump provided an immediate buffer against external commodity shocks and restored international investor confidence.

By fortifying the Bank of Ghana’s gross international reserves, the government established a durable defense mechanism against currency volatility.

The massive inflow of dollar liquidity relieved structural pressure on the Ghana Cedi, stemming rapid depreciation and stabilizing domestic prices.

Rather than relying strictly on foreign debt borrowing or balance-of-payments bailouts to defend the national currency, Ghana successfully leveraged its own mineral wealth to build real, unencumbered reserve buffers.

Socio-Economic Benefits and Direct National Dividend

The benefits of the $15 billion foreign exchange boost extend far beyond high-level balance sheets, delivering direct economic dividends to the Ghanaian population.

Currency stabilization directly mitigated import-driven inflation, cooling down the cost of living by stabilizing market prices for everyday essential goods, food, and fuel.

GoldBod CEO, Sammy Gyamfi

Local business owners and importers experienced reduced foreign exchange volatility, allowing for clearer financial planning and lower operational risk.

Furthermore, by formalizing the small-scale gold sector, thousands of local miners were integrated into the recognized banking ecosystem, granting them access to fair pricing mechanisms, safer working standards, and official supply chains.

The expanded revenue base provides the state with enhanced fiscal space to fund critical infrastructure, healthcare, and educational initiatives without exacerbating national debt.

Through the GoldBod structure, Ghana has demonstrated how resource sovereignty and disciplined fiscal intervention can transform natural mineral wealth into broad-based economic stability for all citizens.

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July 23, 2026
Mid-Year Budget Review: Ghana Targets Debt Ceiling With New Fiscal Rule

The Ghanaian government has unveiled a major fiscal restructuring plan aimed at reversing years of rising debt accumulation and restoring confidence in the country’s public financial management system.

As part of the midyear budget review, the government announced sweeping reforms, including a new binding fiscal rule that will limit debt levels and enforce stronger spending controls.

The reforms, according to the government, represent a decisive shift from previous approaches to managing public finances, with greater emphasis now being placed on controlling expenditure, improving accountability and ensuring that public resources deliver measurable benefits to citizens.

Presenting the Mid-Year Budget Review to Parliament, Finance Minister Dr Cassiel Ato Forson stated that the country’s International Monetary Fund (IMF) programme had been recalibrated to focus more on expenditure management rather than relying heavily on revenue increases.

“Government also recalibrated their IMF programme, shifting the emphasis from revenue-led to expenditure-led fiscal consolidation to achieve a fairer sharing of the adjustment burden.”
Dr Cassiel Ato Forson

The move signals a new direction in Ghana’s fiscal strategy, as authorities seek to reduce debt pressures while protecting households and businesses from excessive taxation.

New Fiscal Rule Sets Strict Debt Limits

A key component of the reform package is an amendment to the Public Financial Management Act, introducing a binding fiscal rule designed to keep government finances under tighter control.

According to the FInance Minister, the new framework requires Ghana to maintain a minimum annual primary surplus of 1.5 percent of Gross Domestic Product (GDP) while working towards a debt-to-GDP ceiling of 45 percent by 2034.

“We amended the Public Financial Management Act to institutionalise a binding fiscal rule requiring a minimum annual primary surplus of 1.5% of GDP and a debt-to-GDP ceiling of 45% by 2034.”
Dr Cassiel Ato Forson

The policy is expected to provide a stronger legal foundation for fiscal discipline and prevent future administrations from accumulating excessive debt without adequate safeguards.

The government emphasised that the reforms were intended to change the perception of Ghana’s public finance management by ensuring that discipline becomes a permanent feature of state operations.

“These reforms signalled that fiscal discipline would no longer define fiscal indiscipline would no longer define the Ghanaian state,” Dr Ato Forson added.

State Enterprises Face Tougher Spending Controls

One of the major concerns highlighted by government was the growing financial burden created by state-owned enterprises (SOEs). Authorities revealed that liabilities accumulated by SOEs had contributed significantly to Ghana’s debt challenges over the years.

“Over the last 10 years, liabilities of state-owned enterprises have added the equivalent of about 3% of GDP to Ghana’s public debt every single year,” Ato Forson disclosed.

According to the Finance Minister, some SOEs failed to honour contractual obligations, forcing government to absorb their liabilities and increasing pressure on public finances.

“This occurred because state-owned enterprises failed to honour their contractual obligation compelling the government to assume and settle those liabilities,” he explained.

The government argued that these accumulated obligations diverted resources away from critical national development projects.

“This contributed to the sharp rise in Ghana’s public debt. As a result, the resources that would have financed critical infrastructure were used to pay those SOEs’ debt.”
Dr Cassiel Ato Forson

The new commitment authorisation regime will now apply to state-owned enterprises, ensuring they cannot commit government resources without approval.

Spending Controls And Accountability Measures Expanded

To strengthen expenditure management, government has established new institutions including the Value for Money Office and the Fiscal Council.

The Value for Money Office is expected to improve efficiency in public spending by ensuring that government projects and programmes provide maximum benefits to citizens.

“We established the Value for Money Office to strengthen expenditure efficiency, improve the quality of public expenditure and ensure that every city spent delivers maximum value for the Ghanaian people.”
Dr Cassiel Ato Forson

The Fiscal Council will also enhance oversight by promoting transparency and accountability in government finances.

The government further announced a comprehensive audit of public payables to eliminate irregular obligations and prevent the accumulation of unauthorized debts.

Additionally, amendments to the Public Procurement Act will require commitment authorisation before procurement activities are undertaken.

“This reform firmly linked procurement to the approved budget and restored discipline to public expenditure management across the government,” Dr Atol Forson said.

Leaner Government And Tax Reforms

Beyond expenditure controls, government announced measures to reduce administrative costs by shrinking the size of government.

The number of ministers has been reduced from 123 at its peak to 60, while ministries have been cut from 30 to 23.

Government explained that the decision was not only political but also a financial strategy.

“A leaner government is not merely good politics but is also a sound fiscal policy,” it stated.

Authorities also announced reductions in non-essential expenditure, including excessive foreign travel, workshops, conferences and unnecessary vehicle purchases.

On taxation, government said it was pursuing reforms aimed at supporting businesses, improving compliance and restoring investor confidence.

“The objective was very clear. First, to restore investor confidence. Second, to revive private enterprises. Third, to provide a relief to households and businesses.”
Dr Cassiel Ato Forson

As part of the tax overhaul, the government abolished several levies including the Electronic Transfer Levy, Betting Tax, COVID-19 Health Recovery Levy, Emission Tax and VAT on Motor Insurance.

The reforms, the government believes, will create a more efficient tax system while reducing pressure on citizens and businesses.

With the introduction of the new fiscal rule and stronger spending controls, Ghana is positioning itself for a new era of financial management aimed at reducing debt vulnerabilities and protecting future generations from excessive borrowing.

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July 23, 2026
Mid-Year Budget Review- Ato Forson Declares Ghana’s Recovery No Accident

Finance Minister Dr Cassiel Ato Forson has rejected claims that Ghana’s recent economic improvements are the result of coincidence, insisting that the country’s recovery is being driven by deliberate policy choices, fiscal discipline and stronger economic management.

Presenting the Mid-Year Budget Review to Parliament on Thursday, July 24, Dr Forson argued that Ghana’s progress under the current administration was achieved through a carefully planned reform programme aimed at restoring stability, rebuilding investor confidence and strengthening public finances.

According to the Finance Minister, the economic gains recorded in recent months were not simply inherited benefits from external programmes but the outcome of tough decisions taken by government since assuming office.

“Ghana’s recovery is as a result of superior economic management,” Dr Forson told Parliament, stressing that the improvements in key economic indicators reflected the impact of government interventions.

Recovery Built Through Difficult Decisions

Dr Forson said when the administration took office, it immediately recognised that Ghana required more than temporary measures to address its economic difficulties.

He explained that government concluded that the previous approach to managing the economy was insufficient and that structural reforms were necessary to restore confidence.

“When this administration assumed office, it moved swiftly and decisively to stabilise the economy and begin the work of national reconstruction. It was immediately clear that the old model of managing the economy had failed and Ghana did not need incremental adjustment, but it needed structural reforms.”
Dr Cassiel Ato Forson

The Finance Minister acknowledged that the reforms introduced were challenging and required sacrifices from citizens, but argued that they were necessary to place the economy on a stronger foundation.

“These decisions demanded our collective sacrifice, but they were necessary to restore stability and rebuild confidence,” he stated.

IMF Programme Not Sole Reason for Progress

Dr Forson pushed back against suggestions that Ghana’s economic recovery was mainly due to the International Monetary Fund programme or the country’s debt restructuring process.

While recognising the importance of those interventions, he maintained that they only provided support and could not replace sound domestic economic management.

“Debt restructuring may create fiscal space, but it does not create fiscal discipline,” Dr Forson said.

“An IMF programme may provide a framework, but it cannot substitute for sound policy, disciplined implementation and political will.”
Dr Cassiel Ato Forson

He argued that sustainable recovery depends on strong leadership, effective policies and consistent implementation.

“Sustainable economic recovery is built on good policy choices, competent economic management and disciplined execution, and most importantly, courageous leadership.”
Dr Cassiel Ato Forson

Three Major Reforms Behind Ghana’s Economic Revival

The Finance Minister identified three major policy reforms that he believes have driven Ghana’s turnaround.

The first reform was fiscal correction, aimed at controlling public finances, reducing unnecessary expenditure and placing public debt on a sustainable path.

The second was the modernisation of Ghana’s tax regime to improve domestic revenue mobilisation.

The third was the implementation of complementary fiscal policies designed to support inflation reduction and exchange rate stability.

“These key transformational reforms are as follows. The first is fiscal correction, the second is the modernisation of Ghana’s tax regime, and the third is a complementary fiscal policy for inflation targeting and exchange rate stability.”
Dr Cassiel Ato Forson

Spending Cuts Deliver Fiscal Improvement

According to the Finance Minister, one of the major achievements of government’s fiscal correction programme was a significant reduction in public expenditure.

He said the 2025 budget was reset to 2023 nominal levels, with government eliminating what it described as wasteful spending and improving efficiency across the public sector.

“As a result, primary expenditure declined sharply from 18.7% of GDP in 2024 to 13.2% of GDP in 2025,” Dr Forson explained.

He described the adjustment as a major fiscal achievement because it was achieved without damaging economic growth. “A 5.5% adjustment without hurting economic growth,” he emphasised.

The Finance Minister also highlighted improvements in Ghana’s primary balance, noting that the country moved from a deficit position into surplus.

“The primary balance also improved from a deficit of 2.9% of GDP in 2024 to a surplus of 2.5% of GDP in 2025, placing public debt firmly on a downward trajectory.”
Dr Cassiel Ato Forson

Ghana Sends Strong Signal to Investors

Dr Forson said the fiscal reforms had sent a clear message to domestic and international investors that Ghana was committed to responsible economic management.

He described the reduction in government expenditure as evidence that fiscal discipline had become central to economic governance.

“Mr. Speaker, this sent an unmistakable signal to Ghanaians, investors and other development partners that fiscal discipline is the new order.”
Dr Cassiel Ato Forson

The Finance Minister further argued that the progress recorded across inflation, debt management, fiscal performance and investor confidence reflected the impact of government’s reform agenda.

He maintained that Ghana’s recovery was the result of intentional decisions rather than luck.

“The evidence before us is overwhelming. Ghana’s recovery has been driven by a deliberate programme of economic reforms implemented since President Mahama assumed office in January 2025.”
Dr Cassiel Ato Forson

As the government continues implementing its economic programme, the Finance Minister believes the foundation has been laid for sustained growth, improved fiscal stability and renewed confidence in Ghana’s economy.

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July 23, 2026
BoG Holds Policy Rate at 14% as Inflation Clouds Gather

The Bank of Ghana (BoG) has once again opted for caution, resisting growing expectations for another interest rate cut by maintaining the Monetary Policy Rate (MPR) at 14 percent.

The unanimous decision by the Monetary Policy Committee (MPC) at the end of its 131st meeting underscores the central bank’s determination to keep inflation under control even as Ghana’s economy continues to show encouraging signs of resilience.

While domestic economic indicators remain positive, policymakers believe mounting global uncertainties, particularly escalating tensions in the Middle East, could threaten recent gains in price stability.

The announcement signals that the central bank is placing greater emphasis on protecting the economy from fresh inflationary shocks than providing additional monetary stimulus.

Inflation Remains Under Watch

Although inflation increased in June, the MPC said the rise was largely driven by temporary factors and remains consistent with its overall projections.

According to the Committee, headline inflation has continued moving closer to the lower end of the Bank’s medium term target range, helped significantly by favourable base effects. At the same time, both inflation expectations and core inflation have increased modestly but remain broadly anchored within acceptable levels.

The Committee noted that its latest inflation forecast remains largely unchanged from the previous assessment.

Officials expect inflation to gradually return to the target range over the coming months, provided current economic conditions remain stable and no major external shocks emerge.

This outlook offered enough confidence for policymakers to avoid tightening monetary policy further. However, it was equally insufficient to justify another reduction in the benchmark interest rate.

Middle East Conflict Raises Fresh Concerns

A major factor behind the MPC’s cautious decision was the growing uncertainty surrounding geopolitical developments in the Middle East.

According to the Committee, renewed tensions in the region have already contributed to higher international crude oil prices, creating fresh inflation risks for many economies, including Ghana.

Higher global oil prices often translate into increased fuel costs, transportation expenses and production costs across various sectors of the economy. These developments can eventually push consumer prices upward and slow progress made in reducing inflation.

The Bank warned that these external developments remain one of the biggest threats to Ghana’s inflation outlook in the months ahead.

Apart from geopolitical risks, the Committee also identified possible adjustments in domestic utility tariffs as another source of upward pressure on inflation.

Together, these risks could complicate efforts to maintain stable prices if they materialise simultaneously.

Ghana’s Economy Continues to Impress

Despite the cautious stance on interest rates, the MPC painted an optimistic picture of Ghana’s broader economic performance.

The Committee said economic activity remains resilient, supported by strong growth in private sector credit, improving business confidence and increasing consumer optimism.

Businesses continue to benefit from favourable financing conditions while households are gradually regaining confidence as inflation eases and macroeconomic stability improves.

The Bank also highlighted Ghana’s improving external sector.

According to the MPC, stronger trade balances and adequate international reserve buffers have significantly enhanced the country’s capacity to absorb external shocks.

These reserve levels provide an important layer of protection against global market volatility and unexpected foreign exchange pressures.

The Committee believes these positive economic fundamentals continue to strengthen Ghana’s recovery despite the challenging global environment.

Balancing Growth and Stability

The latest policy decision reflects the difficult balancing act facing central banks across the world.

While lower interest rates can stimulate borrowing, investment and economic expansion, they can also increase inflation if introduced prematurely.

The Bank of Ghana believes maintaining the current policy rate provides the appropriate balance between supporting economic growth and safeguarding price stability.

The Committee also stressed that ongoing fiscal consolidation efforts by the government remain critical in complementing monetary policy.

According to the MPC, disciplined fiscal management combined with carefully calibrated monetary policy will help sustain macroeconomic stability while keeping inflation under control.

The Governor of the Bank of Ghana announced that, after considering all available economic data and potential risks, the Committee unanimously agreed to keep the Monetary Policy Rate unchanged at 14 percent.

What the Decision Means for Businesses and Consumers

For businesses, the decision means borrowing costs are unlikely to change immediately, allowing companies to continue planning investments under relatively stable financing conditions.

Banks are also expected to maintain lending strategies based on the current policy environment, while investors may interpret the move as a signal that the central bank remains committed to preserving macroeconomic stability.

Consumers, meanwhile, may have hoped for lower interest rates to reduce the cost of loans and mortgages. However, the MPC believes protecting the economy from another wave of inflation ultimately serves the broader interests of households and businesses alike.

As global uncertainties continue to evolve, especially developments in the Middle East and international commodity markets, future policy decisions will depend heavily on incoming economic data.

For now, the Bank of Ghana has made its position clear. The battle against inflation is not yet over, and caution remains the preferred strategy as the country works to secure lasting economic stability.

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July 22, 2026
Global Health Aid Fell From $49.6bn to $39.1bn in a Year – President Mahama

President John Dramani Mahama has urged African leaders to treat the sharp decline in global health funding as a turning point for the continent, using the opening of the African Union’s Extraordinary Session on Health in Accra to announce new maternal health commitments, push for greater investment in African-made medicines and vaccines, and call for a self-reliant health system capable of withstanding future global shocks.

H. E. Dramani Mahama warned that Africa’s heavy dependence on foreign health financing and imported medical supplies leaves the continent vulnerable, while stressing that stronger local manufacturing, sustainable financing and equitable healthcare for conflict-affected populations must become central to Africa’s health agenda.

“Development assistance for health fell more than one fifth in a single year from around $49.6 billion to about $39.1 billion.”
H. E. Dramani Mahama

He noted that many member states still finance roughly half of their health budgets from external sources. While he acknowledged the temptation to reach for words like crisis or catastrophe, he urged delegates instead to respond with a sense of urgency rather than despair, describing the fading aid system as scaffolding rather than the tower it was meant to support.

H.E President John Mahama at the African Union Summit Health

Progress Cited Alongside the Continent’s Disease Burden

H. E. Dramani Mahama walked delegates through a mix of sobering figures and hard-won gains. He noted that Africa remains home to two-thirds of the 40 million people living with HIV worldwide, even as AIDS-related deaths have fallen by nearly three-quarters since their peak. On tuberculosis, he said incidence had dropped by 28 percent and deaths by 46 percent in under a decade, despite seventeen of the world’s thirty highest-burden countries being on the continent.

He extended the picture to hepatitis, neglected tropical diseases and a fast-rising wave of non-communicable diseases, which he said now claim more than two million African lives annually before age seventy, with cervical cancer alone killing over 80,000 women each year.

A New Push on Maternal and Child Health

Turning to maternal health, President John Mahama offered his personal backing to President Samia Suluhu Hassan in her role as the African Union’s Champion for Maternal and Child Health, announcing that Ghana intends to work closely with her through the Accra Reset on what he called the Mother Africa Call to Action.

He described the initiative as the continent’s first charter in support of the African Union’s Road Map on Maternal and Child Survival, built around measurable targets and clear reform principles.

Warning Against Leaving Conflict Zones Behind

H.E. Mahama cautioned that Africa’s broader health ambitions would mean little if they failed to reach communities living through conflict and displacement, pointing to regions where clinics have been destroyed and vaccine cold chains reduced to broken equipment.

AU Summit, Delegates

He argued that instability in one part of the continent could not be allowed to undermine health responses elsewhere, using the example of unrest in the Congo Basin potentially distracting from efforts to contain Ebola near the Nile.

“The sovereign health agenda that is guiding our steps as we march out of dependence will ring hollow if it cannot reach every corner of our continent.”
H.E Dramani Mahama

Africa’s Reliance on Imported Medicines and Vaccines

Mahama then turned to what he described as one of the continent’s most urgent vulnerabilities, its dependence on imported medical supplies. He told delegates that Africa imports around 70 percent of its medicines, more than 90 percent of its medical devices and over 99 percent of its vaccines, a dependency he linked directly to the continent’s experience during the COVID-19 pandemic, when African nations were often served last despite having funds ready to pay.

He said that experience had left a lasting impression on the continent’s leadership.

Signs of a Shifting Manufacturing Landscape

As evidence of progress, Mahama pointed to vaccines now being produced in Dakar, messenger RNA research advancing in Cape Town, Ghana’s newly established Vaccine Institute engaging directly with global biotech strategists, and a new biologicals facility operating in Kigali.

President Mahama at the Opening of AU Extraordinary Summit on Universal Health and Ending Aids

He announced that the Pharmaceutical Manufacturing Plan for Africa had moved beyond the planning stage, and that the African Medicines Agency, led by Dr. Mimi Darko, was transitioning from treaty commitments into functioning institutional machinery. He added that a Strategic Joint Procurement mechanism and a Continental Active Pharmaceutical Ingredient Strategy were being developed to give the continent’s manufacturers the support they have long needed.

President Mahama closed his address by framing the moment as a turning point for the continent’s health independence, describing African leaders as custodians of a transformation that now extends from maternal health charters to the factories expected to anchor Africa’s future medicine and vaccine supply chains.

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July 22, 2026
ACEP Cautions Ghana Against Measuring Jubilee Recovery Only by Higher Production

The expected recovery of Ghana’s Jubilee oil field must be assessed beyond increased production figures, with attention placed on whether higher petroleum output can deliver sustainable economic benefits through effective revenue management, the Africa Centre for Energy Policy (ACEP) has cautioned.

The comment follows an operational update from Kosmos Energy indicating improved production performance at the Jubilee Field after a new drilling campaign, with the company projecting stronger output levels following the commissioning of new wells.

However, Head of Petroleum and Conventional Energy at ACEP, Mr Kodzo Yaotse, said Ghana’s experience with previous production forecasts shows the need for caution, arguing that increased output projections must translate into sustained improvements in overall national production.

Speaking in an interview with The Vaultz News, Mr Yaotse said while the latest development presents an opportunity for Ghana’s upstream sector, similar expectations have emerged in the past without fully reversing the decline trajectory of the country’s oil production.

We have heard this kind of news from the producers over and over again. When Jubilee South East was commissioned, we were promised that it was going to deliver an additional 33,000 barrels of oil. But two years down the line, the decline in Ghana’s total production, of which Jubilee is the biggest production field, has not been arrested.
Head of Petroleum and Conventional Energy at ACEP, Mr Kodzo Yaotse

Production recovery must prove sustainable

Mr Yaotse explained that the latest drilling campaign provides renewed optimism but said the industry must wait to determine whether the additional production will be sustained over time.

He noted that Ghana’s oil sector has experienced declining production since 2019, making consistent output growth critical to restoring confidence in the sector and improving petroleum revenue prospects.

We can only hope that this time round, the additional campaign that has been done would result in increased production to really stem the tide in the decline that we have witnessed in Ghana’s oil space since 2019.
Head of Petroleum and Conventional Energy at ACEP, Mr Kodzo Yaotse

Jubilee, Ghana’s largest producing oil field, has historically been a major contributor to the country’s crude oil output and petroleum revenues since commercial production began in 2010.

Any sustained recovery from the field could therefore have implications for government revenues, foreign exchange earnings and funding for national development priorities.

Revenue allocation already defined under PRMA

While increased production could result in higher petroleum revenues, Mr Yaotse stressed that Ghana already has a legal framework governing how petroleum receipts are allocated and utilised.

Under the Petroleum Revenue Management Act (PRMA), petroleum revenues are distributed among various designated areas, including the Annual Budget Funding Amount (ABFA), the Ghana National Petroleum Corporation (GNPC), and the Ghana Petroleum Funds.

Kodzo Yaotse, Head of Petroleum and Conventional Energy, Africa Centre for Energy Policy (ACEP)

For petroleum revenues, there is a mechanism for how petroleum revenues are spent in Ghana through the PRMA. So that means that for each of these purposes, there is going to be more money to share to them.
Head of Petroleum and Conventional Energy at ACEP, Mr Kodzo Yaotse

He explained that the focus should therefore not necessarily be on changing the allocation formula but on assessing whether funds reaching the various areas are being used effectively.

According to him, the proportions prescribed under the law are largely being followed, but questions around impact require value-for-money assessments.

As to when the money gets into those places, whether they are being used for the further purpose that is supposed to be used for, that is when you need to conduct value for money assessments on each of these to be able to arrive at that determination.
Head of Petroleum and Conventional Energy at ACEP, Mr Kodzo Yaotse

Focus shifts from revenue collection to impact

Mr Yaotse noted that petroleum revenues have supported several national programmes over the years, including infrastructure and social interventions funded through the ABFA.

He added that Ghana’s petroleum revenue framework also provides mechanisms that allow citizens and stakeholders to track how funds are managed.

He pointed to the Heritage Fund and other petroleum funds as examples of structures established to ensure accountability and long-term benefit from the country’s natural resources.

PRMA

According to him, the ability to trace petroleum revenues remains one of the key advantages of having a structured revenue management framework.

That is the advantage of having the PRMA spell out what you should do with the money. So, you will be able to follow the money to see where the money goes.
Head of Petroleum and Conventional Energy at ACEP, Mr Kodzo Yaotse

Jubilee recovery presents opportunity and responsibility

The potential increase in Jubilee production comes at a time when Ghana continues to seek ways to maximise value from its petroleum resources while addressing fiscal pressures.

Jubilee Oil Field

For ACEP, the recovery represents an opportunity, but the ultimate measure of success will depend on whether additional oil production leads to stronger economic outcomes.

As Ghana anticipates improved petroleum receipts from increased production, stakeholders say attention must extend beyond the number of barrels produced to how revenues generated are managed, invested and translated into national development.

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July 22, 2026
Domestic Borrowing Pushes Ghana’s Debt To GH¢720.8bn

Ghana’s public debt has climbed to GH¢720.8 billion in May 2026, with increased domestic borrowing emerging as the major force behind the latest surge in the country’s debt stock.

The new figures from the Bank of Ghana’s July 2026 Summary of Financial and Economic Data show that Ghana’s total public debt is now equivalent to 45.1% of Gross Domestic Product (GDP), while the dollar value of the debt stands at US$61.5 billion.

The increase marks another significant rise in the country’s borrowing levels, raising fresh concerns about debt management, fiscal discipline, and the government’s ability to maintain sustainable public finances.

According to the data, Ghana’s debt stock has been rising consistently since the beginning of 2026. The country’s public debt stood at GH¢663.4 billion in January before increasing to GH¢674.1 billion in February.

The upward movement continued in March when the debt stock reached GH¢686.1 billion, followed by another rise to GH¢695.9 billion in April. By May, the debt had crossed the GH¢720 billion threshold.

Domestic Debt Becomes Major Driver Of Increase

The latest debt increase has largely been driven by growth in domestic borrowing as government financing needs continue to put pressure on the local market.

The Bank of Ghana data revealed that domestic debt increased sharply to GH¢379.1 billion in May 2026 from GH¢369.2 billion recorded in April. This represents about 23.7% of GDP.

The domestic debt figure has risen steadily throughout 2026. In March, domestic debt stood at GH¢365.8 billion, after reaching GH¢360.4 billion in February. In January, it was estimated at GH¢341 billion.

The continuous increase reflects the government’s reliance on domestic financing instruments to support budget operations, meet financial obligations, and fund development programmes.

However, increased domestic borrowing can create challenges for the private sector by competing for available funds and potentially influencing interest rates. Analysts have often warned that excessive domestic borrowing could affect credit availability for businesses and households.

External Debt Remains Relatively Stable

While domestic debt recorded a significant increase, Ghana’s external debt position remained relatively stable during the period.

The country’s external debt stood at US$29.1 billion in May 2026, slightly below the US$29.2 billion recorded in April. The external debt represented approximately 21.4% of GDP.

The figure was unchanged from March 2026, when external debt was also recorded at US$29.1 billion.

The stability in external debt comes as Ghana continues efforts to manage its international obligations following years of debt restructuring initiatives and fiscal adjustment measures.

The government has been working to restore investor confidence, strengthen debt sustainability, and improve its financial position through fiscal reforms and improved revenue mobilisation.

Debt Growth Comes Despite Fiscal Surplus

Despite the rising debt stock, Ghana recorded positive developments in its fiscal operations during the period under review.

The fiscal balance-to-GDP position recorded a surplus of 0.1% in March 2026, indicating that government revenues slightly exceeded expenditures during the period.

The country also recorded a primary balance surplus of 1.1% of GDP in March 2026.

A primary surplus is often considered a key indicator of fiscal improvement because it shows that government revenue is sufficient to cover spending excluding interest payments on debt.

The positive fiscal balance suggests that ongoing measures to improve government finances may be yielding results. However, the continued rise in debt indicates that borrowing remains an important component of government financing.

Rising Debt Raises Questions Over Sustainability

The latest debt figures are expected to renew discussions about Ghana’s long-term debt sustainability and fiscal strategy.

Although the debt-to-GDP ratio remains below some of the levels recorded during previous years, the increase in nominal debt highlights the pressure government continues to face in financing public activities.

Economic observers have emphasised the need for stronger revenue generation, expenditure controls, and efficient allocation of borrowed funds to ensure that new debt contributes to economic growth.

The government’s ability to maintain fiscal discipline will remain critical as it seeks to balance infrastructure investment, social programmes, and debt repayment obligations.

Ghana’s Borrowing Path Under Close Watch

With public debt now standing at GH¢720.8 billion, attention will focus on how the government manages future borrowing requirements and whether fiscal improvements can be sustained.

The increase in domestic debt suggests that local financing remains a major pillar of government operations. While borrowing can support economic development when used effectively, rising debt levels require careful management to avoid renewed financial pressures.

As Ghana continues its economic recovery efforts, the trajectory of public debt will remain a key measure watched by investors, businesses, and citizens.

The challenge ahead will be ensuring that borrowing translates into productive investments capable of strengthening economic growth while keeping debt levels under control.

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July 22, 2026