As Finance Minister Dr. Cassiel Ato Forson prepares to present the 2027 Budget to Parliament on Thursday, November 12, 2026, government is seeking to shift Ghana’s economic focus from stabilisation to production, industrial expansion and job creation.
Following progress in its economic recovery programme, including the completion of the final review under the International Monetary Fund (IMF) programme in July 2026, economic growth of 6.0% in the second quarter and a decline in annual inflation to 5.2% in September, the government is turning its attention to longer-term structural transformation.
At the centre of this transition is the US$10 billion New Economy programme, a four-year investment framework covering 2027 to 2030.
Announced by President John Dramani Mahama, the initiative seeks to translate the gains from economic recovery into increased domestic production, value addition, industrial capacity and employment.
But what exactly does the programme entail, which sectors stand to benefit, and how does it fit into the government’s existing economic policies?
Why is government introducing the New Economy programme?
The central objective of the New Economy framework is to ensure that improvements in macroeconomic conditions translate into tangible economic opportunities for businesses and households.
Government’s position is that the sacrifices made during the economic recovery must now deliver practical benefits, including decent jobs for young people, improved incomes for farmers and greater opportunities for local enterprises.
The programme also seeks to address some of the structural challenges that have historically constrained Ghana’s productive sectors.
These include high energy costs, limited processing infrastructure, expensive credit and the country’s continued dependence on imported goods.
Through increased investment in local production and processing, government hopes to reduce import dependence, expand exports and retain more value within the domestic economy.
The broader ambition is also to improve Ghana’s credit standing and create conditions that could support lower borrowing costs and increased access to long-term financing for businesses.
The seven priority pillars
The New Economy framework is built around seven priority areas, with government proposing to mobilise approximately US$10 billion over four years to support investments across these sectors.
1. Macroeconomic stability
Macroeconomic stability is the foundation of the programme. Government intends to preserve the gains made in stabilising the economy and maintain a fiscal environment that supports investment, business expansion and long-term growth.
2. Commercial agriculture, agri-industry and agribusiness
Agriculture and agro-processing are central to the programme, with government seeking to increase domestic food production, expand processing capacity and reduce reliance on imported food.
The focus also includes oil palm production and other commercial agricultural activities that could create jobs across farming, processing, storage and distribution.
3. Energy sector reforms and investment
Reliable and affordable energy is critical to industrial expansion. This pillar focuses on reforms and investment to address challenges within the energy sector and improve power supply for businesses and manufacturers.
4. Critical minerals and value addition
Government intends to increase domestic processing of Ghana’s critical minerals rather than rely predominantly on exporting raw materials.
The objective is to retain more economic value locally, develop processing industries and create additional employment opportunities.
5. Cotton, textiles and garments
The programme also targets the revival and expansion of Ghana’s textile and garment industry.
Increased local production could support manufacturing, create jobs and strengthen the domestic supply chain.
6. Tourism, culture and creative arts
Government intends to expand the contribution of tourism, culture and the creative economy to national output and foreign exchange earnings.
This includes strengthening the country’s tourism and hospitality industries while creating opportunities for businesses and workers in the creative sector.
7. Pharmaceutical manufacturing hub
The development of a pharmaceutical manufacturing hub is intended to strengthen local production of essential medicines and reduce dependence on imported pharmaceutical products.
It could also position Ghana as a regional supplier of pharmaceutical products if supported by the necessary infrastructure, investment and regulatory framework.
Who stands to benefit?
The programme identifies several groups that could benefit from increased investment in productive sectors.
Young people are expected to benefit from employment opportunities across commercial agriculture, manufacturing, textiles, pharmaceuticals and the creative industries.
Farmers and agribusinesses could benefit from improved access to infrastructure, including irrigation, storage, transportation and processing facilities, as government seeks to strengthen the agricultural value chain.
Local manufacturers and businesses could also gain from improved access to financing, more reliable energy and measures to encourage domestic production and procurement.
At the broader economic level, increased local production and value addition could reduce import dependence, strengthen export capacity and support foreign exchange generation.
However, the scale of these benefits will depend on the specific projects selected, how resources are allocated and the effectiveness of implementation.
How does it complement the 24-Hour Economy?
One of the key questions surrounding the New Economy programme is how it relates to the government’s flagship 24-Hour Economy policy.
The two initiatives share several priorities, particularly in agriculture, manufacturing, pharmaceuticals, energy and employment creation.
The 24-Hour Economy policy was designed to encourage businesses and public institutions to operate in three eight-hour shifts, supported by incentives such as cheaper electricity, tax relief, financing arrangements and improved security.
Its broader objective is to increase production, strengthen import substitution and expand export capacity.
The New Economy framework, meanwhile, identifies priority sectors for investment and proposes a financing structure to support their development.
In principle, the two could complement each other, with the New Economy providing investment support for productive sectors while the 24-Hour Economy creates incentives for businesses to expand operations and production.
However, government will need to explain how the two frameworks will be coordinated, particularly in terms of project selection, financing, institutional responsibilities and measurable outcomes.
The 24-Hour Economy Authority Bill was signed into law in February 2026, providing an institutional framework for the policy. Government has also announced initial implementation measures, including a downstream petroleum pilot.
What remains important is a clearer account of the progress made so far, including the number of businesses that have introduced additional shifts, the incentives provided and the jobs created.
How will the $10 billion programme be financed?
The proposed financing structure is one of the most significant aspects of the New Economy framework.
Government intends to commit 1.5% of GDP annually between 2027 and 2030, amounting to approximately US$10 billion over the four-year period.
An additional 0.5% of GDP is expected to come from revenue measures, while government also proposes reducing the primary surplus target from 1.5% to 0.5% of GDP to create additional fiscal space.
The approach is intended to mobilise more domestic revenue while allowing government to allocate a larger share of available resources to productive investment.
However, the financing arrangement raises questions about the specific projects that will receive funding, the role of private-sector capital and development partners, and how government will ensure that the additional expenditure delivers measurable economic returns.
There are also questions about the fiscal implications of reducing the primary surplus target and how government intends to maintain debt sustainability while increasing investment spending.
What should businesses and investors expect from the 2027 Budget?
The November 12 Budget presentation will be important in determining how the broad ambitions of the New Economy framework translate into concrete policy measures.
Businesses and investors will be looking for details on the projects government intends to finance, the allocation of resources across the seven pillars, implementation timelines and the incentives available to private-sector participants.
The Budget will also need to clarify how the New Economy will build on existing programmes, including the 24-Hour Economy, and what lessons government has drawn from earlier industrialisation initiatives.
Ultimately, the success of the US$10 billion programme will not be determined by the amount of money government intends to mobilise, but by what that investment delivers.
Increased production, stronger local industries, higher agricultural productivity and sustainable job creation will be the real measures of its success.
For now, the New Economy framework provides a broad direction for Ghana’s next phase of economic development. The 2027 Budget must provide the details that will determine whether that ambition can translate into lasting structural change.
Source: Citi
