President Mahama Unveils Bold 8-Point Economic Reset Strategy for Ghana’s Financial Revival

President John Dramani Mahama has announced an ambitious eight-point economic transformation strategy designed to revitalize Ghana’s economy and restore international investor confidence. Speaking at the prestigious Ghana Chief Executive Officer Summit in Accra, the President outlined a comprehensive roadmap that promises to reset the nation’s financial trajectory through disciplined fiscal management and strategic reforms.

Ghana’s Economic Recovery: A Strategic Blueprint for Sustainable Growth

The President’s economic reset plan addresses critical challenges facing Ghana’s economy, from fiscal discipline to infrastructure development. This bold initiative comes at a crucial time when the West African nation seeks to strengthen its position as a regional economic powerhouse while maintaining responsible financial governance.

1. IMF Programme Completion: Disciplined Path to Financial Independence

President Mahama emphasized his unwavering commitment to completing Ghana’s current International Monetary Fund (IMF) programme with strict adherence to fiscal discipline. The administration targets completing the fourth review by June 2025, with a strategic exit planned for 2026.

Following the programme’s completion, Ghana will transition to a non-borrowing relationship under the IMF’s Policy Support Instrument (PSI), marking a significant milestone in the country’s journey toward financial independence and sustainable economic management.

2. Capital Markets Reopening: Unlocking Investment Opportunities

The government plans to strategically reopen both domestic and international bond markets through collaborative partnerships with key stakeholders, including:

• The International Monetary Fund
• International development partners
• Ghana Stock Exchange
• Local financial institutions

Importantly, future borrowing will be exclusively tied to commercially viable, self-financing projects implemented through Ministries, Departments, Agencies (MDAs), Metropolitan, Municipal and District Assemblies (MMDAs), and State-Owned Enterprises (SOEs).

Financial Reforms and Infrastructure Development

3. Sovereign Funds Strengthening: Building Fiscal Resilience

To ensure long-term fiscal stability, President Mahama announced plans to amend both the Public Financial Management Act and Ghana’s constitution. These amendments will make contributions to the Sinking and Stabilization Funds mandatory, creating a robust financial safety net for the nation.

Additionally, the administration will empower local governments to issue infrastructure bonds, enabling districts to independently fund critical projects, including roads, schools, and water systems.

4. Arrears Clearance: Transparent Financial Management

The Auditor General is currently finalizing a comprehensive audit of government arrears and commitments. Upon receiving this report, the administration will begin transparently clearing legitimate arrears while implementing stricter commitment controls to prevent future accumulation.

New project approvals will be based on three key criteria:

• National development priorities
• Available funding sources
• Strategic economic value

5. Public Financial Management: Combating Waste and Corruption

President Mahama pledged to intensify public financial management reforms to eliminate waste and corruption. Recent amendments to the Public Financial Management Act (PFMA) include crucial fiscal responsibility clauses.

Future reform efforts will focus on reactivating essential systems such as:

• Treasury Single Account (TSA)
• Integrated Tax Administration System
• Real-time budgeting and monitoring tools

Economic Diversification and Growth Strategies

6. Export Revitalization: Ghana Exim Bank Transformation

The government plans to reposition the Ghana Export-Import Bank to focus on promoting non-traditional exports, including:

• Agro-processing industries
• Light manufacturing sectors
• Small and Medium Enterprises (SMEs) support

This strategic shift is expected to significantly boost the real economy’s foreign exchange earnings while creating substantial employment opportunities across various sectors.

7. Regional Trade Hub: West Africa’s Economic Gateway

President Mahama envisions transforming Ghana into West Africa’s premier hub for trade, digital services, transport, and finance. This ambitious plan includes strategic investments in:

• Port expansion and modernization
• Financial services infrastructure
• Healthcare and education facilities
• Industrial corridors connecting Ghanaian businesses to African Continental Free Trade Area (AfCFTA) opportunities

8. Infrastructure Development: Smart Financing for Growth

Recognizing infrastructure as a crucial catalyst for economic recovery, the President committed to resuming priority infrastructure projects across multiple sectors, including roads, energy, water, and urban development.

Crucially, these projects will be funded through innovative financing strategies rather than traditional borrowing:

• Public-Private Partnerships (PPPs)
• The proposed Big Push initiative
• Strategic international partnerships

The Path Forward: Ghana’s Economic Transformation

President Mahama’s eight-point economic reset strategy represents a comprehensive approach to addressing Ghana’s economic challenges while positioning the country for sustainable long-term growth. By combining fiscal discipline with strategic investments and innovative financing mechanisms, this plan aims to restore investor confidence and strengthen Ghana’s position as a regional economic leader.

The success of this ambitious economic reset will depend on effective implementation, transparent governance, and continued commitment to the outlined principles of fiscal responsibility and sustainable development