2027 Budget: Inside Mahama’s US$10bn New Economy programme

As Finance Minister Dr Cassiel Ato Forson prepares to present the 2027 Budget to Parliament on Thursday, November 12, 2026, the government is positioning its proposed New Economy framework as the next phase of Ghana’s economic transformation, with a stronger emphasis on production, industrial expansion and job creation.

The shift follows progress under the country’s economic recovery programme, including the completion of the final review of Ghana’s International Monetary Fund (IMF) programme in July 2026, economic growth of 6.0% in the second quarter and a reduction in annual inflation to 5.2% in September.

With these developments, the government is seeking to move beyond short-term economic stabilisation towards addressing structural weaknesses, expanding domestic production and strengthening the country's capacity to generate jobs and foreign exchange.

The broader ambition is to improve Ghana’s credit standing, create a more favourable environment for investment and potentially reduce borrowing costs while increasing access to long-term financing for businesses.

The New Economy framework is built around seven priority areas. The government proposes to mobilise approximately US$10 billion over four years to support investment across these sectors

Macroeconomic stability is the foundation of the New Economy framework. The government intends to preserve the gains made in stabilising the economy and maintain a fiscal environment that supports investment, business expansion and sustainable growth.

Maintaining lower inflation, fiscal discipline and a stable economic environment is expected to provide businesses with greater certainty when making investment and expansion decisions.

Agriculture and agro-processing are central to the programme, with the government seeking to increase domestic food production, expand processing capacity and reduce Ghana’s dependence on imported food.

The focus also includes oil palm production and other commercial agricultural activities capable of creating jobs across farming, processing, storage and distribution.

The broader objective is to strengthen agricultural value chains and ensure that more of the value generated from agricultural production is retained within the country.

Reliable and affordable energy is essential to industrial expansion and business competitiveness.

This pillar focuses on reforms and investment aimed at addressing challenges in the energy sector and improving power supply for businesses, manufacturers and other productive activities.

Improved energy reliability and affordability could help reduce operating costs, support industrial growth and make Ghana a more attractive destination for investment.

The government intends to increase domestic processing of Ghana’s critical minerals rather than depend predominantly on exporting raw materials.

The objective is to retain more economic value locally, develop processing industries, strengthen industrial capacity and create additional employment opportunities.

Greater investment in local mineral processing could also support technology transfer and expand Ghana’s participation in global mineral value chains.

The New Economy framework also targets the revival and expansion of Ghana’s textile and garment industry.

Increased local production could support manufacturing, create jobs and strengthen domestic supply chains.

The sector could also benefit from stronger links between local cotton production, textile processing and garment manufacturing, helping to develop a more integrated industry.

The government intends to expand the contribution of tourism, culture and the creative economy to national output and foreign exchange earnings.

This pillar includes strengthening Ghana’s tourism and hospitality industries while creating opportunities for businesses and workers in the creative sector.

Investment in these areas could support employment in accommodation, transport, entertainment, arts and other related services.

The proposed pharmaceutical manufacturing hub is intended to strengthen local production of essential medicines and reduce Ghana’s dependence on imported pharmaceutical products.

Beyond meeting domestic demand, the initiative could position Ghana as a regional supplier of pharmaceutical products, provided it receives the necessary infrastructure, investment, technology and regulatory support.

The framework identifies several groups that could benefit from increased investment in productive sectors.

Young people are expected to gain employment opportunities across commercial agriculture, manufacturing, textiles, pharmaceuticals and the creative industries.

Farmers and agribusinesses could benefit from improved access to infrastructure such as irrigation systems, storage facilities, transportation networks and processing centres as the government seeks to strengthen agricultural value chains.

Local manufacturers and businesses could also benefit from improved access to financing, more reliable energy and measures designed 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 projects selected, the allocation of resources and the effectiveness of implementation.

One of the key questions surrounding the New Economy framework 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 is 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, on the other hand, identifies priority sectors for investment and proposes a financing structure to support their development.

In principle, the two initiatives 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 their operating hours and production.

However, the government will need to explain how the two frameworks will be coordinated, particularly regarding 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. The government has also announced initial implementation measures, including a downstream petroleum pilot.

Businesses and the public will be looking for 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.

The proposed financing structure is one of the most significant aspects of the New Economy framework.

The government intends to commit 1.5% of gross domestic product (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 the 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 the government to allocate a larger share of available resources to productive investment.

However, the proposed financing arrangement raises important questions about which projects will receive funding, the role of private-sector capital and development partners, and how the government will ensure that additional expenditure delivers measurable economic returns.

There are also questions about the fiscal implications of reducing the primary surplus target and how the government intends to maintain debt sustainability while increasing investment spending.

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 the 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 the government has drawn from previous industrialisation initiatives.

Ultimately, the success of the proposed US$10 billion programme will not be determined solely by the amount of money the government intends to mobilise, but by the results that investment delivers.

Increased production, stronger local industries, higher agricultural productivity, improved export capacity 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 transformation.