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

Storu By: Deborah Adorsu

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.

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 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.
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.

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, 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.

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 the 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 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.