Finance Minister tells investors Ghana’s economic gains are sustainable, not superficial

Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has assured international investors that the country’s economic recovery is genuine and driven by deep, structural reforms rather than short-term measures.

Speaking during engagements on the sidelines of the 2026 IMF/World Bank Spring Meetings, Dr. Forson emphasised that recent improvements in Ghana’s economy are the result of deliberate policy actions backed by legislation and disciplined implementation.

“These are not cosmetic gains. They are outcomes of well-thought-through reforms, backed by laws and disciplined implementation,” he stated.

The Minister outlined a wide range of fiscal and structural measures introduced to stabilise the economy and rebuild investor confidence. Among them is an aggressive expenditure rationalisation drive, including a significant reduction in the size of government, with the number of ministers cut from 123 to 60.

He also highlighted the enforcement of a strict commitment authorisation system to strengthen spending controls across Ministries, Departments and Agencies (MDAs), as well as amendments to the Public Financial Management (PFM) Act. These amendments introduce new fiscal rules, including a 1.5 per cent primary surplus target and a 45 per cent debt ceiling.

To deepen accountability, government has established oversight bodies such as an independent Fiscal Council and an Office of Value for Money to improve efficiency and reduce waste in public spending.

Dr. Forson further pointed to reforms in public funds management, including the uncapping of statutory funds to better align spending with national priorities, alongside changes to the Petroleum Revenue Management Act to prioritise infrastructure development.

On the revenue front, he noted ongoing reforms in tax administration, including adjustments to the refund system and broader VAT and customs reforms aimed at plugging leakages and boosting domestic revenue mobilisation.

Policy changes have also been introduced in key sectors such as mining and petroleum, with royalties restructured to support large-scale infrastructure financing. In the energy sector, the implementation of a cash waterfall mechanism is helping to improve financial flows and sustainability.

Additional measures include payroll audits and verification exercises to eliminate inefficiencies, as well as the rationalisation of government programmes to reduce duplication and improve targeting.

The cocoa sector has also undergone restructuring through COCOBOD to enhance efficiency, while social protection programmes have been expanded to support vulnerable groups.

Beyond reforms, the Minister highlighted improvements in Ghana’s macroeconomic indicators. Economic growth has surpassed expectations, supported by strong performance in the services and agriculture sectors, while inflation continues to decline steadily due to tight monetary policy, fiscal consolidation, and a strengthening cedi.

He also noted a significant improvement in the country’s external position, driven by strong gold and cocoa exports, as well as increased international reserves, which have exceeded targets under the IMF-supported programme.

“These reforms have translated into tangible market outcomes,” Dr. Forson said, citing declining domestic and Eurobond yields and recent sovereign rating upgrades as evidence of renewed investor confidence.

He added that Ghana’s public debt outlook has improved considerably, with debt restructuring nearing completion and the country remaining current on its debt obligations.

Investors at the meeting reportedly welcomed the government’s reform agenda, praising the depth of policy measures and the progress made in restoring economic stability.

Looking ahead, Dr. Forson reaffirmed government’s commitment to sustaining the recovery through continued reforms, fiscal discipline, and targeted investments.

“The gains we achieved in 2025 provide a solid platform for continued recovery and policy predictability,” he said. “Our focus now is to consolidate these gains, strengthen confidence, and build a more resilient and inclusive economy.”