Reform gains strengthen credibility, attract investor confidence
Finance Minister Cassiel Ato Forson says international investors are showing growing confidence in Ghana’s economic reset strategy, pointing to clear reform progress and improving macroeconomic indicators as signs of a credible recovery.
Speaking during engagements on the sidelines of the IMF/World Bank Spring Meetings 2026, Dr Forson noted a shift in investor sentiment, driven by what he described as a disciplined, law-backed reform programme. He said investors are increasingly convinced about the sustainability of the government’s policy direction.
“These are not cosmetic gains,” he stressed, dismissing suggestions that the recovery could be short-lived. “They are outcomes of well-thought-through reforms, backed by laws and disciplined implementation.”
Ghana’s economic reset has focused on fiscal consolidation and structural reforms aimed at restoring macroeconomic stability. A key component has been expenditure rationalisation, including a reduction in the size of government, with the number of ministers cut from 123 to 60.
The government has also strengthened public financial management by enforcing a commitment authorisation system across Ministries, Departments and Agencies to control spending and prevent the accumulation of arrears.
Revisions to the Public Financial Management Act have introduced binding fiscal rules, including a primary surplus target of 1.5 percent of GDP and a debt ceiling of 45 percent, aimed at reinforcing medium-term fiscal discipline.
To enhance oversight and accountability, authorities have established an independent Fiscal Council and an Office of Value for Money to improve efficiency in public spending.
Other reforms include the uncapping of statutory funds to better align expenditure with national priorities, as well as changes to petroleum revenue management to channel more resources into infrastructure development.
On the revenue front, the government has rolled out tax administration reforms to plug leakages, including adjustments to the refund system and broader VAT and Customs measures to boost domestic revenue mobilisation.
Sector-specific interventions have also been implemented. In the extractive sector, royalty regimes have been restructured to support infrastructure financing, while the energy sector has introduced a cash waterfall mechanism to improve financial sustainability.
Efforts to streamline public spending continue, with payroll audits and programme rationalisation underway to eliminate inefficiencies. The Ghana Cocoa Board has also undergone restructuring to improve operational performance, while social protection programmes have been expanded to cushion vulnerable groups.
Dr Forson said these reforms are beginning to yield results, with economic growth exceeding expectations, supported by strong performance in services and agriculture. Inflation, he added, is on a steady decline, aided by tight monetary policy, fiscal consolidation and a strengthening currency.
External buffers have improved as well, with increased gold and cocoa export earnings boosting reserves beyond targets set under Ghana’s IMF-supported programme.
The gains have also been reflected in financial markets, with domestic and Eurobond yields declining, alongside recent upgrades in sovereign credit ratings.
“These reforms have translated into tangible market outcomes,” he said, citing lower borrowing costs and renewed investor appetite for Ghanaian assets.
He further noted that Ghana’s debt trajectory has improved significantly following restructuring efforts, with the country remaining current on its debt servicing obligations—another factor supporting investor confidence.
According to the minister, feedback from investors at the meetings has reinforced the government’s narrative, with many highlighting the coherence of the reform agenda and visible progress in restoring economic stability and policy credibility.
He added that the government will focus on consolidating these gains through sustained fiscal discipline and continued structural reforms, while scaling up productive investments to drive inclusive growth.
“The gains we achieved in 2025 provide a solid platform for continued recovery and policy predictability,” Dr Forson said. “Our focus now is to consolidate these gains, strengthen confidence and build a more resilient and inclusive economy.”
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