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Mahama Unveils Eight-Pillar Economic Strategy to Reset Ghana’s Economy

Beyond his initial 120-day social contract with Ghanaians, President John Dramani Mahama has outlined a bold eight-pillar strategy aimed at revitalising Ghana’s economy and setting the country on a path to long-term, sustainable growth.

Speaking at the Ghana CEO Summit in Accra on Monday, May 26, under the theme “Leading Ghana's Economic Reset: Transforming Business and Governance for a Sustainable Futuristic Economy,” President Mahama presented a comprehensive blueprint focused on fiscal discipline, restoring investor confidence, and mobilising strategic investments.

Below is a breakdown of the eight key pillars of Mahama’s economic transformation agenda:

1. Completing the IMF Programme with Discipline

President Mahama underscored the need to maintain strict fiscal discipline in government spending and borrowing while working towards targets set under the extended IMF programme.

President Mahama, in his address, anticipates the completion of the deal in June 2025 with an exit from the programme by 2026, which he believes is possible through adherence to strict fiscal discipline.

2. Reopening Domestic and International Capital Markets

President Mahama noted that plans have been put in place to reopen Ghana’s bond markets through collaboration with the IMF, the Ghana Stock Exchange, and local banks.

This, according to President Mahama, will ensure that future borrowing will be linked to self-financing projects by government agencies to ensure sustainable repayment.

3. Strengthening Sovereign Funds and Local Government Financing

The government, under President John Dramani Mahama is set to amend financial regulations to enforce mandatory contributions to sinking and stabilization funds, ensuring financial security.

Additionally, Mahama envisions empowering municipalities to issue infrastructure bonds for local development, including roads, schools, and water systems.

4. Clearing Verified Arrears and Rationalising Public Investments

A comprehensive audit of government arrears is underway, with plans to clear legitimate debts transparently. New projects will be prioritised based on need, funding availability, and alignment with national interests.

5. Accelerating Public Financial Management Reforms

To enhance financial efficiency, the administration will reactivate reforms like the Treasury Single Account (TSA), integrated tax administration, and real-time budgeting tools to curb waste and corruption.

6. Revitalising Exports Through Ghana Exim Bank

The Ghana Exim Bank will be repositioned to boost non-traditional exports, agro-processing, light manufacturing, and SMEs, enhancing foreign exchange reserves while creating jobs in the real economy.

7. Building Ghana into a Regional Hub for Trade and Investment

Ghana aims to become West Africa’s premier commercial, transport, and digital services hub. Key sectors such as port expansion, financial services, healthcare, education, and industrial corridors will be strengthened to connect local businesses with the African Continental Free Trade Area.

8. Resuming Infrastructure Development to Stimulate Growth

Mahama stressed that infrastructure investments are essential for economic growth. His administration will prioritise roads, energy, water, housing, and urban renewal projects through innovative financing models like the Big Push, public-private partnerships (PPPs), and strategic collaborations.

Source : Kobina Darlington/Peacefmonline