President John Dramani Mahama says the government will invest US$10 billion over five years in nine key sectors of the economy under its proposed New Economy Policy to accelerate job creation and expand economic opportunities.
He said the initiative, which will receive US$2 billion annually, would target productive sectors capable of creating jobs, including textiles and garments, agriculture and agribusiness, pharmaceuticals and tourism.
President Mahama said the investment would be financed with domestic resources rather than borrowing, as the government seeks to sustain economic recovery and create more employment opportunities for Ghanaians.
“When the Minister presents the 2027 Budget, he is going to announce what we call the New Economy Policy. The policy has selected nine areas, or nine pillars, in which the government is going to invest about US$2 billion every year for five years. That is a total of US$10 billion,” he said.
“As I have said, this is our own money. We are not going to borrow money for the New Economy Policy.”
The President made the announcement during a courtesy call by chiefs from the Western North Region, where he outlined the government’s economic recovery measures and plans to expand employment through private-sector growth and industrialisation.
He said the economy had begun recovering from the debt default and economic crisis that confronted the government when it assumed office on January 7, 2025.
According to him, the International Monetary Fund had projected Ghana’s economic growth at 5.7 per cent, above the average forecast of about four per cent for sub-Saharan Africa.
“Just yesterday [Friday], the IMF predicted that we would grow at 5.7 per cent,” he said, adding that the country continued to record strong economic growth despite external pressures, including rising petroleum prices linked to tensions between Iran and Israel.
President Mahama said the government’s fiscal measures had helped stabilise the macroeconomy and reduce interest rates, creating conditions for businesses to access credit and expand their operations.
He explained that the government’s reduced reliance on domestic borrowing had eased pressure on the banking sector and encouraged financial institutions to lend more to private businesses.
“Today, the government is living within its means, and everything we are financing is being financed from our taxes and what the government brings into the Exchequer,” he said.
He added that the government was no longer borrowing from domestic banks or international credit markets, allowing banks to redirect funds towards businesses.
President Mahama said Treasury bill rates had declined from about 29 per cent to approximately seven per cent, making it more attractive for banks to lend to private companies seeking to expand.
“It is better for them to lend at about 13 per cent to a private company. That is going to enable private companies to invest, expand their businesses and employ more people,” he said.
The President said the construction industry was already creating substantial employment opportunities through the government’s Big Push infrastructure programme.
He cited the growing demand for skilled workers, including excavator operators, civil engineers, masons and steel benders, as evidence of the employment opportunities emerging from ongoing road and building projects.
“The construction industry alone has created hundreds of thousands of jobs because of the Big Push and the money the government is putting into infrastructure,” he said.
Beyond construction, he said the government was encouraging investments in manufacturing and other job-rich sectors.
He cited a textile manufacturing factory established in northern Ghana with support from the Ghana Export-Import Bank, which produces garments for export to the United States and European markets.
According to the President, the factory employs 2,300 people, about 80 per cent of whom are women, and operates under the 24-hour economy model.
He said the facility was creating employment opportunities for young women who might otherwise have migrated to major cities to engage in head porterage, popularly known as kayayei.
President Mahama also cited production-line expansions by companies such as Nestlé and Kasapreko as examples of businesses increasing their operations and employing more workers.
He said the government would continue to create an enabling environment for businesses to expand while directing public investment towards sectors with the potential to generate sustainable employment.
Under the New Economy Policy, he said, the government would also invest in pharmaceutical manufacturing to position Ghana as a production hub serving West Africa and the wider African market.
He disclosed that foreign pharmaceutical companies had expressed interest in establishing facilities at a pharmaceutical hub for which the government had acquired land and provided essential infrastructure, including roads, electricity and water.
The President said the initiative was part of a broader strategy to build a productive economy, reduce dependence on imports and create employment for young people.
He expressed optimism that the combined impact of infrastructure spending, industrial expansion and targeted investments under the New Economy Policy would accelerate job creation and improve livelihoods.
Source: Citinewsroom
