An assessment of fiscal discipline, agricultural transformation, road infrastructure and the quest for economic stability.
Story By: Alexander Kukah
Ghana’s economic recovery has become one of the defining issues of national debate as the National Democratic Congress (NDC) government approaches its second anniversary in office. Since assuming power in January 2025, President John Dramani Mahama’s administration has placed what it describes as an economic reset at the centre of its development agenda, promising to restore fiscal discipline, strengthen productive sectors, improve infrastructure and rebuild confidence in the economy.
The administration inherited an economy confronted by significant fiscal pressures, high inflation, debt-sustainability concerns and a difficult external financial environment following the tenure of the New Patriotic Party (NPP).
Against this background, the NDC government has sought to reposition the economy through a combination of fiscal consolidation, monetary stabilisation, agricultural interventions and renewed investment in infrastructure.
Nearly two years into the administration, the critical question is no longer simply what government promised to do, but what has actually been achieved, what remains outstanding and whether the changes being recorded are translating into better living conditions for Ghanaians.
Available economic indicators point to improvements in several areas. However, the sustainability of these gains, their distribution across the population and their impact on employment and household welfare deserve closer examination.
Economic recovery: What do the indicators tell us?
One of the most significant developments in Ghana’s economic performance has been the improvement in key macroeconomic indicators.
According to the Ministry of Finance’s 2025 Annual Public Debt Report, Ghana’s real Gross Domestic Product (GDP) growth increased to 6 per cent in 2025, compared with 5.8 per cent in 2024. Inflation also declined substantially, from 23.8 per cent in December 2024 to 5.4 per cent in December 2025.
These developments suggest an improvement in the country’s macroeconomic environment.
The International Monetary Fund (IMF), following its July 2026 assessment, reported that Ghana’s economy grew by 6.4 per cent year-on-year in the first quarter of 2026. It also reported that inflation stood at 5.3 per cent in June 2026, while the country’s primary fiscal balance recorded a surplus of 2.1 per cent of GDP in 2025.
More recent information from the Ghana Statistical Service indicates that headline inflation stood at 5.2 per cent in September 2026, while GDP growth for the second quarter was recorded at 6 per cent.
These figures provide an important basis for assessing the economic reset agenda.
However, declining inflation should not be confused with falling prices. It means that prices are increasing at a slower rate. For households that experienced substantial increases in food, transportation, rent and utility costs in previous years, the real test is whether incomes are improving sufficiently to restore purchasing power.
Similarly, GDP growth must be examined in relation to employment creation, business expansion and improvements in household welfare.
Economic stability is important, but its ultimate value lies in how effectively it supports productive activity and improves people’s lives.
Fiscal discipline: Restoring confidence in public financial management
Fiscal discipline is one of the central pillars of the government’s economic reset agenda.
Ghana’s debt challenges and public expenditure pressures have demonstrated the consequences of allowing government spending, borrowing and revenue mobilisation to move away from sustainable levels.
The NDC administration has therefore placed emphasis on expenditure controls, improved revenue mobilisation, debt management and strengthening public financial management.
The IMF’s July 2026 assessment acknowledged improvements in Ghana’s fiscal position and progress in debt restructuring. It also highlighted the importance of maintaining fiscal discipline, strengthening domestic revenue mobilisation and improving oversight of state-owned enterprises.
The 2026 Budget also reported a substantial decline in the domestic Treasury bill rate, from approximately 29 per cent at the beginning of 2025 to around 10.6 per cent by October 2025. The government presented this as evidence of improving confidence in the domestic financial market and reduced short-term borrowing costs.
These developments are relevant because high government borrowing costs can place pressure on the public purse and limit the resources available for development expenditure.
Nevertheless, fiscal discipline must go beyond reducing expenditure or achieving favourable budget figures.
It must involve ensuring that public resources are used efficiently, government contracts deliver value for money, revenue leakages are addressed and development projects are completed within reasonable timelines.
The challenge ahead is to sustain fiscal consolidation without undermining investment in education, healthcare, agriculture, infrastructure and social protection.
The real measure of fiscal discipline should be a government that spends responsibly, invests strategically and delivers measurable public value.
Agriculture: Can Feed Ghana transform food security?
Agriculture occupies a strategic position in Ghana’s economic development because of its relationship with food security, employment, rural livelihoods and industrial growth.
The government’s Feed Ghana Programme represents an attempt to reposition agriculture as a major driver of economic transformation.
The programme seeks to increase domestic food production, reduce dependence on imported food commodities, strengthen food security and create opportunities across the agricultural value chain.
In August 2026, the Information Services Department reported the Agriculture Minister’s claim that food inflation had declined from 28.3 per cent in January 2025 to 2.2 per cent in April 2026, with the minister attributing the improvement partly to increased domestic food production under the Feed Ghana Programme.
This is an encouraging development, although the contribution of the programme should be assessed alongside other factors influencing food prices, including weather conditions, transportation costs, exchange-rate movements, imports and market supply.
Agriculture must also be evaluated beyond food inflation.
How many additional farmers have benefited from government interventions? What improvements have been recorded in maize, rice, poultry, vegetables and other strategic commodities? How much investment has gone into irrigation, mechanisation, storage and agro-processing?
These questions matter because Ghana’s agricultural transformation cannot depend solely on seasonal production increases.
We need a modern agricultural economy supported by technology, improved seeds, irrigation, reliable extension services, accessible financing and efficient distribution systems.
The country also needs stronger links between farmers and agro-processing industries to reduce post-harvest losses and create value within the domestic economy.
Feed Ghana should therefore be assessed by its ability to improve productivity, increase farmers’ incomes, create sustainable employment and reduce the country’s exposure to imported food supplies.
Agriculture must become a commercially attractive sector in which young people can build careers and profitable enterprises.
Road infrastructure: The Big Push and the development agenda
Road infrastructure remains another important component of the government’s economic reset programme.
Poor road networks increase transportation costs, restrict access to markets, delay the movement of goods and services and undermine economic activities, particularly in rural communities.
The government’s Big Push Infrastructure Programme is intended to address some of these challenges through investment in major roads, bridges and urban transport infrastructure.
According to a Ghana News Agency report published in July 2026, government had commenced 87 transport infrastructure projects across all 16 regions. These comprised 74 trunk roads and bridges, 10 urban road projects and three feeder roads.
The report further indicated that, by the end of June 2026, 13 projects had achieved at least 50 per cent completion, including six that had exceeded 75 per cent completion.
Among the projects cited were the Kasoa-Winneba, Takoradi-Agona Junction, Ofankor-Nsawam, Adentan-Dodowa and Tema-Aflao roads, as well as the Suame Interchange Phase II and the Kumasi Outer Ring Road.
These investments have the potential to improve connectivity, facilitate trade and strengthen access to economic opportunities.
However, the number of projects commenced is not necessarily the same as the number of projects completed.
Ghanaians must be able to assess the actual progress of construction, the quality of work, the availability of funding and the extent to which contractors are meeting agreed timelines.
There must also be transparency about the financial commitments associated with these projects and the government’s capacity to sustain their implementation.
Road infrastructure should not become an exercise in awarding contracts and making announcements. Its real value lies in completed roads that reduce travel time, improve safety, connect farming communities to markets and lower the cost of doing business.
The Big Push programme must ultimately be judged by the roads delivered and the economic benefits they generate.
The cedi, business confidence and the cost of living
Another important area in assessing the government’s economic performance is the stability of the Ghanaian cedi.
Currency depreciation has historically affected Ghanaian businesses and households through higher import costs, increased production expenses and pressure on the prices of goods and services.
The Ministry of Finance reported that the cedi appreciated by more than 40 per cent against the US dollar in 2025, with further gains into 2026. It also reported improvements in Ghana’s international reserves.
Currency stability can help businesses plan, reduce imported inflationary pressures and improve confidence in the domestic economy.
However, exchange-rate appreciation must be supported by sustainable economic fundamentals, including export competitiveness, foreign-exchange earnings, investment and prudent fiscal and monetary policies.
The challenge is to ensure that the gains are not temporary and that businesses can operate in a predictable economic environment.
For ordinary Ghanaians, the most important question remains whether improvements in the exchange rate are translating into affordable goods and services.
A stable cedi is important, but it must ultimately contribute to improved purchasing power and a stronger productive economy.
Employment and the challenge of inclusive growth
Perhaps the most important test of the economic reset agenda is its impact on employment.
Economic growth, lower inflation and improved fiscal indicators are encouraging, but they do not automatically translate into decent jobs or improved livelihoods.
Ghana continues to face structural employment challenges, particularly among young people, graduates and those seeking opportunities in the formal economy.
The Ghana Statistical Service reported an unemployment rate of 13 per cent in the third quarter of 2025. Its national statistics also highlighted continuing food insecurity and other household welfare concerns.
This reinforces the need for economic policies that go beyond macroeconomic stability.
Government must create an environment in which private businesses can expand, industries can employ more people and young entrepreneurs can access financing, technology and markets.
Agriculture, manufacturing, construction, tourism, information technology and the creative economy all have the potential to generate employment.
However, this requires deliberate investment in skills development, technical education, vocational training and entrepreneurship.
It also requires employers to provide decent working conditions and opportunities for professional advancement.
The economic reset must therefore be judged not only by the performance of financial indicators but also by the extent to which ordinary citizens experience meaningful improvements in their economic circumstances.
The challenges that remain
While several economic indicators have improved, it would be premature to suggest that Ghana’s economic difficulties have been completely resolved.
The IMF, in its July 2026 assessment, identified the need for continued fiscal discipline, stronger domestic revenue mobilisation, improved public financial management and enhanced oversight of state-owned enterprises.
It also highlighted the importance of safeguarding central bank independence and addressing vulnerabilities within parts of the financial sector.
These concerns demonstrate that economic recovery is an ongoing process rather than a single achievement.
Government must also address the concerns of businesses regarding access to credit, energy costs, taxation, infrastructure and the general cost of doing business.
For households, the priorities remain affordable food, reliable healthcare, decent housing, employment opportunities and improved incomes.
There is also the question of how economic gains are distributed across the regions and between different income groups.
A national economic recovery cannot be considered fully inclusive if its benefits are concentrated in selected sectors while significant sections of the population continue to struggle.
The government must therefore maintain transparency in reporting its achievements and acknowledge areas where implementation has fallen short.
The MTI perspective: Beyond economic statistics to national transformation
The Mindset Transformation Initiative (MTI) believes that Ghana’s economic reset must be understood within a broader national development framework.
Fiscal discipline, agricultural transformation, infrastructure development and economic stability are important foundations. However, sustainable national development also requires a change in how we think about productivity, public responsibility, entrepreneurship and the use of national resources.
Government alone cannot transform the economy.
The private sector must become a stronger partner in national development. Businesses must invest, innovate and create employment. Farmers must be supported to increase productivity. Artisans and technical professionals must be equipped to meet modern industry standards.
Young people must be encouraged to embrace skills development, entrepreneurship, discipline and productive work.
Public institutions must demonstrate accountability, efficiency and commitment to delivering results.
Most importantly, national development must become a shared responsibility rather than an undertaking left exclusively to political leadership.
The MTI position is that economic transformation requires both sound policies and the right national mindset.
We must move away from a culture that places excessive emphasis on political promises and instead develop one that values measurable outcomes, institutional accountability and sustained productivity.
The verdict must be in the results
As the NDC government approaches its second anniversary, Ghana’s economic performance presents a picture of improving macroeconomic indicators alongside continuing structural and social challenges.
The reported improvements in GDP growth, inflation, fiscal balances and exchange-rate stability provide important evidence of economic progress. The Feed Ghana Programme and Big Push infrastructure investments also represent significant policy interventions whose long-term outcomes deserve continued monitoring.
Nevertheless, the ultimate test of the economic reset will be whether these developments translate into sustainable employment, increased industrial production, higher household incomes, improved food security and better living conditions.
The government must demonstrate that economic recovery is not merely reflected in statistical reports and official presentations but is visible in markets, farms, factories, businesses and communities across the country.
Equally, the opposition, civil society organisations, the media and independent economic institutions have a responsibility to scrutinise government performance objectively, recognising achievements while drawing attention to shortcomings.
Ghana’s development must transcend political party interests.
The country’s economic future depends on the ability of successive governments to build on sound policies, strengthen institutions and pursue long-term national priorities.
The NDC administration has presented its economic reset as a new direction for Ghana. The responsibility now is to sustain the gains, address the outstanding challenges and ensure that the recovery benefits the wider population.
For MTI, the central issue is not simply whether the economy is growing, but whether Ghana is building an economy that creates opportunities, rewards productivity, supports enterprise and improves the quality of life of its people.
Ghana needs more than an economic recovery. It needs a productive, competitive, disciplined and inclusive economy capable of delivering sustainable prosperity for present and future generations.
The national conversation must therefore move beyond political claims and counterclaims towards a shared commitment to economic transformation.
Story By: Alexander Kukah
