What to Know About Mahama’s $10 Billion New Economy Programme

• Finance Minister Dr. Cassiel Ato Forson is set to present the 2027 Budget to Parliament on Thursday, November 12, 2026
• The government's New Economy programme targets $10 billion in investment across seven priority sectors between 2027 and 2030
• Questions remain over how the programme will be financed and how it relates to the existing 24-Hour Economy policy

The government is preparing to shift its economic strategy from stabilisation towards production and industrial growth, ahead of the presentation of the 2027 Budget to Parliament on Thursday, November 12, 2026.

The move follows a period of measurable macroeconomic progress, including the completion of the final review under the International Monetary Fund (IMF) programme in July 2026, economic growth of 6.0% recorded in the second quarter of the year, and a decline in annual inflation to 5.2% in September.

At the heart of the government's next phase is the New Economy programme, a four-year investment framework running from 2027 to 2030.

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Announced by President John Mahama, the initiative aims to channel the gains made during economic recovery into increased domestic production, value addition and job creation.

The programme is organised around seven priority pillars. These are:

1. Macroeconomic stability
2. Commercial agriculture and agro-processing
3. Energy sector reform
4. Critical minerals and value addition
5. Cotton and textiles
6. Tourism and the creative economy, and
7. Pharmaceuticals manufacturing.

The government intends to mobilise approximately US$10 billion across these sectors over the four-year period.

Young people, farmers, local manufacturers and agribusinesses are among those expected to benefit, though the actual scale of impact will depend on project selection, resource allocation and delivery.

Financing and Fiscal Questions

The proposed financing structure is among the most closely scrutinised aspects of the framework. Government plans to commit 1.5% of GDP annually between 2027 and 2030, with an additional 0.5% of GDP expected from new revenue measures.

It also proposes reducing the primary surplus target from 1.5% to 0.5% of GDP to create additional fiscal headroom for productive investment.

Questions persist over how private capital and development finance institutions will participate, and whether reducing the primary surplus target is consistent with maintaining debt sustainability over the same period.

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A key area of interest is how the New Economy framework will interact with the government's existing 24-Hour Economy policy, which encourages businesses and public institutions to operate across three eight-hour shifts through incentives including cheaper electricity, tax relief and financing support. The 24-Hour Economy Authority Bill was signed into law in February 2026.

Both initiatives share overlapping priorities in agriculture, manufacturing, pharmaceuticals and employment. In principle, the New Economy could provide sectoral investment while the 24-Hour Economy creates operational incentives for businesses to expand. Government will need to clarify how the two frameworks will be coordinated, including which institutions will lead implementation and how outcomes will be measured.

Source: YEN.com.gh