Economy

The Government of Ghana has signed a debt restructuring agreement with Belgium as part of its ongoing efforts to stabilize the country’s public finances following the severe economic crisis of 2022–2023. Highlighting on the significance of the agreement, the Minister for Finance, Dr. Cassiel Ato Forson, having recalled the difficult period Ghana endured during the crisis, explained that Ghana is nearing the completion of its external debt restructuring programme, adding that the agreement with Belgium marks another important milestone.  “Ghana went through a very difficult period in 2022–2023. It was a financial crisis and the government of the day had to declare a default,” the minister said. Today we are recovering and seeing a significant turnaround, and we are putting systems in place to ensure we do not return to that situation again.” Dr. Forson also expressed gratitude to the Government and people of Belgium for their cooperation and support throughout the restructuring process. Also passing her remarks on the agreement ,Belgium’s Ambassador to Ghana, Carole van Eyll, reaffirmed her country’s commitment to supporting Ghana as it navigates the aftermath of the economic crisis. She stated that Belgium was pleased to have concluded the restructuring agreement and commended Ghana’s efforts to restore macroeconomic stability. “We are happy to continue supporting Ghana, and we are pleased that this restructuring has been concluded,” Ambassador van Eyll said. She added that Belgium looks forward to strengthening cooperation with Ghana in the years ahead as the country continues on its path of economic recovery. The debt restructuring agreement with Belgium will see Belgium being the eighth Official Creditor Committee (OCC) country with which Ghana has concluded a bilateral debt restructuring agreement.

President John Dramani Mahama has declared smuggling, under-declaration, counterfeit goods, and the re-bagging of inferior products as economic sabotage, signaling a tougher stance against practices that undermine the local industry. Delivering his address during the Presidential Dialogue with the Private Sector, President Mahama indicated that trade infractions will no longer be treated as minor offences, but as economic crimes, with public officers found culpable facing dismissal and prosecution. He emphasized that safeguarding Ghanaian enterprises is critical to industrial growth, noting that stronger enforcement will help local businesses thrive and expand. “Smuggling, under-declaration, counterfeit goods and re-bagging of inferior products are not minor infractions. They constitute economic sabotage. To stem this tide and protect our fledgling manufacturing sector, we will intensify coordinated border enforcement, treat trade infractions as economic crimes, dismiss and prosecute public officers found culpable, deploy technology-driven customs surveillance solutions, and rigorously enforce product standards. This government is determined to protect Ghanaian enterprises so they can thrive and grow,” the President said. President Mahama also stressed that economic stabilisation alone will not deliver long-term development, announcing that he has set a national target for manufacturing to contribute at least 15% of GDP by 2030, supported by the creation of about 500,000 quality industrial jobs. He explained that the current level of industrial activity is insufficient to drive large-scale employment and export competitiveness. “But let me be clear, stabilisation is not equal to transformation. For over five decades, Ghana’s manufacturing sector has contributed around 10% to GDP. Meanwhile, emerging Asian economies starting from a similar basis have achieved a manufacturing share of 20% to 30% of GDP, creating mass employment and export competitiveness. We need to change our trajectory. I’ve therefore set a national target: manufacturing must contribute at least 15% of GDP by 2030. Supported by 500,000 new quality industrial jobs, this will require structural reform and not incremental adjustments,” he said. The dialogue, introduced by the President as part of his campaign promises, forms part of a broader strategy to accelerate economic transformation and strengthen industrial competitiveness in Ghana.

The Government of Ghana has announced a strong fiscal performance and broad-based macroeconomic turnaround for 2025, describing the period as one of the most significant economic turnarounds in the country’s recent history. In a statement issued on Monday, February 23, 2026, authorities stated the economy bounced back following difficulties faced in 2024 such as inflation being as high as 23.8 percent , a primary balance deficit of 3.0 percent of GDP and a a 91-day Treasury bill rate of 27.7 percent. Government attributed the economic turnaround to fiscal discipline, commitment controls, deepened structural reforms, and prudent monetary policy. The statement indicated that the primary balance on a cash basis recorded a surplus of 0.5 percent of GDP, while the overall fiscal balance on the same basis posted a deficit of 3.1 percent of GDP. On a commitment basis, the primary balance improved to a surplus of 2.6 percent of GDP, with the overall fiscal balance registering a deficit of 1.0 percent of GDP. According to the statement, these outcomes were driven by reforms in revenue mobilisation and tighter expenditure control. Adding to fiscal consolidation efforts, 2025 recorded one of the sharpest debt reductions in Ghana’s history, with public debt declining from GH¢726.7 billion in December 2024 to GH¢641.0 billion ,representing an 11.8 percent reduction. Beyond fiscal consolidation, the statement also highlighted improvements in key macroeconomic indicators, including a provisional real GDP growth of 6.1 percent year-on-year in the first three quarters of 2025, stronger non-oil growth of 7.5 percent over the same period, and inflation easing to 3.8 percent by the end of January 2026. The period also saw a sharp decline in interest rates, with the 91-day Treasury bill rate dropping from 27.7 percent at end-2024 to 6.5 percent in February 2026, reducing government borrowing costs and freeing up credit for the private sector. The average commercial bank lending rate similarly fell from 30.25 percent in 2024 to 20.45 percent in 2025. Credit to the private sector expanded by GH¢17.1 billion in 2025, with further growth expected in 2026. The Ghanaian cedi appreciated against major currencies, gaining 40.7 percent against the United States dollar, 30.9 percent against the Pound sterling, and 24.0 percent against the Euro by the end of December 2025. Ghana’s external position also strengthened, with the current account recording a surplus of US$9.1 billion, up from US$1.5 billion in 2024, while gross international reserves rose to US$13.8 billion which is enough to cover about 5.7 months of imports. Government says it is committed to building on these achievements to create employment opportunities and support long-term economic growth and transformation.