Ghana’s Finance Minister, Cassiel Ato Forson, has assured international investors that the country’s economic recovery is substantive and firmly rooted in structural reforms, dismissing suggestions that recent gains are superficial.
Speaking during high-level engagements on the sidelines of the IMF/World Bank Spring Meetings in Washington, Dr. Forson stressed that Ghana’s progress is the result of deliberate policy choices, legislative backing, and disciplined implementation.
“These are not cosmetic gains,” he emphasised. “They reflect well-structured reforms supported by law and sustained execution.”
The Minister detailed a sweeping reform agenda aimed at restoring macroeconomic stability and rebuilding investor confidence. A key highlight is the government’s aggressive expenditure rationalisation, including a significant downsizing of ministers from 123 to 60 as part of efforts to cut waste.
He also pointed to strengthened expenditure controls through a mandatory commitment authorisation system across public institutions, alongside amendments to the Public Financial Management Act. These reforms have introduced new fiscal anchors, including a 1.5 percent primary surplus target and a 45 percent debt ceiling.
To deepen accountability, government has established independent oversight bodies such as a Fiscal Council and an Office of Value for Money to improve spending efficiency and curb misuse of public funds.
Further reforms include the uncapping of statutory funds to better align expenditures with national priorities and amendments to the Petroleum Revenue Management Act to prioritise infrastructure investment. On the revenue front, ongoing tax administration reforms—covering VAT, customs, and refund systems—are aimed at plugging leakages and boosting domestic revenue mobilisation.
Sector-specific interventions have also been rolled out. In the extractive industries, royalty frameworks have been restructured to support infrastructure financing, while in the energy sector, a cash waterfall mechanism has been introduced to enhance financial sustainability.
Additional measures, including payroll audits and programme rationalisation, are targeting inefficiencies within government systems. The cocoa sector has undergone restructuring to improve operations, while social protection programmes have been expanded to shield vulnerable groups.
Dr. Forson noted that these efforts are yielding measurable results. Economic growth has surpassed expectations, driven largely by services and agriculture, while inflation continues to ease amid tight monetary policy and fiscal consolidation, supported by a strengthening cedi.
Ghana’s external position has also improved significantly, buoyed by strong gold and cocoa exports and increased foreign reserves, which have exceeded targets under the IMF-supported programme.
“These reforms are translating into real market confidence,” he said, pointing to declining domestic and Eurobond yields, as well as recent sovereign rating upgrades.
He added that Ghana’s debt outlook has improved considerably, with restructuring nearing completion and the country maintaining timely debt service.
Investors at the meetings reportedly welcomed the government’s “reset agenda,” praising both the depth of reforms and the visible progress in stabilising the economy.
Looking ahead, the Finance Minister reaffirmed government’s commitment to sustaining the recovery through continued fiscal discipline, deeper structural reforms, and strategic investments.
“The progress made in 2025 provides a strong foundation for stability and predictability,” he noted. “Our priority now is to consolidate these gains and build a more resilient, inclusive economy.”
He further assured that Ghana will strengthen its resilience against global shocks by diversifying exports, reinforcing fiscal buffers, enhancing energy security, and improving market efficiency.
By: Christian Kpesese
