Govt to invest US$10bn in nine sectors under New Economy Policy, with no borrowing - Mahama

President John Dramani Mahama has announced that the government will invest US$10 billion over five years in nine key sectors of the economy under a 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.

“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.”

He made the announcement during a courtesy call by chiefs from the Western North Region, where he outlined the government’s economic recovery measures.

President Mahama said the economy had begun recovering from the debt default and economic crisis that confronted the government when it assumed office on 7 January 2025. According to him, the International Monetary Fund (IMF) had projected growth of 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 growth despite external pressures, including rising petroleum prices linked to tensions between Iran and Israel.

“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 said reduced reliance on domestic borrowing had eased pressure on the banking sector, with Treasury bill rates falling from about 29 per cent to approximately seven per cent.

“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.

Jobs from construction and manufacturing

The President said the construction industry was already creating substantial employment through the Big Push infrastructure programme.

“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.

He also cited a textile factory in northern Ghana, established with support from the Ghana Export-Import Bank, which produces garments for export to the United States and European markets. According to him, it employs 2,300 people, about 80 per cent of them women, and operates under the 24-hour economy model.

Vaccine hub and health sovereignty

President Mahama announced plans to establish a vaccine production hub in Ghana to strengthen the pharmaceutical industry and reduce dependence on imported medical products.

“We have learnt a lesson, and we want to produce our own vaccines and medicines,” he said.

Recalling the COVID-19 pandemic, he said: “We learnt a lesson from COVID-19. When vaccines became available, Africa was placed at the end of the queue. Everybody received vaccines before us.”

He added: “If God had not given us immunity that prevented COVID-19 from affecting us severely, the whole of Africa could have been wiped out before even one vaccine arrived here.”

The President said the effort forms part of the Accra Reset. “There are other issues we are working on, including the Accra Reset, which is aimed at achieving health sovereignty, investing in the health of our people and breaking the cycle of dependency,” he said.

He disclosed that foreign pharmaceutical companies had expressed interest in a pharmaceutical hub for which the government had acquired land and provided roads, electricity, and water.