Ghana Restoring Investor Confidence Through Reforms
By Praisebell Rosemond Larbi
Deputy Minister for Finance, Thomas Ampem Nyarko, has outlined Ghana’s economic recovery trajectory, highlighting renewed investor confidence driven by macroeconomic stability and ongoing structural reforms.
Speaking at a high-level business forum held at the Mövenpick Ambassador Hotel, themed “Building Confidence in Ghana’s Business Climate Taxation, Forex and Investment Outlook,” Mr. Nyarko stressed that confidence remains the cornerstone of economic growth.
“When confidence rises, capital moves. Factories expand. Jobs appear. That is why this forum matters,” he told policymakers, investors, and development partners gathered at the event.
He explained that investor decisions are fundamentally anchored on predictability, policy credibility, and pricing certainty, areas where Ghana has made significant progress in recent months. “Today, Ghana can answer these questions with greater confidence than at any time in recent years,” he added.
Mr. Nyarko pointed to strong macroeconomic indicators as evidence of the turnaround. Ghana’s economy expanded by 6 percent in 2025, up from 5.7 percent in 2024, while inflation declined sharply to 3.3 percent after 14 consecutive months of easing from a peak of 54 percent in 2022.
External buffers have also strengthened considerably. Gross international reserves rose to $14.5 billion as of March 2026, providing 5.8 months of import cover, compared to $8.9 billion and 3.9 months in December 2024. “Over just a year, Ghana’s reserves have surged by more than 60 percent. This is a strong signal of restored external stability and policy credibility,” he noted.
The country’s trade position has equally improved, with a surplus of $3.7 billion recorded in the first two months of 2026, up from $2.1 billion during the same period in 2025 and just $392 million in 2024.
To sustain these gains, government has introduced the Ghana Accelerated National Reserve Accumulation Programme (GANRAP), targeting reserves equivalent to 8.6 months of import cover by end-2026 and 15 months by 2028.
On fiscal policy, Mr. Nyarko highlighted a shift toward efficiency and transparency. The 2026 budget projects total revenue and grants of GH¢268.1 billion, with non-oil tax revenue expected to reach GH¢216.1 billion. “Less harassment, more efficiency, more transparency, more certainty,” he said, underscoring the role of technology in improving tax compliance.
Fiscal consolidation remains a priority, with government targeting a primary surplus of 1.5 percent of GDP and an overall deficit of 2.2 percent, while maintaining expenditure at 18.9 percent of GDP.
Foreign exchange conditions have also stabilised significantly. The Ghana cedi appreciated by over 40 percent against the US dollar in 2025, reversing earlier depreciation trends. In response to improving conditions, the Bank of Ghana has reduced its policy rate to 14 percent, with lending rates easing to 19.2 percent from over 30 percent a year earlier.
Mr. Nyarko emphasised that Ghana is now targeting quality, long-term investment that drives job creation, strengthens value chains, and supports industrialisation.
“We are not interested in attracting just any capital. We want capital that creates jobs, deepens local value chains, transfers knowledge, and positions Ghana as a production base and logistics hub,” he said.
He added that Ghana’s reform momentum has earned renewed confidence from international institutions such as the International Monetary Fund and the World Bank.
While acknowledging ongoing global risks, including commodity price volatility and geopolitical tensions, Mr. Nyarko expressed confidence in Ghana’s ability to withstand external shocks.
“Confidence is like electricity. When absent, everything slows down. But when it returns, the whole economy lights up,” he said, urging the private sector and development partners to play an active role in sustaining the country’s economic recovery.
