President John Mahama said Ghana has stabilized its economy without resorting to external borrowing, pointing to improved fiscal balances, a stronger currency, and expenditure reforms as evidence of progress.
Answerung questions by journalists in his engagement with the media, he described the government’s decision to avoid the international capital markets as deliberate. “We’ve survived without borrowing. All we’ve done is reorder expenditure and push funds to priority areas,” he said.
Ghana’s fiscal position has improved, with the primary balance shifting from a deficit of 3.4 percent in 2024 to a surplus of 1.1 percent this year, on track to reach 1.5 percent by year-end. Mahama credited fiscal discipline, including cuts to non-essential political spending, for restoring confidence in the economy.
The cedi’s recent appreciation, he noted, reflects these reforms but warned against overvaluation. Importers have benefited from cheaper foreign exchange, while exporters have faced tighter margins. The government, he said, aims to keep exchange rate movements within a 5 percent annual margin to support business planning.
Mahama also revealed investigations into $42 billion in foreign exchange transfers over the past four years that were not backed by corresponding imports. He said sanctions against banks and individuals involved were under consideration.
On utilities, the President stressed that recent proposals for steep tariff increases would undergo review by the Public Utilities Regulatory Commission (PURC). “The fact that a company proposes 200 percent does not mean PURC will allow it,” he said, assuring businesses and households that affordability would remain central to decisions.
Beyond fiscal and monetary management, Mahama touched on wider economic drivers. In tourism, he pledged the dualization of the Accra–Cape Coast road to cut travel times and attract investment in the Central Region’s attractions. But he warned that poor service delivery remained a barrier to growth. “Government will provide infrastructure, but the private sector must improve service standards if we want to attract more tourists and their spending,” he said.
The President also reiterated his condemnation of assaults on journalists and called for stronger collaboration between the Ghana Journalists Association and security agencies.
With reforms underway in wages, trade, and public finance, Mahama said the government’s priority is consolidation rather than new borrowing. “We should consolidate before we look at external financing,” he said.
