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Business & Economy

Ghana’s Economy Set to Expand as Economist Lauds Significant Rise in Capital Expenditure in 2026 Budget

Economist Dr. Paul Appiah Konadu praises the 2026 Budget’s major rise in capital expenditure, from GH¢33 billion to GH¢57.5 billion, saying investments in roads and farm infrastructure will unlock economic growth, stabilize debt, and boost market access.

Has Gov’t Justified Its Commitment to Being Fiscally Prudent After IMF Exits in 2026? An Economist’s View
Dr. Paul Appiah Konadu. Economist, Academic City University
Fredrick Addai Kwarteng
Nov 16, 2025

Economist and lecturer at the Academic City University, Dr. Paul Appiah Konadu, has indicated that one of the most profound standouts in the 2026 Budget is the significant increase in the government’s planned capital expenditure (CAPEX).

This, the economist says, signals something different, which is real investment, real projects, and real opportunities to open up the country.

For many Ghanaians, road projects and big infrastructure ideas often feel like political slogans and promises repeated every election year but rarely felt in real life. But Dr. Appiah Konadu says it seems the 2026 fiscal year will change the narrative, judging from the allocations in the budget.

Speaking on the government’s 2026 Budget to The High Street Journal, Dr. Appiah Konadu said the dramatic jump in capital expenditure, from GH¢33 billion in 2025 to a projected GH¢57.5 billion next year, is one of the clearest signs that Ghana is preparing for serious economic expansion.

And for him, he noticed that the government is not just spending, but spending on critical and strategic projects that have the capacity to impact lives, create jobs, and expand the economy. This, he notes, is about spending smarter.

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He noted that nearly GH¢30 billion of this new capital allocation is being channelled into what the government calls its “big push”, major national infrastructure plans, including the Accra-Kumasi Expressway, along with several key roads, bridges, and public works across the country.

Ghana's Economy Set to Expand as Economist Lauds Significant Rise in Capital Expenditure in 2026 Budget

“That is very progressive, and that will open up the economy. We are able to make all these investments in our road network, in our bridges, that will open up the economy,” he emphasized.

Opening Markets, Easing Movement, and Unlocking Growth

Dr. Konadu explained that when roads improve, everything else follows. Farmers reach markets faster, transport costs fall, businesses expand, and communities that once felt cut off begin to grow.

A striking part of the plan is the construction of 1,000 kilometres of farm roads. To him, this alone could transform rural economies by making it easier to move produce from remote farming areas to major markets, reducing food losses, and helping to stabilise prices.

This, he admits, that when farmers are able to move their goods easily, everybody benefits. Food can become cheaper, traders grow, and farmers earn more.

He said, “Under infrastructure, we also seek to construct about 1,000 kilometres of rural farming roads, which will open up these areas to market centres, facilitate the transportation of food products, which is another beautiful thing in this budget.”

Ghana's Economy Set to Expand as Economist Lauds Significant Rise in Capital Expenditure in 2026 Budget

Borrowing Needs Fall as Stability Improves

Beyond the physical roads and bridges, Dr. Konadu also highlighted a positive trend in the country’s overall budget balance. Ghana is expected to reduce its deficit from 2.8% in 2025 to 2.2% in 2026.

The economist sees this as a step toward lowering borrowing and ensuring long-term debt sustainability.

He believes this is a laudable direction, adding that the goal is to eventually move into a surplus on a commitment basis, meaning the country would spend only what it earns.

“That is the way to go,” he noted, adding that it shows that the government is building stability even as it invests.

Ghana's Economy Set to Expand as Economist Lauds Significant Rise in Capital Expenditure in 2026 Budget
Dr. Cassiel Ato Forson, Minister for Finance

The Bottomline

What makes this shift important, according to the economist, is that it links the budget to visible, practical outcomes. This includes better roads, easier movement, and stronger local economies. It gives ordinary Ghanaians something they can point to, something they can physically experience.

In a country where infrastructure has long lagged behind population growth and business expansion, Dr. Konadu believes the renewed focus on capital spending could mark a turning point.

With the government reducing its deficit, controlling inflation, and stabilising the cedi, Dr. Konadu argues that Ghana is in a better place to invest boldly and wisely to open the economy.

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