President John Mahama has put economic recovery and fiscal reform at the center of his administration’s first major media engagement, presenting data that shows inflation has fallen to its lowest level in four years, investor confidence is returning, and billions of cedis are being channeled directly into local development projects.
Speaking eight months into his term, Mahama positioned his government’s policies as a reset for Ghana’s economy, anchored on decentralization, infrastructure investment, and reforms to ease the cost of doing business while expanding opportunities for households and enterprises.
The president said macroeconomic stability was returning, citing inflation’s drop from 23.8 percent in December 2024 to 11.5 percent in July 2025, the lowest in four years. Exchange rate pressures, he added, had eased while the cost of doing business was declining, signaling relief for enterprises and households. Global credit rating agency S&P recently upgraded Ghana’s risk profile from “junk” to B-minus, a development Mahama described as proof that confidence was rebounding.
Fiscal decentralization and local investment
A centerpiece of Mahama’s update was fiscal decentralization. District assemblies, which for years received only partial disbursements of the District Assemblies Common Fund, are now receiving 80 percent of allocations directly. Of the GHS 7.57 billion allocated for 2025, about GHS 6.1 billion has gone straight to local governments, with each assembly guaranteed at least GHS 25 million.
The president said Cabinet had also approved guidelines to ensure the funds address key priorities: 25 percent for 24-hour economy model markets, 10 percent for health facilities including two CHPS compounds per district, and additional earmarks for schools, boreholes, sanitation and furniture. A further 20 percent is reserved for completing stalled projects.
Infrastructure and energy
Mahama announced the launch of the “Big Push” infrastructure program, beginning with the road sector. Nearly GHS 14 billion from oil and gold revenues has been earmarked for critical projects this year, including the Ofankor and Suame roads, which recently received GHS 1 billion to accelerate completion.
On energy, he confirmed approval of a second gas processing plant (GPP2), expected to double processing capacity, cut reliance on expensive liquid fuels, and save Ghana around $500 million every two years. The project, he said, will also create more than 1,000 jobs and reinforce stable power supply, a major concern for businesses.
Education and skills
Education spending has been increased, with GHS 3.5 billion committed to free SHS and $564.6 million for textbooks. The government is rolling out the “No-Fee Stress” policy, refunding admission fees to 120,000 first-year tertiary students and linking it to expanded student loan schemes. Free tertiary education for persons with disabilities has also begun.
Meanwhile, programs such as One Million Coders, the “Adjumara” initiative, and a National Apprenticeship scheme are being positioned as engines for skills development and digital transformation.
Health and social spending
Health spending rose 13.4 percent in 2025 to GHS 17.8 billion, with a 66 percent increase in funding for the National Health Insurance Scheme. An additional GHS 2 billion has been earmarked for new and upgraded hospitals. The Ghana Medical Trust Fund, seeded with GHS 50 million, was launched to help citizens cover the cost of chronic diseases.
Governance and resource management
The president also pledged stronger anti-corruption measures, highlighting ongoing prosecutions and a new code of conduct for public officials. In natural resources, government has stepped up action against illegal mining, reclaiming nine forest reserves and tracking over 1,000 excavators to curb environmental damage.
Investor sentiment and outlook
Mahama said the reforms were already filtering into the real economy, pointing to falling consumer prices and businesses advertising price cuts. He argued that the combination of fiscal discipline, structural reforms, and targeted investment in infrastructure and skills would sustain confidence and drive long-term growth.
“We are not here to continue business as usual,” he told the media. “We are resetting Ghana, restoring the soul of our nation, reviving its economy, and reigniting hope.”
