Ghana is targeting real Gross Domestic Product (GDP) growth of at least 5.2 per cent in 2027, with the government expecting stronger private-sector investment, improved access to financing and expanding economic activity to support the next phase of growth.
The projection, contained in the 2027 Budget Statement presented by Finance Minister Dr Cassiel Ato Forson, comes as private-sector credit recorded a significant recovery during the first nine months of 2026, supported by easing inflation and lower lending rates.
The government expects the improvement in macroeconomic conditions to translate into increased bank lending to businesses, stronger investment and employment opportunities across productive sectors.
“Private sector credit growth is expected to strengthen over the medium term, supported by sustained macroeconomic stability, easing inflationary pressures, declining interest rates, and improved banking sector fundamentals, and rising business confidence,” Dr Forson stated in the budget.
The government further expects increased demand for financing to stimulate lending to businesses and households, supporting private-sector investment and economic growth.
Credit Recovery Improves Business Financing Prospects
Private-sector credit flows reached GH¢32.8 billion in September 2026, representing a 34.0 per cent increase, compared with GH¢12.7 billion and growth of 15.1 per cent during the corresponding period in 2025.
Outstanding private-sector credit also increased to GH¢129.5 billion at the end of September 2026, from GH¢96.6 billion a year earlier.
In real terms, private-sector credit growth accelerated to 27.3 per cent, compared with 5.2 per cent in September 2025, reflecting stronger lending activity and the moderation in inflation.
The improvement comes alongside a reduction in borrowing costs. The average commercial bank lending rate declined to 15.9 per cent in October 2026, from 22.2 per cent in October 2025, while the Monetary Policy Rate fell to 14.0 per cent in September 2026, from 21.5 per cent a year earlier.
The Finance Minister said the developments demonstrate the growing transmission of monetary policy easing to the broader financial system, creating more favourable financing conditions for businesses and households.
“These developments demonstrate the strengthening transmission of monetary policy easing to the broader financial system, creating more favourable financing conditions for businesses and households and supporting the recovery in private-sector credit and productive economic activity,” he said.
The declining cost of borrowing is expected to improve the ability of businesses to finance expansion, acquire equipment and increase production, although the extent to which lower policy rates translate into affordable credit for smaller enterprises remains important.
Manufacturing And Mining Expected To Attract Investment
The government also expects Ghana’s mining and manufacturing industries to play an important role in attracting foreign direct investment over the medium term.
The budget indicates that improving investor confidence and the country’s credit ratings could also encourage foreign private capital through portfolio and other investment channels.
“The mining and manufacturing sectors will continue to drive improvements in foreign direct investment, while the portfolio and other investments accounts are expected to attract more foreign private capital as the country’s credit ratings continue to improve,” Dr Forson stated.
The outlook forms part of the government’s broader ambition to diversify economic activity, strengthen domestic production and increase the contribution of non-oil sectors to growth.
Under the 2027 macroeconomic targets, non-oil real GDP growth is projected at 5.7 per cent, above the overall growth target of 5.2 per cent.
The government expects continued expansion in infrastructure, services and agriculture to support the overall growth projection, while maintaining average real GDP growth of at least 5.0 per cent between 2027 and 2030.
Industrial Programmes Create Opportunities For Businesses
The budget also outlines several interventions intended to expand private-sector participation in manufacturing, agribusiness and export-oriented industries.
Government plans to invest US$1 billion in transforming the textile and garment industry, including the modernisation of textile mills, expansion of garment factories and development of dedicated industrial enclaves.
The programme will also involve partnerships with private investors, improved production infrastructure and commercial arrangements to connect local manufacturers to regional and international markets.
In agribusiness, the government intends to roll out cottage industries across selected value chains, including shea, cashew, rice, cassava, oil palm, fruits, fish and local textiles.
The programme will equip 20 processing units, train approximately 1,000 young people and register 300 enterprise groups in 2027.
Government is also working to secure strategic investors for the Akosombo Industrial Company, Komenda Sugar Factory, Northern Star Tomato Company and Volta Star Textiles, to restore the facilities to full production.
Meanwhile, the Ghana Free Zones Authority is expected to issue 72 new enterprise licences in 2027, following the licensing of 73 enterprises in 2026.
Existing Free Zones activities generated US$1.45 billion in exports and attracted US$143.4 million in capital investment, while creating 18,393 direct jobs.
Growth Outlook Depends On Investment Translating Into Production
The 2027 projections present an improving financing environment and a stronger investment outlook as important conditions for expanding private-sector activity.
However, the increase in credit and the reduction in lending rates will need to translate into productive investment, higher industrial output and sustainable job creation to support the government’s ambitions.
The budget’s medium-term strategy places considerable emphasis on converting macroeconomic stability into higher productivity, stronger domestic industries and increased private investment.
The government has set an overall real GDP growth target of 5.2 per cent for 2027, with non-oil growth projected at 5.7 per cent. Meeting these targets is tied to continued improvements in financing conditions and increased investment inflows.
