Economist, Dr. Theo Acheampong, says the “good news” in the 2026 Budget is expected to quietly send positive signals to the country’s financial markets.
The economist believes that the consolidation of economic stability, clarity, and the path to real economic activity are good signals to the foreign exchange, Eurobond and the local capital markets.
Dr. Theo Acheampong anticipates that after the 2026 Budget has been read, the cedi will continue its strong run, the Eurobond market might be favourable, and local markets to respond positively in the coming days.
The economist, in his reaction, enumerated some reasons for these anticipated positive sentiments.
A Budget That Finally Connects the Big Picture to Daily Life
In his analysis of the budget that was read to parliament on Thursday, the economist explained that for years, businesses and households have felt a gap between the government’s claims of “macroeconomic stability” and the reality on the ground.
This budget, Dr. Acheampong notes, makes a conscious effort to close that gap.
Beyond the big numbers, the economist says the government is signalling reforms that make it easier for the private sector to breathe, from reducing cost pressures to improving the business environment. Projects like the Accra–Kumasi tolled expressway and the Ekye Amanfrom–Adawso Bridge point to infrastructure that boosts productivity rather than drains the budget.
As experts say, markets love signs that private investment can return in a real way, and this budget finally nods in that direction.
“There is also a clear attempt to link the macro-micro disconnect. Macro stability has improved faster. The emphasis is further on micro/business-environment reforms needed for sustained private investment and household consumption,” he noted.
VAT Reforms That Actually Ease Pressure
One of the biggest challenges for businesses was the VAT structure. Businesses have bemoaned its complexities and cascading effect. But Dr. Acheampong recognizes that the structure is being softened.
He says the effective VAT rate drops from 21.9% to 20%, will ease costs, especially for SMEs already struggling with inflation. The VAT registration threshold also jumps from GH¢200,000 to GH¢750,000, meaning many small businesses can operate without the extra tax burden.
And he adds a cherry on top, which is the COVID-19 levy, long criticised by businesses as an unnecessary leftover, is finally gone. Lower taxes plus clearer rules generally equal a friendlier business climate, and the economist believes the markets will respond well where the real sector is given room to grow.
He said, “COVID-19 levy has been scrapped and VAT regime is being harmonised through 1. abolishing VAT on reconnaissance and prospecting of minerals; 2. Reduction of the effective VAT rate by 190 basis points from 21.9% to 20%; increase in the VAT registration threshold from GH¢200,000 to GH¢750,000 — inflation-linked increase in real terms.”
Smarter Use of Oil Wealth Sends a Strong Signal
Dr. Theo Acheampong also maintains that the government’s intention to make better use of Ghana’s oil-backed sovereign wealth fund, directing parts of it into commercially viable energy sector projects, is a smart move, especially for investors tracking Ghana’s long-term resilience.
Instead of draining the fund, the government wants it to generate returns locally. That reduces future borrowing pressures, strengthens confidence, and reassures investors that the country is thinking long-term.
Why Investors Are Poised to React Positively
According to Dr. Acheampong, the 2026 budget signals clarity, discipline, and growth direction.
He is very hopeful that the FX market, Eurobond investors, and the local capital market will likely welcome the 2026 Budget because it balances stability with a clear path to growth.
“Overall, I expect the markets (FX, Eurobonds, local capital markets) to react positively to the budget numbers in the coming days,” he concluded.
If markets respond as expected, Ghana may enjoy a short-term boost in confidence, something the economy needs as it continues to rebuild.
