Mahama’s New Economy: Agriculture to take half of US$10bn investment
Agriculture and agro-processing are expected to receive the largest share of President John Dramani Mahama’s New Economy programme, with US$5 billion earmarked for the sector as government prepares to redirect economic resources towards production and job creation.
The four-year initiative, covering 2027 to 2030, was initially announced as a US$10 billion investment across seven priority areas. These include commercial agriculture and agribusiness, energy reforms, critical minerals processing, textiles and garments, tourism and the creative arts, pharmaceutical manufacturing, and macroeconomic stability.
The agricultural allocation is intended to support irrigation, year-round farming, increased food production and agro-processing. Government has pointed to projects such as the tomato revitalisation initiative and rehabilitation of processing and irrigation facilities as part of its efforts to reduce food imports and expand opportunities for farmers.
The other pillars seek to address constraints affecting local industries. Plans include expanding domestic processing of minerals, strengthening pharmaceutical production, reviving the textile industry and improving energy supply to manufacturers. Tourism and the creative economy are also expected to receive investment as government seeks to diversify economic activity and generate employment.
Financing the programme
The funding plan has since received further clarification from Finance Minister Dr Cassiel Ato Forson. Speaking at an engagement at the Kwame Nkrumah University of Science and Technology on November 10, he said government would allocate 1.5 per cent of GDP annually from 2027 to 2030, potentially providing at least US$13 billion over the period.
He said the resources would come from two sources: revenue measures equivalent to 0.5 per cent of GDP and fiscal space created by reducing the primary surplus target from 1.5 per cent to 0.5 per cent of GDP. The minister insisted that the programme would not require additional government borrowing.
The difference between the original US$10 billion announcement and the later US$13 billion estimate will be important as government presents the detailed financing framework in the 2027 Budget. The precise allocations to individual sectors, projects and implementing institutions will also determine how the proposed investment is delivered.
Relationship with the 24-Hour Economy
The New Economy programme shares several objectives with the government’s 24-Hour Economy policy, particularly expanding manufacturing, increasing domestic production and creating jobs.
While the New Economy identifies sectors for investment, the 24-Hour Economy is intended to encourage businesses to increase production through extended operating hours and additional work shifts. Their effectiveness will depend partly on access to affordable financing, reliable electricity, infrastructure and markets.
The November 12 Budget presentation is therefore expected to provide a clearer picture of how the two initiatives will work together, which projects will receive priority and how government intends to measure their impact.
Ultimately, the programme’s success will depend not simply on the amount of money committed, but on whether the investment expands productive capacity, strengthens Ghanaian businesses and generates sustainable employment.
Source: CNR
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