Govt to invest US$10bn in nine sectors under New Economy Policy, with no borrowing - Mahama

President John Dramani Mahama announced that the government will allocate US$10 billion over five years to nine key sectors of the economy through a proposed New Economy Policy. This investment will be an annual US$2 billion commitment, solely sourced from domestic revenue without borrowing any funds. The sectors targeted for growth and job creation include textiles and garments, agriculture and agribusiness, pharmaceuticals, and tourism.

Mahama revealed this during a visit by Western North Region chiefs, where he outlined the government's economic recovery measures. Reflecting on the country's economic progress, he noted that the IMF predicted Ghana's growth rate at 5.7 per cent, which is higher than the average forecast of 4 per cent for sub-Saharan Africa. The IMF's prediction came just the day before Mahama's announcement, and he highlighted that Ghana continued to experience robust growth despite external pressures, such as rising petroleum prices due to tensions between Iran and Israel.

He emphasized that the government is operating within its means, financing all investments through taxes and revenue brought into the Exchequer. Mahama also pointed out that reducing domestic borrowing has alleviated pressure on the banking sector, with Treasury bill rates dropping significantly from around 29 per cent to approximately 7 per cent.

This change has made borrowing more affordable for private companies, encouraging them to invest, expand, and create more jobs. The construction industry, in particular, has already contributed substantially to employment growth through the Big Push infrastructure program. Additionally, a textile factory in northern Ghana, partly funded by the Ghana Export-Import Bank, produces garments for export and employs 2,300 people, with 80 percent of the workforce being women.

The factory operates under the 24-hour economy model. To further strengthen the pharmaceutical industry and reduce dependence on imported medical products, Mahama announced plans to establish a vaccine production hub in Ghana. This initiative is part of the Accra Reset, which aims to achieve health sovereignty and break the cycle of dependency.

Foreign pharmaceutical companies have shown interest in a pharmaceutical hub that the government has acquired land for, along with infrastructure like roads, electricity, and water.