As Ghana marks the first anniversary of President John Dramani Mahama’s second inauguration on January 7, 2025, business leaders, economists and everyday Ghanaians are reflecting on a year defined by economic stabilisation, major policy shifts and renewed investor confidence. Departing from an era of macroeconomic distress inherited from the previous administration, President Mahama’s government has sought a decisive “reset” of Ghana’s economy, anchored on fiscal discipline, private-sector incentives and infrastructure programmes that collectively signal a new chapter in Ghana’s growth story.
■ Macroeconomic Renewal
Upon assuming office, President Mahama faced an economy burdened with inflation above 23 per cent, depreciating currency pressures and low investor confidence. In response, the administration implemented comprehensive fiscal reforms with clear targets: reduce inflation, stabilise the cedi and restore fiscal credibility. By late 2025, inflation declined sharply to single digits, a milestone that boosted consumer purchasing power and reduced borrowing costs across the economy.
A cornerstone of Ghana’s rebound was renegotiating debt obligations and managing a dignified exit from the International Monetary Fund (IMF) programme, emphasising partnership rather than dependency. Government officials have noted improvements in domestic and foreign direct investment, highlighting renewed confidence among international partners and capital markets.
■ Tax Reforms & Business Environment
To catalyse private sector activity, the Mahama administration and Finance Minister Dr. Cassiel Ato Forson implemented significant tax and fiscal reforms. In a budget designed to spur business growth in 2025, several nuisance and cost-burden taxes were abolished, including the electronic levy (e-levy), betting tax and emissions tax, while VAT reliefs were introduced, such as a reduced VAT rate, restoration of VAT input deductions and zero-rating textiles until 2028. These moves were designed to lower the cost of doing business and attract investment into productive sectors.
The administration also raised the VAT threshold to GH¢750,000, easing pressure on small and medium-sized enterprises (SMEs), and reinvigorated SME financing mechanisms through targeted support and access to affordable credit.
■ Infrastructure & the “Big Push”
Recognising that physical connectivity underpins economic activity, the government launched the “Big Push” infrastructure initiative, allocating billions in public investment to rehabilitate critical road networks, dualise highways and expedite long-standing public works projects. Over 2,000 km of roads were either under rehabilitation or completed, significantly improving national connectivity and facilitating commerce between urban centres and rural markets.
In addition to transport infrastructure, the administration has prioritised energy stability, restoring reliable electricity supply and expanding rural electrification to over 1,000 communities ; an investment seen as pivotal for rural SMEs and agro-industries.
■ Policy Innovation & Private Sector Activation
A signature policy of Mahama’s first year was the “24-Hour Economy” strategy, aimed at transforming Ghana’s economic tempo by encouraging industries, institutions and public utilities to operate around the clock to boost productivity, create jobs and facilitate export-oriented manufacturing. Originally outlined in early 2025, the strategy signalled a bold shift towards a business-friendly, dynamic economic model capable of competing globally.
Complementing this, the government unveiled a five-point action plan for entrepreneurs focusing on affordable financing, modern infrastructure, SME tax incentives, reduced cost of credit and reorientation of the financial sector toward productive investment, a plan that places private sector growth at the heart of national development.
■ Challenges & Outlook
While the first year has yielded promising indicators including inflation control, currency stability and improved economic growth analysts caution that external vulnerabilities remain, particularly commodity price volatility and the need for deeper economic diversification. Nevertheless, robust growth figures and enhanced investor sentiment point to a gradual reinvigoration of Ghana’s economic prospects.
Looking ahead to 2026, the government has pledged to accelerate digitalisation programmes, universal health coverage, national food security initiatives and social housing projects, while intensifying the fight against corruption as a catalyst for increased accountability and institutional trust.
Author: Edem Latsu Nukafu
Edem Latsu Nukafu, a passionate communications professional dedicated to public relations, journalism, media strategy, and content development. He holds both a Diploma and Bachelor of Arts Degree in Communication Studies (Public Relations) from the University of Media, Arts and Communication – UniMAC-IJ. A member of Ghana Journalists Association (GJA).
