Mahama Links Cedi Stability to $10bn New Economy Programme as 2027 Budget Unveils Jobs Agenda

President John Dramani Mahama has tied the future strength of the cedi to a proposed $10 billion, four-year New Economy Programme, saying the plan to expand domestic production and diversify exports will reduce Ghana's dependence on imports and ease pressure on the currency. Speaking at the Heritage Series banknote launch in Accra on Thursday, the President said the programme—anchored in the 2027 Budget presented to Parliament later the same day—would focus on producing more of what Ghana consumes and processing more of what it grows.

"The link to the cedi is clear. Expanding and diversifying our exports can bring in more foreign exchange. Producing more at home can reduce our dependence on imports," President Mahama stated at Bank Square . "Together with disciplined public finance and credible monetary policies, these measures will help create the conditions for a stronger, more stable cedi, better able to withstand any global shocks."

The President said the benefits of a stronger currency should be felt in everyday life. "For the trader, it should mean greater certainty when ordering their next consignment of supplies. For the manufacturer, it should give greater confidence when planning their production, for the family, it must be greater confidence that income and savings will meet their needs," he said .

A Programme Built on Nine Pillars

The New Economy Programme targets approximately $10 billion in investment over 2027–2030, disbursed at about $2 billion to $2.5 billion annually . It focuses on nine priority sectors: agriculture and agribusiness, textiles and garments, pharmaceuticals, tourism, manufacturing, commercial agriculture, hospitality, critical minerals and value addition, and the creative economy .

A central feature of the financing model is that it will be pursued without contracting new loans. Instead, the government plans to allocate an annual amount equivalent to 1.5% of GDP to the programme—0.5% from government revenue and 1% by reducing the primary surplus target from 1.5% to 0.5% of GDP, creating fiscal space while keeping public debt on a declining path . Finance Minister Dr Cassiel Ato Forson has said the strategy aims to bring public debt down to 45% of GDP by 2028 .

Economic Context: A Cedi Under Pressure

The President's optimism comes against a backdrop of persistent foreign exchange pressure. The cedi traded at approximately GH¢11.70 to the dollar on the interbank market this week, with Absa Bank Ghana's head of trading projecting continued pressure from services and commerce sector demand . The currency has depreciated roughly 10% against the dollar in 2026, though it recorded a modest 0.60% gain in October, aided by $1.011 billion in forex injections from the Ghana Gold Board .

Inflation stood at 5.5% in October, the third consecutive monthly rise, driven largely by services and transport costs . Gross international reserves declined from $13.83 billion in December 2025 to $11.07 billion in August 2026, reducing import cover from 5.7 months to 4.2 months .

Political Pushback

The programme has drawn scrutiny from the Minority in Parliament. Ranking Member on the Finance Committee Dr Mohammed Amin Adam has questioned the government's ability to mobilise the proposed investment, pointing to what he described as a 39.3% shortfall in capital expenditure against target in the first half of 2026 and a GH¢5 billion reduction in capital spending. "Until these questions are answered with a costed, published financing plan, the New Economy is a slogan, not a policy," he said .

The Institute of Public Policy and Accountability has also questioned how the New Economy differs from the earlier 24-Hour Economy initiative, and whether existing flagship programmes have delivered measurable results before new ones are launched .

A Legacy Bet

For President Mahama, the New Economy represents a bet that Ghana can move beyond the stabilisation achieved under the just-completed $3 billion IMF programme and into an era of production-led growth. The 2027 Budget, presented by Dr Forson on Thursday evening, is expected to provide the full details—sector-by-sector allocations, financing arrangements and implementation timelines—that critics say are needed to judge whether the programme is more than a slogan .

The President's appearance at the currency launch, where he linked the cedi's fate to the programme's success, was a deliberate framing: the Heritage Series may celebrate Ghana's past, but its value, he suggested, will depend on what the country produces in the years ahead.