President John Dramani Mahama has declared Ghana’s economic recovery phenomenal, attributing this progress to strict fiscal discipline and deliberate efforts to reduce government waste. This assessment comes one-and-a-half years after the National Democratic Congress (NDC) assumed power. The President made these remarks during his ‘Accounting to the People’ tour in Bolgatanga last Friday, engaging various community leaders.
The government’s commitment to prudent economic management and effective use of Internally Generated Funds (IGF) significantly contributed to this recovery. President Mahama highlighted that the government did not send any loan agreements to Parliament for the entire year 2025. This indicates a strong reliance on domestic resources for implementing national programmes. The first loan agreements presented to Parliament this year include a $300 million World Bank STARR-J project and a $500 million Feeder Roads project.
This focus on self-reliance and fiscal prudence fits into Ghana’s broader economic narrative of reducing debt and strengthening domestic capacity. The government aims to stabilize the economy fully, creating jobs and expanding opportunities for young people. This strategy seeks to insulate Ghana from external economic shocks and foster sustainable growth. Previous administrations have often relied heavily on external borrowing, making this shift a notable policy direction.
President Mahama stated, “Cutting down waste and related unnecessary expenditure has helped in this recovery. The whole of last year (2025), we did not send any loan agreement to Parliament. Not even one loan agreement.” This statement underscores the administration’s dedication to fiscal responsibility. The Minister of Finance, Dr. Cassiel Ato Forson, will present a new policy called “The New Economy” to Parliament, focusing investment on seven selected sectors.
The new policy outlines a substantial investment of $2.5 billion annually for the next four years, totaling GHS 10 billion. Agriculture and agro-processing will receive the largest share, accounting for 50 percent of this total investment. This GHS 5 billion allocation aims to boost food production and create employment, particularly in regions like the Upper East. This significant capital injection is expected to stimulate economic activity and reduce import dependency.
The Upper East Region is poised to become Ghana’s agricultural hub under this plan. President Mahama pledged to accelerate the Tomato Revitalisation Project, ensuring farmers produce quality tomatoes for the domestic market. Work on the Tamne Irrigation Dam project in Tempane will also see significant progress. This dam will enable five districts and a municipality to intensify dry-season farming, reducing reliance on onion imports from Niger.
Beyond agriculture, other infrastructure projects in roads, health, and education are also receiving attention. The Upper East Region will benefit from these broader national development investments. The Minister of Roads and Highways, Mr. Kwame Governs Agbodza, recently cut the sod for the Tongo-Sheaga-Pelungu road construction. This project falls under the ‘Big Push’ initiative, promising improved connectivity and economic access for residents.
The Upper East Regional Minister, Mr. Donatus Atanga Akamugri, reported that the region has implemented over 253 physical development projects during the review period. He credited the government’s strong economic management for this progress. These regional developments align with the national strategy to decentralize growth and ensure equitable distribution of economic benefits across Ghana. The emphasis on local production and infrastructure development signals a strategic shift towards long-term economic resilience.