Investors support economic reset as reforms lift credibility

By Joshua Worlasi AMLANU, Washington D.C

International investors are increasingly endorsing Ghana’s economic reset strategy, citing tangible reform progress and improving macroeconomic indicators as evidence of a credible turnaround, Finance Minister Cassiel Ato Forson said during engagements on the side-lines of the IMF/World Bank Spring Meetings 2026.

Investor sentiment, according to the minister, has shifted in response to what he described as a disciplined and legally anchored reform programme, with participants expressing strong confidence in the depth and sustainability of policy adjustments aimed at stabilising the economy.

“These are not cosmetic gains,” Dr. Forson said, pushing back against perceptions of a short-lived recovery. “They are outcomes of well-thought-through reforms, backed by laws and disciplined implementation.”

Ghana’s reset strategy has centred on aggressive fiscal consolidation and structural reforms designed to restore credibility after years of macroeconomic strain. A key pillar has been expenditure rationalisation, including a sharp reduction in the size of government with the number of ministers cut from 123 to 60.

Government has also tightened public financial management through the enforcement of a commitment authorisation regime across Ministries, Departments and Agencies, aimed at curbing arrears accumulation and strengthening spending controls. Amendments to the Public Financial Management Act have introduced binding fiscal rules, including a primary surplus target of 1.5 percent of GDP and a debt ceiling of 45 percent – reinforcing medium-term fiscal discipline.

To institutionalise oversight, government has established an independent Fiscal Council and an Office of Value for Money to improve expenditure efficiency and accountability. Additional reforms include the uncapping of statutory funds to better align spending with national priorities, alongside changes in petroleum revenue management to channel more resources into infrastructure investment.

On the revenue side, authorities have implemented tax administration reforms targetting leakages, including adjustments to the refund system and broader VAT and Customs measures to boost domestic revenue mobilisation.

Sector-specific interventions have also featured prominently. In the extractive industries, royalty regimes have been restructured to support infrastructure financing while the energy sector has introduced a cash waterfall mechanism to improve financial sustainability. Payroll audits and programme rationalisation efforts are ongoing to eliminate inefficiencies, while the cocoa regulator, COCOBOD, has undergone restructuring to enhance operational performance. Social protection programmes have been expanded to mitigate the impact of fiscal tightening on vulnerable groups.

The minister said these measures are beginning to translate into improved macroeconomic outcomes. Economic growth has outperformed expectations, supported by strong activity in services and agriculture, while inflation has continued on a downward trajectory aided by tight monetary policy, fiscal consolidation and a firmer currency.

External buffers have also strengthened, with higher gold and cocoa export receipts contributing to reserve accumulation that has surpassed targets under Ghana’s IMF-supported programme. The improved outlook has been reflected in financial markets, with domestic and Eurobond yields declining and sovereign credit ratings seeing recent upgrades.

“These reforms have translated into tangible market outcomes,” Dr. Forson said, pointing to lower borrowing costs and renewed investor appetite for Ghanaian assets.

He added that Ghana’s public debt trajectory has improved significantly following restructuring efforts, with the country remaining current on its debt service obligations – another factor underpinning investor confidence.

Feedback from investors at the meetings reinforced government’s narrative, with many highlighting coherence of the reform agenda and visible progress in restoring macroeconomic stability and policy credibility.

The minister said government’s priority is to consolidate these gains through sustained fiscal discipline and continued structural reforms while scaling up productive investments to support inclusive growth.

“The gains we achieved in 2025 provide a solid platform for continued recovery and policy predictability. Our focus now is to consolidate these gains, strengthen confidence and build a more resilient and inclusive economy,” Dr. Forson said.

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