President Mahama Announces $10bn New Economy Investment Programme

President John Dramani Mahama has announced a US$10 billion investment programme to drive economic growth and create jobs as government shifts its focus from economic stabilisation to expanding opportunities for Ghanaians.

The programme, to be implemented over four years under what government describes as the New Economy, will target seven priority sectors of the Ghanaian economy.

President Mahama announced the initiative during a Resetting Ghana Community Engagement in the Upper East Region, where he said the government had moved beyond the immediate task of stabilising the economy and was now focusing on growth and job creation.

He said the government would invest US$2.5 billion annually in the seven priority sectors over the next four years, resulting in a total investment of US$10 billion.

“Now that we have completed the stabilisation of the economy, our next focus is on creating jobs and opportunities for our young people,” President Mahama said.

He explained that the New Economy policy would be presented by the Minister for Finance to Cabinet and Parliament as part of government’s strategy to sustain economic recovery and create productive opportunities for citizens.

The President said agriculture and agro-processing would constitute the largest component of the investment, receiving 50 per cent of the total allocation, equivalent to US$5 billion over the four-year period.

He said the investment would support irrigation development, agricultural production and agro-processing, particularly to enable young people to engage in productive activities throughout the year.

President Mahama said the Upper East Region, with its potential in agriculture, would benefit significantly from the programme.

He cited ongoing initiatives such as the Tomato Revitalisation Project, which is bringing 2,500 acres under tomato production, as well as efforts to rehabilitate the Pwalugu Tomato Factory to process locally produced tomatoes.

Government is also rehabilitating the Tono irrigation facility, with about 850 acres expected to be brought under cultivation by next year to support dry-season farming, particularly onion production.

The President said the investments would help strengthen domestic production, create employment and reduce Ghana’s dependence on imports.

He said the New Economy programme would build on the fiscal discipline that government had applied during the economic stabilisation phase.

President Mahama noted that for about one and a half years, government had not submitted any loan agreement to Parliament, describing the development as evidence of the administration’s efforts to manage the country’s finances prudently.

He said the first loan agreements submitted to Parliament under his administration were the US$300 million World Bank STAR-J Project, aimed at supporting the elimination of the double-track system in secondary schools, and a US$500 million feeder roads project.

The President said government would continue to exercise prudence in managing the economy while directing resources towards sectors capable of generating sustainable growth and employment.

He said the transition from stabilisation to growth and job creation represented the government’s next major economic priority under the Resetting Ghana Agenda.

Richard Aniagyei, ISD