Government Living Within Its Means to Create Space for Private Sector – President Mahama

Government is exercising fiscal discipline and living within its means in order to create space for the private sector to grow and expand.

President John Dramani who said this Speaking during an industrial tour of Kasapreko PLC in Tema on Thursday, noted that the government was deliberately reducing its footprint in the credit market so that businesses could access financing at reasonable rates.

“We are exercising fiscal discipline. We are making sure that government is living within its means, and we are creating space for the private sector to grow,” President Mahama emphasised.

He explained that in the past, government was crowding out the private sector by taking up all available credit, leaving businesses with little access to financing, and at excessively high interest rates.

“Before, government was crowding out the private sector because government was taking all the credits, and so the private sector, if you went there, there was no credit for you. Apart from that, the level, the interest they wanted to charge on it was excessive,” he said.

The President noted that the situation is changing. Interest rates have fallen from about 32 percent, with one business owner telling him he had borrowed at 9 percent.

“This is the time for businesses to invest. Foreigners are doing it already,” he said, citing foreign direct investment rising from 624 million dollars in 2024 to 2.62 billion dollars in 2025 in just one year.

“If foreigners have confidence in our economy and they are coming and investing, then it means that Ghanaians should also take the opportunity and invest,” he added.

President Mahama said the improved investment climate is already yielding results, with many new industries emerging under the 24-hour economy initiative and many existing industries expanding their production because of the good enabling environment created by the government’s economic policy.

He cited Kasapreko as a leading example of Ghanaian enterprise responding to the improved environment. The company has expanded from Production Line 3, which the President commissioned 11 years ago, to Production Line 8 today, producing for both the Ghanaian market and for export.

The President also commended Kasapreko on its successful listing on the Ghana Stock Exchange, which raised 700 million Ghana cedis for investment in its new factory at Adeiso.

The President reiterated that the government would continue to provide the enabling environment, financing, and infrastructure that Ghanaian businesses need to rise, and urged Ghanaian entrepreneurs to take advantage of the improved conditions to invest and expand.

Richard Aniagyei, ISD