Here’s what to expect from the ‘New Economy’ in the 2027 Budget

Government plans to invest approximately $10 billion over four years in what it calls a “New Economy”, with agriculture, manufacturing and job creation at the centre of the programme.

A Finance Ministry document has provided an early indication of what to expect when Finance Minister Dr. Cassiel Ato Forson presents the budget on November 12.

Finance Minister Dr Cassiel Ato Forson

It outlines seven pillars and proposes changes to government’s fiscal targets to create room for the investment. But much of what the programme seeks to achieve sounds familiar, particularly when viewed alongside the NDC’s flagship 24-Hour Economy policy.

The first pillar is macroeconomic stability. Government’s position is that the gains made in stabilising the economy should now provide a foundation for investment, production and employment.

The second focuses on commercial agriculture, agri-industry and agribusiness. The intention is to reduce dependence on imported food while creating jobs across farming, processing and related businesses.

Energy sector reforms and investment form the third pillar, while critical minerals and value addition constitute the fourth, reflecting government’s ambition to retain more of the benefits from Ghana’s natural resources through domestic processing.

The remaining three pillars cover cotton, textiles and garments; tourism, culture and creative arts; and the development of a pharmaceutical manufacturing hub.

These are sectors with considerable potential to expand production and employment. However, the document does not yet identify the specific projects government intends to finance or how the proposed investment will be distributed among them.

For instance, the pharmaceutical manufacturing pillar does not explain whether government intends to support existing manufacturers to expand, attract new producers or finance shared infrastructure. Similar questions arise around the proposed support for textiles and mineral processing.

The 2027 Budget will need to provide greater clarity on these priorities.

There is, however, a financing proposal.

Government intends to commit 1.5% of GDP annually between 2027 and 2030, amounting to approximately $10 billion over the period.

An additional 0.5% of GDP is expected to come from revenue measures, while the remaining fiscal space would be created by reducing the primary surplus target from 1.5% to 0.5% of GDP.

In effect, government plans to mobilise additional revenue and create more room for productive investment while maintaining a primary surplus before interest payments.

That could provide the resources needed to support the identified sectors. Whether it translates into the expected jobs and increased production, however, will depend on what the money finances and how the projects are implemented.

It also raises a question about the place of the 24-Hour Economy in this new arrangement.

The NDC’s manifesto described the policy as an intervention to encourage businesses and public institutions to operate in three shifts of eight hours each, boosting production and generating well-paying jobs.

“The 24-Hour Economy policy aims to transform Ghana into an import-substitution and export-led economy,” it stated.

Source: NDC 2024 Manifesto

The manifesto promised cheaper electricity, tax incentives, financing support and improved security for participating businesses. Government would also use its purchasing power to support locally produced goods.

Agro-processing, manufacturing, pharmaceuticals, extractive industries and hospitality were among the sectors identified.

Several of these priorities now feature prominently in the New Economy framework.

The overlap is not particularly surprising. They are sectors Ghana needs to develop. But it raises an important question: what does the New Economy add to a programme government has already spent considerable time promoting?

When the 24-Hour Economy blueprint was launched in July 2025, it had already expanded beyond the campaign emphasis on keeping businesses open for longer.

As JoyNews Research explained at the time, the blueprint combined incentives for additional shifts with broader proposals for industrial parks, irrigation, energy and logistics. Its broader objective was to address the structural constraints preventing businesses from increasing production.

So, is the New Economy now the framework through which government intends to finance and implement those proposals, or has it changed its approach?

The fiscal strategy continues to mention the 24-Hour Economy alongside the New Economy and the Big Push infrastructure programme. It does not suggest that the earlier policy has formally been abandoned.

There have also been some steps towards implementation. The 24-Hour Economy Authority Bill was signed into law in February 2026, while a downstream petroleum pilot was announced in May.

What remains necessary and lacking, however, is a clear account of the results so far.

President John Dramani Mahama

After the extensive promotion of the 1-3-3 formula, government should explain how many businesses have introduced additional shifts, which incentives they have received and how many additional workers have been employed.

Without that information, it is difficult to assess whether the New Economy builds on progress under the existing policy or reflects challenges in implementing it.

There is also a broader question of policy continuity.

The previous administration’s One District One Factory programme similarly sought to support private businesses, add value to local resources, replace imports and expand exports. Planting for Food and Jobs also aimed to increase agricultural production and employment while reducing dependence on food imports.

The programmes differ in name and design, but many of the underlying challenges they seek to address remain the same.

Factories still need affordable finance, reliable electricity, raw materials and customers. Farmers need access to inputs, storage, transport and reliable markets. These requirements do not change with a new policy name.

Government will therefore need to demonstrate how its proposed investment addresses these constraints and what lessons it has drawn from previous programmes. It should also clarify whether existing projects will be incorporated into the New Economy and how their performance will be measured.

The 2027 Budget presentation on November 12 should provide a clearer basis for that assessment.

For now, the fiscal strategy sets out the sectors government wants to support and how it intends to create the fiscal space to finance them. The specific projects, delivery timelines and employment targets remain to be explained.

Ultimately, those details will determine what is genuinely new about the New Economy and whether Ghanaians should expect a different outcome from another familiar promise of increased production and job creation.