CEO Summit: Mahama positions private sector at centre of post-IMF growth strategy

President John Dramani Mahama, during remarks at the 10th Ghana CEO Summit, has described the private sector as the principal driver of Ghana’s next phase of economic expansion.

He said the role of private enterprise had become even more critical as the country transitions from a period of crisis stabilisation under its IMF-supported programme towards a new phase focused on investment-led growth, economic diversification and long-term expansion.

Addressing a host of business leaders, investors and policymakers in Accra, Mr. Mahama said the government remains committed to creating a business environment capable of supporting growth across key sectors of the economy, stressing that sustainable expansion would require stronger collaboration between the state and private enterprise.

“We need the private sector to complement government’s efforts,” he said, urging businesses to take advantage of regional trade opportunities and emerging investment platforms.

“We have spent considerable time discussing economic recovery, stability and national reset. These are necessary foundations, but are not enough on their own. Stability must underpin production; production must create jobs; jobs must raise incomes, and higher incomes must restore confidence and dignity among our people,” he stated.

The address comes at a time when Ghana’s macroeconomic indicators have improved sharply following the instability that characterised the economy between 2022 and 2024.

The economy expanded by six percent in 2025, its fastest pace since 2019, following revised growth of 5.8 percent in 2024. Inflation, which peaked at 54.1 percent in December 2022, fell sharply to 3.2 percent in March 2026 — the 15th consecutive monthly decline and the lowest level since the rebasing of the Consumer Price Index in 2021, before edging up slightly to 3.4 percent in April amid rising external pressures.

The cedi appreciated by more than 40 percent against the US dollar in 2025, emerging as Africa’s strongest-performing currency for the year according to IMF data across major African economies, while gross international reserves rose to US$14.4 billion as of May 18, 2026 from US$13.8 billion at end-December 2025, equivalent to 5.7 months of import cover.

The currency has, however, softened moderately in 2026 as the Bank of Ghana gradually reduces its intermediation in the foreign exchange market.

The improvement in macroeconomic conditions has been reinforced by fiscal consolidation under the IMF-supported programme. Public debt declined to 45.3 percent of GDP at end-December 2025 from 61.8 percent a year earlier, while the primary fiscal balance recorded a surplus of 2.6 percent of GDP, exceeding programme targets.

The easing inflation environment has also allowed the Bank of Ghana to cut its benchmark policy rate from 28 percent in mid-2025 to 14 percent by March 2026, contributing to a sharp rebound in credit growth.

Real private sector credit expanded by 24.5 percent year-on-year in April 2026, reversing a contraction recorded a year earlier, while total industry advances reached GH¢115.2 billion.

The recovery in financial conditions has coincided with a rebound in investor confidence. Foreign direct investment inflows rose to an estimated US$2.61 billion in 2025 across 253 projects, up from US$652 million in 2024, with the increase linked to easing inflation, currency stability and improving market sentiment.

The International Finance Corporation has also financed or mobilised approximately US$505 million in private investment in Ghana during fiscal year 2026 to date, following US$410 million mobilised in fiscal year 2025.

Mr. Mahama’s remarks come as the government and the IMF recently reached staff-level agreement on the sixth and final review of the US$3 billion Extended Credit Facility programme alongside a new three-year Policy Coordination Instrument.

Unlike the ECF, the PCI carries no financing component and is designed to support reform consolidation and policy credibility rather than crisis funding.

The transition effectively shifts emphasis from externally financed stabilisation toward domestically driven growth, increasing the importance of private investment, export expansion and business activity in sustaining the recovery.

Analysts say the government’s stronger emphasis on the private sector also reflects limited fiscal space following years of debt restructuring and austerity measures, leaving private capital as the main source of expansionary momentum.

However, risks to the outlook remain visible. Global geopolitical tensions linked to the Iran war have raised concerns over renewed imported inflation pressures and weaker business activity, while Ghana’s state cocoa buyer continues to face operational constraints following legal disputes tied to debt obligations.

The World Bank has projected growth moderating to 4.8 percent in 2026 from six percent in 2025, suggesting the economy may be moving from an initial post-crisis rebound toward a slower but more sustainable expansion phase.

President John Dramani Mahama also launched the Government-CEO Compact 2026, positioning the agreement as the central framework through which his administration intends to translate three years of macroeconomic stabilisation into sustained private sector-led growth.

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