By Joseph Kwesi Appiah
Economist & Policy Strategist
Executive Director, CDI-Africa (Centre for Development Integrity Africa)
Tel: 0246361522
Ghanaโs 2026 budget arrives at a pivotal juncture. After years of economic turbulence, the nation now shows tentative signs of stability. Inflation has dropped to 8%, GDP growth stands at 6.3%, non-oil GDP has improved to 7.8%, and public debt has significantly fallen from 68.9% to 45% of GDP. Treasury bill rates have eased from 29% to 10.6%, reducing pressure on both government and private sector borrowing.
These figures are more than just numbers; they reflect a renewed confidence in Ghanaโs economy, driven by better coordination of fiscal and monetary policies and a disciplined approach to public finance. But the critical question remains: Can Ghana leverage this stability into meaningful, sustainable economic transformation?
At CDI-Africa, our focus is on governance integrity and development efficiency. In our view, the 2026 Budget presents one of the clearest opportunities in a decade for structural progress if and only if implementation is guided by discipline, transparency, and measurable results.
1. Energy: Powering Growth with Accountabilityย
The energy sectorโs bold agenda is the most promising element of this budget. Key initiatives include transitioning from light crude oil to natural gas, potentially reducing generation costs by up to 75%, and increasing gas supply from Jubilee, TEN, and OCTP fields. The plan also includes constructing a 1,200MW thermal plant starting in 2026, with GHยข15.2 billion allocated for sector shortfalls and tariff stabilization, and GHยข4.8 billion earmarked to settle longstanding Independent Power Producer (IPP) debts.
If effectively executed, these measures could lead to lower energy prices, increased industrial productivity, and a more competitive manufacturing sector. A reliable and affordable power supply is vital for a 24-hour economy, digital services, cold-chain logistics, agro-processing, and SME growth.
However, energy governance remains the greatest risk. Past issues of political interference, opaque Power Purchase Agreements, arrears, weak regulation, and procurement distortions must be addressed if this sectorโs potential is to be realized. Without transparency in all IPP payments, regular publication of arrears and independent monitoring, and efficiency in ECG operations, the sectorโs reforms risk failure.
2. Agriculture: The Driver of Inclusive Growth
Agriculture receives notable allocations: GHยข245 million for food security and value chains, GHยข690 million for Farmer Service Centers, GHยข828 million for 1,000 km of agricultural enclave roads, and GHยข6.9 billion for oil palm industrialization. These investments could help reduce food inflation, boost exports, stabilize the cedi, and generate regional jobs, especially in high-poverty areas.
Yet, past agricultural programs have struggled with delayed inputs, political interference, weak monitoring, and leakages. To succeed, Ghana must strengthen accountability mechanismsโsuch as a digital Farmer Verification System, district-level monitoring dashboards, and transparent beneficiary lists. Effective execution will determine whether agriculture becomes Ghanaโs fastest route to inclusive growth.
3. Infrastructure: Building with Transparency
With GHยข30 billion allocated to infrastructure, particularly GHยข13.8 billion for roads, the budget signals an unprecedented capital investment. Priority projects like the AccraโKumasi Expressway, rural roads, bridges, and logistics hubs promise to reduce transport costs and open new economic corridors.
However, infrastructure projects are often plagued by inflated costs, poor supervision, and incomplete or abandoned works. To ensure value for money, Ghana must publish procurement details, enforce performance-based contracts, and impose penalties for delays or substandard work.
4. Human Development: Investing in People
The budgetโs allocations for education (GHยข33.3 billion), healthcare (GHยข9 billion), and social protection are significant. Investments in health and education are critical for developing a competitive, innovative workforce capable of driving long-term growth.
Nevertheless, high spending without accountability risks inefficiency. Procurement leakages, inflated claims, and weak monitoring could undermine outcomes. CDI-Africa recommends results-based funding, digital tracking of procurement processes, and rigorous audits to ensure these investments translate into real improvements in health and education.
Strengths and Challenges of the Budget
Ghanaโs 2026 Budget demonstrates macroeconomic stability, energy sector reforms, rural development focus, and investments in health and education potential catalysts for transformation. But weak implementation culture, governance vulnerabilities, procurement risks, and slow rollout of enablers like the 24-hour economy threaten to undermine these gains.
The road ahead
If the government prioritizes transparency, discipline, and accountability in implementing the 2026 Budget, the country stands to make significant strides toward sustainable development and economic transformation. Focused efforts to strengthen governance, reduce corruption, and ensure value for money across all sectors are essential.
The government must foster a culture of results-driven execution, where measurable outcomes are tracked, and responsible agencies are held accountable. Public participation and independent oversight can play critical roles in safeguarding integrity and ensuring that investments translate into tangible benefits for all Ghanaians.
The success of this budget depends on commitment to good governance and institutional integrity. With these in place, Ghana can move beyond stabilization to realize its full economic potential to create jobs, improve living standards, and build a resilient, inclusive economy for future generations.
