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Starting January 1, 2026, the Ghana Revenue Authority (GRA) will implement a new VAT structure, reducing the effective rate from 21.9% to 20%. This reform aims to simplify compliance as Ghana nears the conclusion of its current IMF program. Simultaneously, the Minority in Parliament, led by Ranking Member Kojo Oppong Nkrumah, has raised alarms over the Gold Board's decision to license Bawa Rock Company Limited as the sole aggregator for artisanal gold, calling it a dangerous monopoly. Conversely, Bolgatanga Central MP Isaac Adongo defended the 'GoldBod' initiative, claiming it has successfully generated $11 billion USD in reserves to stabilize the economy.
These fiscal changes directly impact the cost of doing business and consumer prices. The gold aggregation dispute highlights a shift in resource management strategy under the Mahama administration that could either centralize wealth or, as proponents argue, protect the cedi through higher reserves.
Ghana entered an IMF-led debt restructuring program in 2023. These VAT reforms and gold-for-reserves policies are critical components of the government's strategy to exit the program by late 2026.
In a display of political maturity, President John Dramani Mahama visited former President John Agyekum Kufuor on December 30, 2025. The festive visit was described as warm and lighthearted, aimed at fostering national unity. However, the administration faces internal PR challenges following a viral video showing Interior Minister Mohammed-Mubarak Muntaka spraying large sums of cash at a wedding, which critics have labeled as insensitive given the country's recent economic recovery efforts.
Maintaining a relationship between the NDC and NPP leadership is vital for social stability, but the Muntaka incident risks alienating voters sensitive to displays of opulence by public officials.
MP Samuel Okudzeto Ablakwa confirmed that the Juapong Textile Industry, dormant for over a decade, is being reactivated through a public-private partnership. The factory will focus on producing security and school uniforms, with the potential to employ up to 100,000 people.
Look for the specific announcement of the private sector partner in Q1 2026, which will determine the speed of the rollout.
As of December 30, 2025, the Ghana cedi has appreciated to GHc10.65 (~$0.93 USD) per dollar, a significant improvement from GHc11.10 (~$0.97 USD) just 24 hours prior. This surge in value is attributed to increased year-end liquidity and improved confidence in the country's fiscal trajectory heading into 2026.
A stronger cedi lowers the landing cost of fuel and imported goods, which should lead to a reduction in transport fares and food inflation in early January.
Your USD remittances will convert to fewer Cedis today than yesterday, but the increased purchasing power of those Cedis within Ghana means your family's cost of living is effectively stabilizing.
This 4% single-day gain suggests a 'Santa Claus rally' for the Cedi. Watch for whether the Bank of Ghana can maintain this level once the holiday demand for imports resumes in January.
The IMF reports that while the Electricity Company of Ghana (ECG) has improved its bill coverage from 11% to 48%, the company remains burdened by US$1.2 billion in total debt. The 2026 Budget has allocated GHc15 billion (~$1.31 billion USD) to cover anticipated shortfalls and debt repayments to Independent Power Producers (IPPs).
The energy sector remains Ghana's largest fiscal risk. The agreement for 'haircuts' with nine IPPs is a positive signal for debt sustainability, but the US$500 million projected shortfall for 2025 indicates that tariff adjustments or further efficiency gains are likely in 2026.
A new wave of Ghanaian women, including Nana Afua Nhyira (Afua Nhyira Luxe) and Hazel Dela (Dela Organics), are successfully scaling traditional Ghanaian products into North American and European markets. These leaders are merging ethical fashion and sustainable agro-processing with modern fintech, as seen with Farida Bedwei's Logiciel Ltd.
This sector offers significant opportunities for 'angel' investing and distribution partnerships for those looking to bring authentic Ghanaian brands to global markets.
Police intercepted a vehicle on December 30 carrying over 2,600 rounds of AK-47 ammunition and bulletproof vests. Three suspects were arrested. The cargo was reportedly bound for Walewale in the North East Region, an area currently sensitive to regional tensions.
The North East Region is adjacent to areas impacted by the ongoing Bawku conflict. Increased arms trafficking in this corridor is a major concern for national security, often linked to chieftaincy disputes or spillover from regional instability.
Increased security checkpoints along the Accra-Kumasi-Tamale highway during the New Year period.
As per tradition, 31st Night church services were filled with prophetic declarations. Rev. Owusu-Bempah warned of the potential passing of a prominent chief and former U.S. president in 2026, while Nigel Gaisie predicted the Black Stars would qualify for the 2026 FIFA World Cup.
Prophetic culture holds significant sway over public sentiment and social behavior in Ghana, often influencing market moods and political discourse.
Bournemouth is preparing a move for Leicester City's Ghanaian winger Fatawu Issahaku in the January window, with a reported £30 million (~$38 million USD) release fee. This move comes as Manchester City nears a £65 million (~$82 million USD) deal for another Ghanaian star, Antoine Semenyo, expected to be finalized by New Year's Day.
Black Stars context: Both players are vital to Ghana's 2026 World Cup qualifying campaign. Semenyo's move to a top-tier club like Manchester City would significantly elevate the national team's profile.
Under Ghanaian coach Kwesi Appiah, Sudan has qualified for the Round of 16. Nigeria also dominated Group C with a 3-1 win over Uganda. Tanzania faces a must-win clash against Tunisia to secure their spot.
British-Ghanaian boxing icon Anthony Joshua was involved in a serious car accident in Ogun State, Nigeria, on December 29. While Joshua sustained only minor injuries, two of his associates were tragically killed when their vehicle struck a stationary truck. Joshua had recently returned to West Africa after his fight with Jake Paul in Miami.
The year 2025 saw the loss of several pillars of Ghanaian culture, most notably Highlife legend Daddy Lumba (July 26) and innovative entrepreneur Apostle Kwadwo Safo Kantanka (September 11). Other losses include Dada KD, William Addo, and Aseibu Amanfi.
These individuals were the architects of modern Highlife and local industrial pride; their passing marks the end of an era for the Ghanaian creative arts.
Mamady Doumbouya has been elected President of Guinea with 86% of the vote, signaling a transition from his 2021 coup to civilian rule, though opposition figures question the turnout. In Ivory Coast, President Ouattara's ruling RHDP has significantly expanded its parliamentary majority to 197 seats.
Ghana relevance: Stability in these neighboring ECOWAS states is crucial for Ghana's regional trade and security, especially as the sub-region faces challenges from military regimes in the Sahel.
Today we covered the Cedi's impressive year-end surge to GHc10.65, a major security operation intercepting ammunition bound for Walewale, and the upcoming VAT reforms that will shape 2026. Thank you for reading the Ghana News AI Daily Brief!
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