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Ghana's Inflation Hits 4-Year Low at 5.4% -- The twelfth consecutive monthly decline signals a major win for macroeconomic stability and provides significant relief to household food budgets.
VAT Reform Returns GHc6.5 Billion (~$606 million USD) to Consumers -- A lower 20% rate and the abolition of the COVID-19 levy have triggered price drops in major retail hubs, boosting consumer purchasing power.
Police Crack Adabraka Jewellery Heist as Tensions Resurface in Bawku -- While significant arrests were made in a GHc7.5 million (~$699,000 USD) robbery case, the tragic killing of two teenagers in Bawku highlights ongoing security challenges in the North.
The Ghana Police Service has announced the arrest of Hamza Agerego and Alhassan Elliasu in Ashaiman, linked to the high-profile GHc7.5 million (~$699,000 USD) Adabraka jewellery shop robbery. During the operation on January 7, 2026, authorities recovered two pump-action guns and ammunition. This follows the previous arrest of Ali Mohammed in 2025. Simultaneously, security concerns have spiked in Bawku following the fatal shooting of two teenagers, Talfu Saibu (17) and Asana Mbawini (16), while they were on an errand. Assemblymember Emmanuel Azumah has issued an urgent call for reinforced security as the incident threatens a period of relative calm in the area.
The resolution of the Adabraka case restores some confidence in urban policing, but the Bawku shootings serve as a stark reminder that the northern security situation remains volatile, requiring constant state intervention.
The Bawku conflict is a long-standing ethnic and chieftaincy dispute between the Kusasi and Mamprusi groups in the Upper East Region. It periodically disrupts trade routes to Burkina Faso and requires heavy military and police presence to maintain order.
The Ghana Education Service (GES) has officially integrated mandatory online and off-campus periods into the 2025/2026 academic calendar for double-track schools. Students will access free digital textbooks via curriculumresources.edu.gh and watch televised lessons on Ministry of Education TV. This shift aims to standardize learning outcomes during the periods when students are away from physical classrooms.
This represents a permanent shift toward hybrid education in Ghana, attempting to bridge the gap in the double-track system which has faced criticism for 'lost' instructional time.
The double-track system was introduced under the previous Akufo-Addo administration to handle the massive influx of students following the Free SHS policy. The new Mahama administration is continuing this digital integration to optimize the current infrastructure.
Ghana's inflation rate dropped to 5.4% in December 2025, down from 6.3% in November and a massive 23.8% a year earlier. This marks the lowest level in four years. Food inflation, a primary driver of the cost of living, fell significantly to 4.9%. This broad-based disinflation is attributed to fiscal consolidation, a stable Cedi, and improved monetary policy, providing a much-needed reprieve for both businesses and consumers.
Single-digit inflation increases the likelihood of the Bank of Ghana lowering the prime rate, which would reduce the cost of borrowing for businesses.
With inflation cooling and the Cedi stabilizing, the purchasing power of your USD remittances is becoming more predictable, making it a favorable time to fund long-term projects or property developments back home.
This 12-month trend of declining inflation signals that Ghana's macroeconomic stabilization plan under the IMF framework is working, potentially improving the country's credit outlook for 2026.
The Ghana Revenue Authority (GRA) reports that the new VAT structure, effective January 1, 2026, has already led to a 1.9% average drop in consumer prices. By lowering the VAT rate to 20% and abolishing the COVID-19 Health Recovery Levy, the government has effectively returned GHc6.5 billion (~$606 million USD) to the pockets of shoppers. Major retailers like Melcom and Palace Mall have confirmed they have already adjusted prices downward to comply with the new regulations.
This is one of the most significant tax reliefs in recent years, aimed at stimulating domestic demand and simplifying the tax code for the private sector.
The scrapping of the flat rate scheme in favor of a unified VAT system reduces administrative complexity for large-scale retail and manufacturing investments.
While global gold prices have surged to approximately $4,408 per ounce following international geopolitical shifts, economist Senyo Hosi warns that Ghana may not fully capitalize on this boom. Domestic production fell from 104 metric tonnes in 2024 to 101 metric tonnes in 2025. Structural constraints, operational bottlenecks, and the continued threat of smuggling are cited as primary reasons why output remains inelastic despite favorable pricing.
Ghana is currently the leading gold producer in Africa, but the sector faces intense scrutiny over 'galamsey' (illegal mining) and the ecological impact on water bodies, leading to tighter, yet sometimes restrictive, regulations.
Look for new government incentives or mining license reviews in Q1 2026 aimed at unlocking the 'trapped' output Hosi describes.
A devastating accident in Asikuma, Western North Region, claimed seven lives on January 7. A timber truck collided with a tricycle, killing five people instantly, while two others died shortly after reaching the hospital. The Ghana National Fire Service and Police are investigating the cause, though early reports suggest a failure in vehicle control in the early morning hours.
This tragedy may reignite calls for stricter regulation of tricycles (Pragyia) on major highways, where they are frequently involved in high-speed collisions.
Health officials in the Ashanti Region are on high alert after recording 2,997 new HIV cases in 2024, an average of nine new infections per day. Dr. Fred Adomako Boateng noted that a significant number of those infected are not on life-saving antiretroviral therapy (ART). Stigma remains a massive barrier, particularly for men and the youth, who often avoid testing and treatment.
The high infection rate among the youth poses a long-term threat to Ghana's human capital and places an increasing burden on the national health insurance scheme.
Ghana has historically struggled with high HIV stigma, which the Ghana AIDS Commission has been fighting through 'Know Your Status' campaigns for over two decades.
USA-based Ghanaian mogul CEO Pryme has announced a $10 million (~GHc107.3 million) investment fund through EZ Streets Records. The capital is earmarked for local talent discovery, state-of-the-art production facilities, and global marketing for Ghanaian artists. Pryme believes the local scene is undervalued and lacks only the structured management found in the West to dominate global charts.
This is one of the largest private individual investments in the Ghanaian creative arts sector, signaling a shift from 'entertainment' to 'big business.'
This move highlights the growing trend of successful Ghanaians abroad returning to invest in the 'soft power' sectors of the economy—music, film, and fashion.
Nigerian superstar Burna Boy has become the first African artist to reach nearly 2 billion streams on Spotify in a single year (2025). His 1.986 billion streams outpaced Wizkid (1.81 billion) and Tyla (1.67 billion). The list also featured Ghanaian-linked Mr Eazi, reflecting the continued global dominance of the Afrobeats and Highlife-fusion genres.
Burna Boy's success acts as a tide that lifts all boats in the West African music ecosystem, increasing the 'African premium' for festival bookings and brand deals.
Today we covered the historic drop in inflation to 5.4%, the massive GHc6.5 billion tax relief for consumers, and the critical security updates from Bawku and Adabraka. Thank you for reading the Ghana News AI Daily Brief!
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