Ghana Strengthens Economic Framework with New Fiscal Council, Tax Reforms, and Regional Industrial Drives

11th February•3 min read•7 sources

The Government of Ghana is moving to solidify its economic independence and fiscal discipline as it prepares for life after the International Monetary Fund (IMF) programme. Deputy Minister of Finance, Thomas Nyarko Ampem, has announced the upcoming establishment of an Independent Fiscal Council, a body designed to provide rigorous financial oversight and advisory support for local decision-making. This move comes as the government reports positive economic indicators, including a significant decrease in inflation to 3.8%. During meetings with French economic officials, the government emphasized that this council will be vital for maintaining long-term stability and fostering international partnerships, particularly with France, which has pledged continued support for Ghana's infrastructure and energy sectors.

Parallel to these institutional changes, the Ghana Revenue Authority (GRA) is addressing public concerns regarding the transition to a new Value Added Tax (VAT) regime under the VAT Act, 2025 (Act 1151). Responding to fears from the Abossey Okai Spare Parts Traders Association that the shift from a 4% flat rate to a 20% standard VAT would hike consumer prices, the GRA clarified that the new system allows for full deductibility of input VAT. According to the Authority, this change is designed to lower business costs and could even lead to price decreases when properly applied. To ensure a smooth transition, a joint technical team has been formed with the Ghana Union of Traders’ Associations (GUTA) to assist businesses with compliance and correct pricing adjustments.

Beyond fiscal and tax policy, the government is intensifying its focus on regional industrialization and agriculture to drive job creation. In the Upper East Region, initiatives have been announced to reactivate the Pwalugu Tomato Factory, which includes supplying farmers with high-yield seed varieties to boost production and reduce post-harvest losses. Similarly, in the Central Region, Odeefuo Amoakwa Boadu VIII, President of the Regional House of Chiefs, has voiced strong support for the government’s "Red Economy" agenda. This drive focuses on expanding palm nut cultivation as a strategic means to tackle youth unemployment and stimulate local economic growth through the agricultural value chain.

These multifaceted initiatives—ranging from high-level fiscal oversight and tax restructuring to local industrial projects—reflect a comprehensive strategy to ensure Ghana's economic self-reliance. By balancing macroeconomic stability with grassroots development, the government aims to create a more resilient economy capable of sustained growth. Moving forward, the success of these programs will depend on continued engagement with stakeholders, from trade associations to traditional leaders, and the effective implementation of the new Independent Fiscal Council's advisory recommendations.

More from politics

Continue exploring similar stories

politics|11th February

Ghanaian Political Landscape: President Mahama Proposes 'Accra Reset' Amid Rising Domestic Tensions and Global Legal Developments

President John Dramani Mahama has intensified his call for African economic sovereignty and transformation during a high-profile state visit to Zambia. Addressing the Zambian National Assembly, Mahama introduced his 'Accra Reset Initiative,' a policy framework designed to stabilize Ghana’s economy by reducing the size of government and curbing inflation. During his address, which touched on the deep historical ties between Ghana and Zambia, Mahama highlighted the urgent need for African nations to maintain control over their natural resources while tackling the persistent challenges of youth unemployment. The visit also served as a platform for diplomatic outreach, with the President introducing First Lady Lordina Mahama to the assembly as part of his mission to foster deeper bilateral cooperation. While the President projects a vision of stability abroad, Ghana faces significant domestic challenges in the security and labor sectors. In the Bawku enclave, a group of police officers has threatened to resign unless they are immediately transferred, citing escalating violence and a lack of adequate protection from the local population. Interior Minister Mohammed Mubarak Muntaka recently briefed Parliament on the crisis, advocating for the deployment of armored vehicles and more robust support for personnel on the front lines. Simultaneously, a coalition of university non-teaching unions has rejected a new retirement directive from the Ghana Tertiary Education Commission (GTEC). The unions have characterized the policy as 'arbitrary and discriminatory,' issuing a two-week ultimatum for its withdrawal to avoid a total shutdown of public universities. Infrastructure and national identity also remain at the forefront of the country's political discourse. Greater Accra Regional Minister Linda Ocloo has ordered an immediate halt to a private development beneath the Flowerpot Interchange on Spintex Road, citing right-of-way violations and potential obstructions to public infrastructure. This intervention led to an emotional appeal from the developer, Georgina Opoku, who claims she invested heavily after receiving permits that have now been revoked. Meanwhile, a proposal to rename Kotoka International Airport to Accra International Airport has sparked a debate over Ghana's history. While the government aims to align the facility with modern democratic values, retired Maj-Gen Edwin Sam has defended the legacy of General Kotoka, arguing that his role in the 1966 coup was viewed as heroic by many at the time. On the international front, legal accountability for high-profile figures continues to draw attention across the continent and beyond. In Zambia, the High Court has ordered Dalitso Lungu, son of former President Edgar Lungu, to surrender over $1.3 million in assets—including 79 vehicles and luxury properties—after he failed to prove their lawful acquisition. This drive for transparency mirrors ongoing scrutiny in the United States regarding former President Donald Trump. Recently surfaced FBI documents from 2006 suggest that Trump was aware of Jeffrey Epstein’s misconduct years before his arrest, allegedly telling a Florida police chief that 'everyone' knew of Epstein's behavior. These combined events underscore a global trend toward increased scrutiny of political figures and the legal implications of their past associations.

politics|11th February

NDC Retains Mohammed Baba Jamal for Ayawaso East By-Election Amid Vote-Buying Scandal

The National Democratic Congress (NDC) has officially confirmed that Mohammed Baba Jamal will remain its parliamentary candidate for the upcoming Ayawaso East by-election, despite an internal investigative committee recommending the annulment of his primary victory. The decision follows a high-stakes probe into allegations of widespread vote-buying during the February 7, 2026, primaries. While the party’s Functional Executive Committee (FEC) received a report confirming significant electoral irregularities, leadership has cited the Electoral Commission’s (EC) February 11 nomination deadline as the primary reason for upholding the results. The investigation, which involved questioning all candidates in the primary, highlighted major breaches of the party’s code of conduct. Findings presented by committee member Inusah Fuseini on February 10 indicated that Baba Jamal allegedly secured his victory through the distribution of cash and household items, including 32-inch television sets, to delegates. Despite these findings, the report was officially handed over to the FEC for a final verdict, where the practicalities of the upcoming by-election took precedence over the recommendation to void the results. NDC General Secretary Fifi Kwetey defended the decision by pointing to "insurmountable" time constraints and potential legal liabilities. Kwetey emphasized that the party risked being left without a candidate for the by-election if a rerun was attempted so close to the EC’s filing deadline. Furthermore, the General Secretary noted that the investigation revealed inappropriate conduct among all candidates, suggesting that the issues identified were not limited to the winner alone. In response to these failings, the NDC has announced plans to expand its investigative mechanisms and pursue internal reforms to curb the influence of money in future party elections. The decision has sparked significant debate within Ghana's political landscape. While some Members of Parliament called for a rerun to maintain the party's integrity, local constituency executives pushed for the results to stand. Civil society has also weighed in, with Peace Watch Ghana’s Executive Director, Nyonkopa Daniels, labeling the calls for annulment as "hypocritical." Daniels challenged lawmakers to pursue comprehensive, nationwide electoral reforms rather than targeting individual outcomes, arguing that the practice of vote-buying is a systemic issue that requires a broader solution.

politics|11th February

Legal Action and Farmer Unrest Intensify Pressure on COCOBOD Leadership Over Asset Declaration Failures

High-ranking public officials in Ghana are facing mounting legal and social pressure following revelations that several board chairpersons and chief executives have failed to comply with constitutional asset declaration requirements. President John Dramani Mahama has issued a stern directive mandating all appointees to declare their assets by a firm deadline of March 31, 2025, or face severe sanctions, including potential removal from office. This mandate aligns with Article 286 of the 1992 Constitution, which requires public officeholders to submit asset declaration forms to the Auditor-General upon assuming their roles. The urgency of this directive is underscored by a growing list of non-compliant officials whose names have surfaced through investigative efforts. At the center of this controversy is a legal application filed by journalist Wilberforce Asare against the Commission on Human Rights and Administrative Justice (CHRAJ). Asare has dragged the Commission to the High Court with a mandamus application, seeking to compel an investigation into twelve Board Chairpersons and two Chief Executive Officers who have allegedly ignored the asset declaration law. Supporting his case with evidence from a Right to Information (RTI) response from the Auditor-General, Asare's application highlights a systemic failure among top leadership. Notable figures implicated in the probe include Dr. Randy Abbey, Ahiafor, and Agalga, along with several others who remain in post despite their non-compliance. The leadership crisis is particularly acute at the Ghana Cocoa Board (COCOBOD), where Chief Executive Dr. Randy Abbey is facing dual pressure from legal challenges and labor unrest. The National Cocoa Farmers Association of Ghana has joined the fray, calling for a comprehensive 'house cleaning' at the institution. Association Public Relations Officer Yaa Asantewaa has demanded the dismissal of Dr. Abbey and his entire executive team, citing leadership incompetence that has allegedly crippled the management of the cocoa sector. While an emergency Cabinet meeting has been scheduled to address these concerns, farmers have signaled that their primary priority remains the immediate release of unpaid arrears and the stabilization of cocoa prices. The intersection of these legal and administrative failures suggests a broader governance challenge for the Mahama administration. Cocoa farmers have warned of further action if their debts remain unsettled, suggesting that the recent establishment of the Ghana Gold Board may have diverted the government’s focus and resources away from the vital cocoa sector. As the March 2025 deadline approaches, the administration’s willingness to enforce sanctions against non-compliant officials will serve as a critical test of its commitment to transparency and constitutional adherence. For now, the focus remains on the High Court's response to the mandamus application and the government's ability to satisfy the financial demands of the nation's cocoa producers.

politics|11th February

"Rivers Die While CSOs Debate Airport Names": John Awuah Slams Galamsey Response as Political Gimmickry

John Awuah, the President of the Ghana Association of Banks, has issued a scathing indictment of the nation's ongoing struggle against illegal mining, popularly known as galamsey. In a series of pointed remarks, Awuah characterized the government’s various interventions as ineffective political maneuvers and criticized civil society organizations (CSOs) for what he described as a failure of leadership and misplaced priorities. He warned that the persistence of galamsey constitutes an existential threat to the country, highlighting that despite numerous state-led efforts, Ghana's vital water bodies remain heavily polluted and poisoned. Developing his critique of the government, Awuah targeted a long list of state-sponsored task forces and initiatives, including Operation Vanguard, the Inter-Ministerial Committee on Illegal Mining (IMCIM), Blue Water Guards, and the National Assay and Information Management System (NAIMOS). He labeled these programs as "expensive political creations" that have yielded "complete non-performance" and "next to nothing" in terms of actual results. The banker questioned the genuine intent behind these measures, suggesting they often serve as political gimmicks intended to placate the public rather than solve the deep-rooted environmental crisis. Awuah further extended his criticism to Ghana’s civil society and national institutions, accusing them of losing their "moral voice." He noted with disappointment that many CSOs appear more focused on media-heavy, trivial debates—such as the potential renaming of Kotoka International Airport—than on the life-threatening reality of environmental destruction. He urged these organizations to move beyond "hollow noise" and media appearances toward genuine activism that produces tangible outcomes. While he lamented the silence of various national and religious bodies, he did single out journalist Erastus Asare Donkor and the Multimedia Group for praise, citing their commitment to developmental journalism in exposing the mining crisis. In his closing remarks, Awuah cautioned against the national fixation on gold revenue at the expense of public health and environmental sustainability. He emphasized that the economic gains from gold exports are misguided if they lead to a poisoned landscape and a health crisis for future generations. Calling for a unified and relentless national effort, he urged citizens and institutions to maintain sustained pressure on the government to ensure that the fight against illegal mining is treated with the seriousness it deserves, prioritizing the preservation of life and nature over short-term political or economic interests.