By Surv. Prof. Forster SARPONG
Six months into the “Ghana Reset Agenda” led by former President John Dramani Mahama in his second coming, the national conversation is shifting from the politics of change to the science of sustainability.
Faced with years of economic turbulence, runaway inflation, and mounting public debt, Ghanaians yearned not just for new leadership but for a new logic. That logic, grounded in fiscal discipline, structural reforms, and evidence-based policy, is beginning to shape a new development narrative—one built not on populism, but on prudence.
Ghana’s reset is not just political; it is scientific. It rests on core principles of economics, behavioural change, institutional reform, and financial engineering. This article examines the pillars of this transformation, the results so far, and the disciplined road ahead.
- The Context: Ghana’s Pre-Reset Economy
Before the reset in January 2025, Ghana’s economy was reeling from:
- Inflation of 54.1% (Dec 2023, GSS),
- Public debt exceeding GH₵610 billion, representing over 88% of GDP,
- High interest rates with the Bank of Ghana policy rate at 30% (2024),
- A cedi in freefall, depreciating from GH₵6.2 to GH₵13.5 per USD between 2021–2024,
- Mass youth unemployment estimated at 9% nationally (GSS, 2023),
- IMF support and debt restructuring under the G20 Common Framework.
Confidence in state institutions and currency management had eroded. Public services lagged. Corruption perception worsened. The social contract was frayed. The need for a systemic reset became urgent.
- The Reset Plan: Structure Over Slogans
In his January 7th, 2025 inauguration speech, President Mahama introduced the “Ghana Reset Agenda” a compact of bold measures anchored on four pillars:
- Fiscal Clean-Up and Rebalancing:
Reducing recurrent spending, eliminating ghost names on public payroll (saving GH₵2.4 billion in Q1 alone), and restructuring ministries to cut administrative duplication.
- Revenue Expansion through Digitisation:
Upgrading GRA’s digital platforms, broadening the tax net, and targeting the informal sector with mobile-based tax compliance systems.
- Agricultural Productivity Boost:
The “Agri Reset Program” invested GH₵1.2 billion into irrigation, agro-processing, and mechanisation. By June 2025, maize output had increased by 14% in the Bono and Northern regions.
- State-Owned Enterprise (SOE) Reform:
Boards of 15 loss-making SOEs were dissolved. TOR, ECG, and Ghana Water Company are undergoing performance-based restructuring with a 12-month transformation KPI plan.
- Results So Far: Green Shoots or False Start?
Though early days, some gains are already visible:
- Inflation has declined to 31.2% as of May 2025 (BoG, June 2025 report), due to tight monetary and fiscal coordination.
- Cedi Stabilisation:
The cedi has appreciated marginally to GH₵12.2 per USD, buoyed by increased forex reserves and discipline in BoG’s forward FX sales.
- Growth Momentum:
Ghana’s real GDP grew by 4.9% in Q1 2025 (IC Research, June 2025), driven by services, agriculture, and energy.
- Tax Revenue-to-GDP Ratio increased from 13.5% in 2024 to 15.1% by May 2025, on track for the 18% medium-term target.
- Public wage bill trimmed by 0.6% of GDP through biometric payroll audits and rationalisation of salary scales.
- The Science Behind the Reset: Beyond Good Intentions
What makes this reset different is its reliance on financial science and institutional discipline:
- Behavioural Economics
Policies now recognise that Ghanaian citizens and businesses respond to incentives. The government offers utility bill discounts for tax-compliant SMEs, and mobile micro-credit for registered informal sector players, linking formalisation to tangible benefits.
- Macroeconomic Coordination
A newly established Fiscal Council and Monetary Policy Dialogue Forum meets quarterly to align fiscal and monetary targets, reducing policy contradictions between BoG and MoF.
- Public Financial Management (PFM) Systems
Rollout of IFMIS (Integrated Financial Management Information System) across all 16 regions ensures real-time tracking of budget execution, plugging leakages.
- Data-Driven Governance
The reset includes mandatory publication of Monthly Fiscal Reports, Procurement Dashboards, and SOE Performance Scorecards, enhancing transparency and decision-making accuracy.
- Basic Disciplines Required for Sustainability
Transformation without discipline is short-lived. For Ghana’s reset to hold, the following foundational behaviours must persist:
- Political Will:
Resist election-year overspending. Embed fiscal rules in law, not just policy (e.g., a Fiscal Responsibility Amendment Bill to cap deficits at 3% of GDP).
- Institutional Independence:
Shield BoG, Auditor-General, and EOCO from political interference.
- Citizenship Engagement:
Foster tax morale and civic participation through public education and digital platforms for monitoring local projects.
- Meritocracy in Public Appointments: End the “jobs for the boys” culture; base hiring and promotions on competence and service delivery KPIs.
- Risks and Roadblocks
Despite progress, threats loom:
- Debt Overhang:
Even post-restructuring, Ghana’s interest payments consume nearly 38% of domestic revenue.
- Political Populism:
Resistance to utility tariff adjustments and subsidy reforms could derail the fiscal balance.
- Public Sector Resistance:
Bureaucratic inertia, rent-seeking behaviour, and capacity gaps could frustrate reforms.
Staying the Course
Six months into the Ghana Reset, the signs are cautiously optimistic. But history warns us that initial reforms often lose steam under pressure. Ghana must resist relapse. The difference between another failed economic cycle and a true transformation lies in discipline the science of sustained sacrifice, institutional credibility, and data-informed governance.
For citizens, the message is clear: this is not a quick fix but a long climb. For the private sector, it’s a signal to invest again, backed by policy stability. For civil servants, it is a call to reform or retire. And for government, it is a reminder that resets aren’t events they are ecosystems sustained by discipline.
If Ghana stays the course, this reset could be the beginning of a generational turnaround.
