The reset blueprint

By Surv. Prof. Forster Sarpong

Six months into the ambitious “Ghana Reset Agenda” championed by President John Dramani Mahama in his second administration, the national narrative is undergoing a paradigm shiftfrom the rhetoric of political change to the rigour of economic science.

After enduring prolonged fiscal mismanagement, double-digit inflation, and a spiralling debt crisis, Ghanaians sought more than just a change in leadership, they demanded a credible framework for sustainable growth.

That framework is emerging not from populist gestures, but from the deliberate application of fiscal discipline, institutional accountability, and data-driven policymaking.

At its core, Ghana’s reset is not merely a political transition, it is a systemic recalibration rooted in economic fundamentals, behavioural insights, and financial innovation.

This article explores the structural pillars of Ghana’s economic revival, assesses the measurable progress achieved in the first half of 2025, and outlines the disciplined, reform-driven path that lies 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 13.9% 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:

1. 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.

2. Revenue Expansion through Digitisation:

Upgrading GRA’s digital platforms, broadening the tax net, and targeting the informal sector with mobile-based tax compliance systems.

3. 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.

4. 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:

1. Inflation has declined to 31.2% as of May 2025 (BoG, June 2025 report), due to tight monetary and fiscal coordination.
2. 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.

3. 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.
4. 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:

1. 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.

2. 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.

3. 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.

4. 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:

1. 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).

2. Institutional Independence:

Shield BoG, Auditor-General, and EOCO from political interference.

3. Citizenship Engagement:

Foster tax morale and civic participation through public education and digital platforms for monitoring local projects.

4. 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:

1. Debt Overhang:

Even post-restructuring, Ghana’s interest payments consume nearly 38% of domestic revenue.

2. Political Populism:

Resistance to utility tariff adjustments and subsidy reforms could derail the fiscal balance.

3. Public Sector Resistance:

Bureaucratic inertia, rent-seeking behaviour, and capacity gaps could frustrate reforms.

Staying the Course: Discipline as the Differentiator

At the six-month mark of the Ghana Reset, early indicators point toward cautious progress. Inflation is stabilising, investor sentiment is gradually improving, and structural reforms are gaining traction. Yet, history cautions that the momentum of reform can easily dissipate in the face of political expediency, bureaucratic inertia, or economic shocks.

The defining factor between yet another policy cycle and a true economic transformation is discipline—not just in fiscal terms, but as a national ethos. Sustained sacrifice, institutional credibility, and evidence-led governance must underpin every decision. The reset is not a sprint; it is a disciplined marathon.

For Ghanaian citizens, the signal is unmistakable: this is not a populist windfall but a long-term restructuring. For the private sector, the emerging stability is a green light for renewed investment—anchored by policy coherence and macroeconomic clarity. For the civil service, the reset presents a mandate: reform your systems or step aside. And for the government, this is a reminder that resets are not single policy acts but living ecosystems requiring daily calibration, coordination, and conviction.

If Ghana can hold this trajectory, what began as a recovery plan could evolve into a generational economic renewal, one grounded in science, sustained by discipline, and secured by the collective will to change.