President John Dramani Mahama hailed significant improvements in Ghana’s business environment during his address at the Kwahu Business Forum 2026.
Speaking to a gathering of business leaders and entrepreneurs, President Mahama highlighted the significant strides that the country had made in improving its business environment, showcasing notable improvements in foreign direct investment (FDI), domestic investment, and overall macroeconomic stability.
The Kwahu Business Forum, an annual event that serves as a key platform for discussing business and economic issues in Ghana, saw President Mahama take the stage to update the audience on the nation’s economic progress, particularly since the last forum.
His speech focused on a range of economic indicators, including inflation, interest rates, government borrowing, and economic resilience.
President Mahama expressed satisfaction with the current state of Ghana’s business environment, stating that it had improved significantly compared to previous years.
He credited this improvement to the government’s economic policies, which have contributed to increased business confidence.
“I’m happy to report to you that the business environment is much, much, much better than it was before,” President Mahama said, highlighting a resurgence of optimism among both domestic and international investors.
The president pointed to the rise in foreign direct investment (FDI), as well as an increase in domestic investment, as key indicators of the country’s growing economic appeal.
He explained that the improved confidence in Ghana’s economy had been driven by the government’s commitment to stabilising the macroeconomic environment and reducing its reliance on external debt.
“Foreign direct investment is increasing, and even domestic investment is increasing,” he noted.
One of the major achievements President Mahama pointed to was the reduction in government borrowing, both from the treasury and the banks.
He explained that this reduction had created more room for the private sector to access credit, which had previously been limited due to the crowding-out effect caused by high government borrowing.
“Government’s appetite for debt has gone down. We’re borrowing less from the treasury market, and we’re borrowing less from the banks,” President Mahama stated.
This shift has helped banks, which previously had less liquidity due to government borrowing, to now focus on lending to the private sector.
He remarked that with banks holding large amounts of liquid assets and low interest rates on treasury bills, there is now more room for businesses to secure financing.
“With treasury bill rates low, if you put your money in treasury bills, you won’t get much. And so you must look to the private sector to give financing.”
This shift in focus has created a more favourable environment for businesses seeking credit and financing.
President Mahama also took time to praise the decrease in interest rates, which has had a major impact on the affordability of credit in the country.
Interest rates, which were at an alarming 32 per cent in 2024, have now fallen dramatically. President Mahama pointed out that loans were now available at much lower rates, with some businesses borrowing at as low as 9 per cent or 10 per cent.
“In 2024, interest rates were about 32%. Today, I heard of somebody who borrowed at 10%, 9%,” Mahama said, emphasising that this drop in interest rates was a key factor in creating a better business environment.
The reduction in borrowing costs is expected to benefit not just large corporations but also small and medium-sized enterprises (SMEs), which are critical to the growth of the economy.
Mahama’s speech focused on macroeconomic stability. He stressed that maintaining economic stability had been a key priority for his administration and that significant progress had been made in achieving this goal.
By stabilising the macroeconomic environment, the government has created a more predictable and conducive environment for businesses to operate.
“Inflation is down, and so it allows us to have more predictable pricing,” Mahama noted, emphasising that controlling inflation has provided more clarity for both businesses and consumers in terms of pricing and spending.
With inflation now under control, businesses can better forecast their costs, while consumers are not burdened by unpredictable price hikes.
“We have focused on stabilising the macroeconomic environment, and we have done so,” he said.
This has allowed businesses to plan for the future with more certainty, a critical factor for long-term investment and growth.
President Mahama also addressed the importance of building an economy that can withstand external shocks.
He pointed to the ongoing geopolitical tensions in the Middle East, particularly between Iran and Israel, as an example of the kind of external events that can disrupt global markets and trade.
Despite these uncertainties, he expressed confidence in Ghana’s economic resilience.
“Our economy has shown some resilience,” he said, noting that Ghana had built a robust economic structure capable of weathering such external shocks.
He provided reassuring statistics, mentioning that the country currently had nearly six months of export cover, which helps cushion the impact of any potential disruptions to trade.
Additionally, President Mahama assured the forum that Ghana’s petroleum reserves were secure, with enough stock to cover the next six weeks.
“We have about six weeks of petroleum stock in our tanks. So there’s no danger of us running out of petroleum within the next six weeks,” he stated, easing concerns about potential energy shortages.
The President emphasised the importance of creating a resilient economy that could withstand both internal and external challenges.
He reiterated that while external shocks, such as geopolitical conflicts and global economic downturns, are beyond the country’s control, Ghana must continue to focus on building an economy that can absorb these shocks without significant damage.
“We know that shocks will come; you cannot predict external events. But you must create an economy that is able to withstand those shocks,” he said, reinforcing the idea that economic resilience is key to ensuring long-term growth and stability.
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