Accra: In a landmark development for Ghana's mining sector, the export of gold from the small scale mining sector has, for the first time, surpassed that from the large scale sector. This was revealed by the Finance Minister during the mid-year budget review, marking a significant shift in the country's gold export dynamics.
According to Ghana News Agency, the Finance Minister highlighted that the small scale sector exported 51.5 tonnes of gold in the first half of 2025 alone, generating approximately $5 billion in export value. This milestone underscores the growing importance of small scale mining in Ghana's economy.
In addition to the mining sector achievements, President John Dramani Mahama has issued a directive prohibiting government contracts from being denominated in foreign currency. This move aims to stabilize the local currency and strengthen the nation's economic sovereignty.
The Finance Minister also addressed the pressure on the public wage bill due to last-minute recruitments in late 2024. To optimize revenue collection, the government plans to adopt artificial intelligence, minimizing human interference in revenue assessments.
Despite these challenges, the Finance Minister assured that there would be no request for additional funds and announced plans to reduce borrowing by GHS4.3 billion. The revised revenue targets are set at GHS227 billion, slightly down from the previous GHS229 billion.
The government intends to reopen the domestic bond market to manage debts effectively and has presented 22 priority projects to the Official Credit Committee and the International Monetary Fund (IMF). In a positive fiscal development, Ghana's public debt has decreased by GHS113 billion over six months.
As part of ongoing economic reforms, the government has completed discussions with the IMF on VAT reforms and plans to introduce a flat VAT rate for businesses. Additionally, the COVID-19 levy will be abolished, and the National Investment Bank will be listed on the Ghana Stock Exchange.
The Finance Minister reported substantial improvements in the external sector, with an increase of $2.14 billion in external reserves over six months. Deliberate policies announced in the 2025 budget have significantly stabilized the Ghana Cedi, reversing depreciation trends from previous years.
The budget deficit has been primarily financed through domestic sources, achieving a saving of GHS4.9 billion on domestic interest payments by mid-2025 due to prudent debt management. Inflation rates have also fallen, attributed to deliberate government efforts, targeting an 11.9 percent inflation rate ahead of schedule.
Despite inherited economic challenges, the current administration has restored collaboration between the central bank and the Finance Ministry, ensuring cohesive policy-making. The Finance Minister emphasized that the government's approach is not merely to manage decline but to reset and rejuvenate the economy.
The mid-year budget review session saw a walkout by the New Patriotic Party (NPP) Minority Caucus over electoral violence issues. Meanwhile, cement prices have been urged to drop as the government prepares for its 'Big Push' infrastructure initiative.
This comprehensive review of Ghana's economic landscape reflects a period of significant progress, with strategic measures set to sustain and enhance the country's economic growth trajectory.
