Our 'New Economy' policy will discourage Ghana from exporting raw materials - Ato Forson

Finance Minister Dr Cassiel Ato Forson

Finance Minister Dr Cassiel Ato Forson says the government's proposed New Economy framework is intended to transform Ghana's economic structure by moving away from the longstanding dependence on exporting raw commodities without adequate local processing and value addition.

He said the strategy would prioritise industrial development, local production and private sector investment while ensuring strict financial discipline and value for money in the use of public funds.

Addressing the National House of Chiefs in Kumasi ahead of the government's upcoming budget presentation, Dr Ato Forson warned that rising youth unemployment could threaten national stability if the country failed to create sufficient opportunities for its growing population.

He argued that Ghana needed to move towards a production-oriented economy driven by the private sector, noting that the expansion of the population had not been matched by corresponding growth in employment opportunities.

"Our population has grown faster than the opportunities available to many of our young people," Dr Ato Forson said, stressing "if we fail to act, today's employment challenge could grow into an explosive social crisis".

The Finance Minister also questioned the long-term effectiveness of temporary employment initiatives such as the National Builders Corps (NABCO) and the Youth Employment Agency (YEA), saying they could no longer be relied upon as the main response to youth unemployment.

"It is a fact that temporary jobs such as NABCO and YEA models cannot be the solution to create jobs for our young people," Dr Forson emphasised, adding that "the temporary models may offer immediate relief and experience to our people, but our young people need dependable livelihoods beyond the end of the placement of these temporary models. Their future cannot depend on moving from one temporary opportunity to the next".

He disclosed that Ghana's population had increased by approximately 16 million over the past 25 years, putting additional pressure on the economy to generate jobs for the growing number of young people entering the labour market.

Although access to education had expanded and more young people had acquired academic qualifications, he said the economy had struggled to provide sufficient employment opportunities for graduates.

"We have expanded access to education and trained more young people. But too many emerged with knowledge and ambition into an economy that has too little room for their future," he lamented and asserted that "a demographic dividend must be earned by giving healthy education and skilled jobs to our people".

Dr Ato Forson maintained that government alone could not address the employment challenge, insisting that private businesses must take the lead in creating sustainable jobs through increased production and investment.

"The truth remains that the government alone cannot create the jobs our people need. The private sector must be the one to lead."

He cautioned that without a fundamental change in the country's economic direction, many educated young people could be compelled to travel abroad in search of better opportunities, only to face further difficulties.

The Minister announced that the government's 4-year economic transformation strategy would be formally unveiled on Thursday, November 12, 2026.

He described the New Economy framework as a comprehensive plan to restructure Ghana's economy, strengthen its industrial base and establish the country as a major production hub in West Africa.

"The new economy is the government of Ghana's four-year programme to transform the structure of the Ghanaian economy because the old pattern has obviously failed our people."

"It is a vision that will help Ghana produce more of what it needs, add greater value to what it owes, and create lasting prosperity." Dr Forson expounded.

He urged traditional authorities to use their influence and leadership roles to build national support for the initiative as government prepares to implement the policy.

Dr Ato Forson also pledged to maintain strict oversight of public expenditure to ensure that resources allocated to the programme deliver tangible benefits to Ghanaians.

"As your Minister for Finance, I will insist on discipline and value for money in every cedi the government spends, so that the money can be put to proper use to benefit the people of Ghana."

"With your wisdom and partnership, we can give that future a firmer foundation," the Minister affirmed.