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Accra, Feb. 27, – President John Dramani Mahama has reaffirmed his government’s commitment to revitalising Ghana’s cocoa industry, assuring farmers that ongoing reforms will lead to a comprehensive transformation of the sector.
Presenting the 2026 State of the Nation Address (SONA) to Parliament, he explained that the administration had taken difficult but necessary steps, including revising the producer price of cocoa. The move, he said, was aimed at ensuring competitive pricing while addressing a GH¢32.9 billion financial burden within the sector that government was required to settle.
He cautioned that failure to confront these obligations would have reversed recent economic gains and plunged the country back into severe instability.
While acknowledging concerns and protests from cocoa farmers, President Mahama emphasised that the reforms would ultimately deliver a more sustainable and equitable system. He said the measures would guarantee fair and transparent pricing that reflects production costs and allows farmers to earn reasonable returns.
The President stressed that sound economic decision-making was essential to preventing hardship and safeguarding national progress.
“These are not easy choices, but they are necessary to secure the well-being of our people,” he stated.
Beyond the cocoa sector, President Mahama highlighted a series of fiscal interventions undertaken by his administration. These include the removal of several taxes introduced between 2017 and 2024, such as the E-Levy, Betting Tax, Emission Tax and COVID-19 Levy.
He also pointed to reforms in the Value Added Tax (VAT) system, including the elimination of the one per cent COVID-19 Levy, the separation of GETFund and the National Health Insurance Levy from VAT, and a reduction in the effective VAT rate from 21.9 per cent to 20 per cent.
Additional measures include raising the VAT registration threshold to GH¢750,000 to ease the burden on small businesses, as well as extending zero-rated tax treatment on textiles until 2028.
According to the President, these fiscal adjustments have collectively returned about GH¢6 billion to citizens, easing financial pressures on households and enterprises.
He further indicated that interest rates had declined significantly from above 30 per cent to between 18 and 20 per cent, improving access to credit for businesses and individuals.
Citing data from the Ghana Statistical Service, President Mahama said more than one million jobs were created between the first and third quarters of 2025, alongside notable progress in reducing multidimensional poverty.
On the external front, he reported a strong improvement in Ghana’s balance of payments, with the current account recording a surplus of GH¢9.1 billion by December 2025, equivalent to 8.1 per cent of GDP. This marks a substantial rise from GH¢1.5 billion, or 1.8 per cent of GDP, in 2024.
He attributed the gains to increased earnings from gold, cocoa and non-traditional exports, as well as higher remittance inflows, noting that these trends signal renewed resilience in the economy.
President Mahama also highlighted progress on the government’s flagship 24-Hour Economy and Accelerated Export Development Programme, launched in 2025 to stimulate continuous economic activity and strengthen value chains.
He said Parliament passed the 24-Hour Economy Authority Bill on February 6, 2026, providing the legal framework for full implementation, and that he had since assented to the legislation.
Describing the initiative as one of the most ambitious economic transformation programmes in recent history, the President disclosed that GH¢110 million had been allocated in the 2026 budget to support its rollout.
He explained that the programme would enable businesses to operate beyond traditional hours, boost productivity, expand exports and generate employment across sectors such as agriculture, manufacturing, logistics and services.
To support implementation, government will collaborate with institutions including the Development Bank of Ghana and the Ghana Infrastructure Investment Fund to attract investment and strengthen long-term growth prospects.
President Mahama also announced plans to introduce new legislation to enhance governance and accountability. These include stricter procurement rules to limit sole-sourcing to exceptional cases, and a requirement for parliamentary approval before any sale or lease of state assets.
He underscored the importance of learning from past economic challenges, noting that Ghana was only beginning to recover from one of the most severe crises in its recent history.
GHBUSS
February 27, 2026
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