2026 Budget: COVID-19 Levy Scrapped and New Accra-Kumasi Expressway Confirmed

Today's daily Cedi Board shows a significant drop in Treasury bill rates across all short-term instruments. This rate movement occurs alongside major economic announcements from the 2026 Budget, including the scrapping of the COVID-19 Levy and confirmation of the new Accra-Kumasi Expressway. Simultaneously, the commissioning of the $1.5bn Tema Port Expansion project signals a major push in infrastructure. However, an interesting paradox emerges as T-bill investors appear to be holding back, despite a backdrop of falling inflation. Let's analyze the latest data and emerging trends shaping Ghana's economic landscape.

Market Movers: T-Bill Rates Continue Downward Trend

Today’s data shows a pronounced downward trend in Treasury bill yields compared to the same time last year. The rates are as follows:

• 91-Day T-Bill: 10.64% (Down by 14.50 percentage points from 25.14% on Nov. 14, 2024)

• 182-Day T-Bill: 11.86% (Down by 12.44 percentage points from 24.31% on Nov. 14, 2024)

• 364-Day T-Bill: 11.52% (Down by 11.04 percentage points from 22.56% on Nov. 14, 2024)

This significant year-on-year drop in rates suggests a different borrowing environment for the government compared to the previous year.

Key Headlines: 2026 Budget Introduces Major VAT Reforms & New Infrastructure

2026 Budget Introduces Major VAT Reforms, Scraps COVID-19 Levy

In the 2026 Budget Statement, Finance Minister Dr. Cassiel Ato Forson announced the abolishment of the 1% COVID-19 Health Recovery Levy. This move is expected to put approximately GH₵3.7 billion back into the hands of individuals and businesses in 2026. This is part of a broader VAT reform package, which includes reducing the overall effective VAT rate from 21.9% to 20% and significantly raising the VAT registration threshold from GH₵200,000 to GH₵750,000. This higher threshold is aimed at providing relief to small and micro enterprises. The reforms, projected to return nearly GH₵6 billion to households and businesses, appear to be a strategy focused on easing the cost of living and reducing the cost of doing business, which could in turn stimulate private sector growth.

Government Confirms New Accra-Kumasi Expressway Project

The 2026 Budget also confirmed the construction of a new Accra-Kumasi Expressway, a six-lane, 198.7 km highway. This project, part of the government's "Big Push" Infrastructure Programme, will follow a new alignment, shortening the distance from the current 250 km. This change is expected to nearly halve travel time and reduce transport costs by an estimated 40%. The project, which includes eight major interchanges and three bridges, is slated to be fully financed through domestic resources, with GH₵30.8 billion allocated for the road component of the programme in the budget. With a projected creation of over 30,000 jobs during construction, this expressway represents a significant planned investment in Ghana's core transport network, distinct from the ongoing dualization of the existing road.

$1.5bn Tema Port Expansion (Phase 1 & 2) Commissioned

In a separate major development, President John Dramani Mahama officially commissioned Phases 1 and 2 of the $1.5 billion Tema Port Expansion Project. This public-private partnership has delivered state-of-the-art facilities, including a 1.4-kilometer quay, four deep berths capable of handling some of the world's largest container ships, and an expanded 1.27 million square meter terminal yard. This development is designed to transform Ghana into a competitive trade and logistics hub for West Africa. The port's capacity is set to increase from 800,000 TEUs to a potential 3.7 million TEUs. This enhanced capacity is expected to reduce turnaround times and business costs, aligning with the African Continental Free Trade Area (AfCFTA) vision and the government's "24-hour economy" policy.

Investors Insight: Why Are T-Bill Investors Holding Back Despite Falling Inflation?

Today's Cedi Board points to a key investor insight: T-bill investors are holding back. This observation is supported by recent market data showing a GH¢6.83 billion offer in Treasury bills was met with only GH¢4.51 billion in bids, resulting in a 33% undersubscription. This marks the fourth consecutive week of such a shortfall. This hesitation is notable because it occurs while inflation is reportedly declining, a condition that would normally make the fixed returns on T-bills more attractive.

The market's behavior suggests a strategic hold-off. Investors may be anticipating that the government, faced with consistent undersubscriptions, will need to offer higher yields in upcoming auctions to attract the funds it requires. This expectation could be driving the preference for short-term exposure, with 80% of recent bids reportedly going to the 91-day bill, as investors avoid locking in current rates for longer. This situation likely represents a form of market signaling, where investors are waiting for a better deal. For the government, this trend could mean its short-term borrowing costs may face upward pressure to meet financing targets.

Trending Topic: Why #2026Budget is Dominating Discussions

The #2026Budget is trending across Ghana following its presentation in Parliament. The widespread discussion appears to be driven by the significant economic claims and bold policy shifts announced. A central topic is the report of a major economic turnaround, with claims of public debt falling to 45% of GDP by October 2025, inflation dropping to 8%, and the cedi appreciating over 35% year-to-date.

Beyond the headline numbers, the budget's flagship initiatives are fueling the conversation. The "24-Hour Economy" policy, projected to create up to 800,000 new jobs, is a major talking point. This is coupled with the significant tax reforms, including the scrapping of the COVID-19 levy and e-levy, which are being discussed as potential relief for household budgets and businesses. Furthermore, the "Big Push" infrastructure agenda, which allocates GH₵30.8 billion for projects like the Accra-Kumasi expressway and provides funding for trainee allowances, is driving engagement. Reports of improved fiscal discipline, such as a 90% surge in ECG revenue and a planned primary surplus, are also being cited. This combination of economic recovery data, large-scale infrastructure plans, and tangible tax relief measures has placed the budget at the center of public discourse.

Your Key Takeaways

Today’s economic picture presents a fascinating contrast. On one hand, the daily Cedi Board data shows a significant year-on-year decline in T-bill rates. Yet, investor insight suggests a cautious short-term market, with participants possibly anticipating higher future yields, leading to recent undersubscriptions. This caution exists alongside major government announcements from the #2026Budget, which aim to stimulate growth through significant tax reforms, such as scrapping the COVID-19 levy. Major infrastructure projects, like the newly commissioned Tema Port and the confirmed Accra-Kumasi expressway, signal a long-term strategy focused on positioning Ghana as a key logistics and trade hub. These parallel developments in public finance and infrastructure will be critical to watch in the coming months.

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