BoG Cuts Policy Rate to 18% as Parliament Abolishes COVID-19 Levy

Today's news highlights substantial shifts in Ghana's fiscal and monetary framework. The Bank of Ghana has announced a major reduction in the policy rate to stimulate the economy, while Parliament has successfully passed the bill to repeal the COVID-19 Health Recovery Levy. Alongside these significant domestic policy changes, regional attention is fixed on the political instability in Guinea-Bissau. Meanwhile savvy investors are encouraged to look toward seasonal opportunities in the food sector. Let's analyze the latest data and emerging trends shaping Ghana's economic landscape.

Market Movers:

Today’s Cedi Board indicates a uniform and significant reduction in yields across all government securities compared to the previous session.

• The 91-day Treasury Bill settled at 10.83%, dropping by 14.63 percentage points from 25.46% on November 25, 2024.

• The 182-day bill is recorded at 11.92%, down by 12.63 percentage points from the previous rate of 24.55%.

• The 364-day bill closed at 11.55%, a decrease of 11.42 percentage points from 22.97%.

Key Headlines:

Bank of Ghana cuts policy rate to 18%, brings back 14-day treasury bill

The Bank of Ghana (BoG) has lowered its monetary policy rate by 350 basis points to 18%, citing improved macroeconomic conditions. With headline inflation falling to 8.0% in October 2025, the central bank appears to be pivoting towards supporting economic recovery. This significant rate cut suggests that the monetary authority is comfortable with the current disinflation path and is now prioritizing credit growth and business expansion.

In a related operational shift, the BoG has reintroduced the 14-day treasury bill as its primary instrument for open market operations. This move aims to enhance the management of liquidity within the banking system. By utilizing a 14-day cycle, the central bank seeks to influence short-term interest rates more effectively, ensuring that the new policy rate transmits efficiently to the broader market.

Parliament passes Value Added Tax Bill, abolishes COVID-19 Levy

Parliament has passed the Value Added Tax Bill, 2025, which notably includes the repeal of the COVID-19 Levy. This legislative change removes the 1% levy that was introduced during the pandemic, a move the government estimates will save individuals and businesses approximately GH¢3.7 billion in 2026. The abolition of this levy fulfills a key fiscal promise and is intended to reduce the overall tax burden on the citizenry.

The bill also introduces a unified VAT structure to replace the previous flat-rate system. This reform is designed to simplify tax administration and improve compliance. Furthermore, the legislation raises the VAT registration threshold, which will likely exempt numerous small and micro-enterprises from the tax net. This structural adjustment points towards a strategy of broadening the tax base through efficiency rather than higher rates.

Ghana condemns Guinea-Bissau coup, demands immediate return to constitutional rule

The Government of Ghana has formally condemned the military coup in Guinea-Bissau that occurred on November 26, 2025. Following the military's seizure of power and the arrest of President Umaro Sissoco Embaló, Ghana has called for the immediate restoration of constitutional order. The government’s statement emphasizes that electoral disputes must be resolved through established legal processes rather than force. This diplomatic stance reinforces Ghana's commitment to democratic principles within the ECOWAS region, viewing the coup as a threat to regional stability and governance.

Investor’s Insight: This festive season, frozen-food bundles may be the most underrated money maker.

The upcoming Christmas season creates a specific, high-demand window for frozen proteins. As households and event planners stock up on chicken, beef, and seafood for the holidays, a temporary supply gap often emerges. This presents a viable opportunity for anyone looking to make some extra cash to bridge the gap between wholesale suppliers and retail consumers.

The strategy involves purchasing frozen goods in bulk from cold stores or abattoirs and repackaging them into curated bundles, such as "Family Packs" or "Party Mixes." This approach adds value through convenience, allowing customers to avoid crowded markets. Because this business model relies on immediate seasonal consumption, the risk of holding unsold stock into January is relatively low. Even without a permanent storefront, individuals can generate profit by focusing on packaging and delivery during this peak consumption period.

Trending Topic: #GuineaBissau

The hashtag #GuineaBissau is trending in Ghana following the military coup on November 26, 2025. The event has triggered widespread conversation on social media, driven largely by Ghana's strong official condemnation of the takeover.

The discussion on platforms like X (formerly Twitter) reflects deep concern over regional stability. Users are debating the implications of yet another coup in West Africa, often referred to as "coup contagion." The narrative is further complicated by the military junta's claims regarding drug trafficking and corruption as justifications for their actions. For many Ghanaians, this trend highlights the delicate state of democracy in the sub-region and raises questions about the effectiveness of regional bodies like ECOWAS in preventing such unconstitutional changes of government.

Conclusion

Today’s economic landscape is defined by aggressive monetary easing and fiscal relief measures. The BoG’s rate cut and Parliament’s removal of the COVID-19 levy signal a coordinated effort to reduce costs for businesses and consumers. While the sharp drop in T-Bill yields reflects these policy shifts, the political instability in Guinea-Bissau provides a sobering backdrop of regional risk. These developments suggest a domestic focus on economic stimulation as the year closes, tempered by a vigilant eye on regional security.

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