Ghana’s Economy Gets a Triple Boost: ₵2.9bn Agric Funding, Record Pension Assets, and Interest Rate Cuts Ahead

Ghana’s economy is entering the second half of 2025 with powerful tailwinds, a multibillion-cedi investment in agriculture, record-breaking pension fund growth, and a forecast of lower interest rates to stimulate lending and growth.

₵2.9 Billion Agric Investment to Drive Food Security and Reduce Imports

The agriculture sector is poised for transformation as the government and development partners commit ₵2.9 billion to boost food security under the 2025–2028 Medium Term Expenditure Framework. The funding, ₵1.61 billion from government sources and ₵1.3 billion from development partners, will power the flagship Feed Ghana programme, as well as mechanisation, irrigation, livestock development, and post-harvest infrastructure.

A standout initiative is the “RedGold” National Palm Oil Industry Policy, aimed at slashing Ghana’s $2 billion annual palm oil import bill. This includes distributing 1.5 million seedlings, creating large-scale out-grower schemes, and expanding local processing capacity. The programme is expected to create thousands of jobs and accelerate agro-industrial transformation.

Pension Assets Hit Record ₵86.23 Billion in 2024

Ghana’s pension fund industry reached an all-time high of ₵86.23 billion in 2024, a 39.5% jump from ₵61.8 billion in 2023. The surge reflects tighter enforcement against defaulting employers, government arrears repayment, and stronger investment returns.

Private pensions (Tier 2 and Tier 3) grew by 37.4% to ₵63.88 billion, while SSNIT’s Basic National Social Security Scheme assets rose from ₵15.3 billion to ₵22.4 billion.

Investments are becoming more diversified, with government securities’ share falling to 72% and allocations to equities and collective investment schemes rising sharply. a shift that could improve long-term returns.

Interest Rate Cuts to Continue Through 2026

Following a 300-basis-point cut in July 2025, the Bank of Ghana is expected to lower the policy rate further to 23.00% by end-2025 and 20.00% by end-2026, according to Fitch Solutions. The easing cycle is supported by stable gold prices, a resilient cedi, and projected declines in inflation from 22.9% in 2024 to 15.5% in 2025 and 12.2% in 2026.

Lower rates could make borrowing cheaper for businesses and households, potentially fuelling investment, expansion, and job creation in the years ahead.

Investor Insight

MTN Ghana shares are up 58.80% year-to-date (YTD), trading at ₵3.97 as of August 12, 2025, signalling robust investor confidence in the telecom giant.

Stay tuned to the Cedi Board® for real-time updates on Ghana’s financial pulse. From prices and policy to investment tips that help you make sense of the numbers.