Mr Akufo-Addo, a 72-year-old former human rights lawyer, promised free high school education and more factories. But critics have questioned the viability of his ambitions.
Mr Akufo-Addo's inauguration represents the latest peaceful handover of power in Ghana.
Taking the oath of office in the capital's Independence Square on Saturday, he promised to "protect and defend" Ghana's constitution.
He said he would reduce taxes to boost the economy, adding that Ghana was now "opened for business again".
See photos from the ceremony below...