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Home Featured

Ghana’s president John Mahama faces tough start as economic crisis drives people to leave

GhanaPoliticsOnline.com by GhanaPoliticsOnline.com
December 30, 2024
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John Mahama has been Ghana’s main opposition figure for several years, having previously served as president from July 2012 to January 2017. He failed in his bid to be re-elected in 2016’s elections, and then again in 2020.

But while his party and supporters are rejoicing his win in December, the challenges he is facing are considerable – with rising poverty and a new study finding six out of 10 Ghanaians wish to emigrate, chiefly in search of better job opportunities.

Economic and energy challenges

Ghana is in the midst of an economic crisis. The country remains the world’s number two cocoa producer, but there is turmoil in the industry as well as in gold.

“The economic situation is dire, and I’m going to put my soul, physique and everything into it and focus on making lives better for Ghanaians,” said Mahama, after his National Democratic Congress party’s comfortable win in the election held on 7 December.

He said the “multiplicity of taxes” agreed to as part of the country’s International Monetary Fund (IMF) programme had made Ghana “unpleasant for business”.

He also believes the IMF did not put enough pressure on the previous government to cut wasteful spending, and has promised a review aimed at reducing spending, including by the president’s office.

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“If the president is asking us to tighten our belts, he must also tighten his,” he said.

Mahama also promised to find sustainable solutions to Ghana’s energy problems, to avoid the regular power outages the country suffers.

“We’re going to face quite a critical situation in the energy sector,” Mahama said.

“The electricity company of Ghana is the ‘sick man’ of the whole value chain and we need to quickly fix it.”

‘A change of government is not enough’

Ghanaians facing these economic challenges are increasingly looking to emigration as a solution.

The number of people wishing to leave the country has gone up more than 20 percentage points in seven years, according to a new study by Afrobarometer Ghana.

This trend is explained by the country’s growing economic difficulties, said David Kofi Asante-Darko, an analyst at Afrobarometer Ghana and the West Africa Democracy Solidarity Network (WADEMOS).

“Ghana is in default on its debt for the first time,” he told RFI.

“We have had to face a severe debt restructuring programme. This has had negative consequences, not just on the economy but more generally on people’s opportunities.”

This is a significant trend, and according to Asante-Darko the arrival of a new president is unlikely to change things.

Highly educated and young people and the unemployed are the most likely to consider emigration, with North America the most popular destination, followed by Europe.

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“These problems are endemic here: corruption, nepotism and, more generally, poor governance. A change of government is therefore not enough. What is needed is a complete revision of our country’s democratic structure, regardless of the political party in power,” Asante-Darko said.

Voter turnout in the 2024 elections was 60 percent, nearly 20 percentage points lower than in the 2020 elections.

Fighting corruption

During his campaign, Mahama  said unchecked procurement processes are a major source of corruption in the country. He vowed to make fighting this and reclaiming misappropriated state funds a key pillar of his mandate, and last week appointed an anti-corruption task force.

The five-member group will strive to recover all public funds embezzled in recent years and the proceeds of corruption in the West African country.

These officials will “hold persons responsible for such corruption accountable”, said Felix Kwakye Ofosu, spokesperson for Mahama’s transition team.

The working group is made up of lawmaker Samuel Okudzeto Ablakwa, former Auditor General Daniel Domelevo, retired police chief Nathaniel Kofi Boakye, legal expert Martin Kpebu and investigative journalist Raymond Archer, Mahama’s team said.

Emmanuel Wilson Junior, a lawyer with the organisation Crusaders Against Corruption, hailed the initiative and urged the incoming administration to act swiftly.

“This is a step in the right direction. Ghanaians are tired of corruption being swept under the carpet. We expect this team to be proactive and ensure real accountability,” Wilson told the AFP news agency.

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The announcement comes amid mounting public frustration over corruption scandals under outgoing President Nana Akufo-Addo, including the $190 million Power Distribution Services deal, which critics described as financially questionable.

Several civil society groups and opposition supporters protested outside the finance ministry, accusing the government of “gross financial mismanagement”.

Corruption allegations also plagued Mahama’s previous tenure as president, although no charges were formally filed against him.

(with newswires)

 

 

 

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