Ghana’s Mahama: Navigating Economic Challenges and Democratic Legacy

This week the good people of Ghana will continue adjusting to last weekend news of the return of John, not The Baptist, but Dramani Mahama, to the presidential villa. While this is understandably good news for his supporters, those that lined up behind incumbent Vice President Mahamudu Bawumia, his opponent, are left to nurse their wounds. But did this come entirely as a surprise to them? It probably didn’t. I will tell you why in a moment. It certainly didn’t matter to objective watchers like me with no horse in this race except a desire to see the consolidation of democracy in a prominent West African nation. This is at a time when things are falling apart in the region and dominant regional players like Nigeria are struggling to hold the centre together.

Call it the day after. We can then begin to ask how this victory came about given that the same issues that led Ghanaians to sack Mahama in 2016 are same for renewing their faiths in him eight years later. So, where was Ghana then economically and politically? Where are they now; what has changed?

Let us begin with the present. As of election day in 2024, Ghana’s consumer inflation rose to 23.0% year-on-year, up from 22.1% in October. This marks the third consecutive monthly increase, primarily driven by higher food prices. The market women of Makola, central Accra felt this especially in the prices of vegetables, yam, cassava, and plantains. However, the second quarter of 2024 saw Ghana’s economy grow by 6.9% year-on-year, the fastest rate since the Nana Akufo-Addo presidency. This growth was propelled by strong performances in the mining and quarrying sectors, with the gold sector expanding by 23.6%. The country equally restructured $13 billion in U.S. dollar bonds, effectively exiting a nearly two-year debt default. This restructuring reduced the nation’s debt by over $4 billion. This brings with it the prospect of positioning Ghana for a return to global capital markets.

While the nation’s debt was reduced, it could safely be said that the elections were held amid significant economic challenges. The high inflation linked to debt defaults were skilfully made electioneering issues. This leads one to ask if Ghanaians are quick to forget that in 2015,  Mahama’s government equally sought a $918 million bailout from the International Monetary Fund (IMF) to stabilize the economy and address high debt levels.

Ghanaians may not be quick to forget. It might simply be that Mahama was a better political communicator with better packaged messaging than Bawumia and his New Patriotic Party. He may have been better at bringing on  issues that influenced voter sentiment at a time when many are seeking change due to rising living costs. Mahama dipped into his accomplishments as President from 2012 to 2017. He successfully emphasized his infrastructure development that focused on roads, schools, hospitals, and energy projects. He reminded voters of initiatives like the Atuabo Gas Processing Plant and expansion of ports and airports which modernised Ghana’s economy.

Tried as he could, Bawumia was unable to successfully shine the light on the energy crisis that enveloped Ghana under Mahama’s watch. Ghana faced a severe power crisis, the so-called Dumsor with frequent outages crippling businesses and causing pains to households.

On his part Mahama got the focus to rest on the efforts his administration invested in  to achieve energy mix. This includes thermal and renewable energy plants, to address the power crisis. His campaign was good at deploying contrast communication strategy. For instance while admitting that the economy was hard hit with declining prices of gold, cocoa, and oil, his team was quick to point to the fact that the fault lay with decline in global commodity prices and had nothing to do with  government policy or lack of it. To rub it in, they then end the messaging with a pointer to the early years of his administration when oil production boosted GDP.

Mahama drew attention to how he oversaw a relatively peaceful political environment and upheld Ghana’s democratic tradition. Despite mostly unfair criticisms, he told voters that he ensured free and fair elections in 2016, where he conceded defeat to Nana Akufo-Addo, solidifying Ghana’s reputation for political stability. He could not be blamed for exercising his bragging rights around investments in education including the Community Day Senior High School project, which improved access to secondary education; expansion of the National Health Insurance Scheme; and increased access to healthcare facilities.

While he can’t match the records of incumbent President in shuttle diplomacy, Mahama did not shy away from highlighting his key role in regional diplomacy, including efforts to mediate political crises in neighboring countries like Burkina Faso.

As the dust settles, the Bawumia team will be assessing their communication failure in not leveraging on some of the major scandals that docked Mahama. How on earth were they unable to convince voters that they can’t trust a guy involved in a contract to brand public buses with photos of Ghanaian presidents with a whopping $3.6 million. What about the GYEEDA Affair? The Ghana Youth Employment and Entrepreneurial Development Agency (GYEEDA) was implicated in the misappropriation of funds meant for youth employment programs. Yet the youths of Ghana were allowed by Bawumia to trust their faiths in the man’s hands! Again? How on earth did the Bawumia campaign miss the opportunity to paint all of the country black with the ghost of the SADA Controversy? The Savannah Accelerated Development Authority (SADA), established to develop Ghana’s northern regions, faced allegations of mismanagement and corruption involving millions of cedis. And then comes the Ford Expedition Gift Imbroglio! Mahama was accused of accepting a Ford Expedition vehicle from a Burkinabe contractor who had won lucrative government contracts, raising concerns about conflict of interest and ethical breaches.

From all indications, it appears the people of Ghana are fine to forgive economic mismanagement and persistent allegations of corruption preferring instead to settle for a legacy of focus on infrastructure development and commitment to democracy. His manifesto, Mahama’s First 120 Days Social Contract with the People of Ghana, was a fine read. The next four years will prove whether the people’s gamble with Mahama will pay off.

For the renewed presidency of John Dramani Mahama, which by the way, reminds us of the return of Donald Trump of the United States, the challenges facing him are humongous. But he has the parliamentary majority needed to push through his agenda. His legacy will be anchored on a number of policy areas of which analysts are now on the look out to asses his soon to be appointed cabinet. His appointments will give a window to his succes or failure in areas crucial in addressing Ghana’s current challenges while building on lessons from his previous tenure.

On debt management, who will be his point person in building on Ghana’s recent debt restructuring success by adopting prudent fiscal policies to prevent further accumulation of unsustainable debt? Mahama needs to improve revenue collection through tax reforms and combating tax evasion. Are there lessons that he’d pick from the tax reforms components of Tinubunomics? In controlling inflation, Africa will be on the look out for Mahama to deliver a template on successful measures to address rising inflation, particularly in food prices, by supporting local production and reducing dependency on imports.

If his Minister for Employment has no track records of expertise in youth employment through aggressive skills development programmes and projects and incentivizing private sector growth, particularly in industries like technology and manufacturing, he has beautifully set himself up to fail. Of course Mahama must do everything he can to rid himself of the ghosts of GYEEDA by not bringing close to him, anybody that resembles the crooks that misappropriated funds meant to give young people career prospects a decade ago

If you are no proponent of Economic Diversification, Mahama should not have you on the shortlist for consideration either as trade or economic portfolio. Ghana should have reduced yesterday its undue reliance on commodities like gold, cocoa, and oil. But if by tomorrow, Mahama pays more attention to investing in agriculture, renewable energy, and digital technology, Ghana will not easily forget his second coming.

It is expected that the President-elect will defend his credentials for infrastructure through his policy around sustainable energy solutions. Under him Ghana must expand its renewable energy capacity, through solar and wind to reduce dependency on fossil fuels and prevent future power crises and by so doing wave a final goodbye to the ghosts of Dumsor. While on it, he must strengthen public-private partnerships for energy infrastructure investments. In choosing his international partners for energy, he must keep away from Western leaders who’d preach to him the gospel according to jettisoning oil to embrace exclusively clean energy despite oil still supporting a significant chunk of the economy of Ghana. Amongst the friends he made while serving as a member of European and Pan African Parliaments’ Ad hoc Committee on Cooperation, he must know who to run away from and who to embrace as international partners willing and able to respects Ghana’s sovereignty and facilitate the provision of targeted subsidies to ensure affordable electricity for low-income households while promoting efficient energy use.

If his job description for Minister for Transport does not include proveable experience and expertise in managing investment in road and rail networks, he must withdraw and edit it. It is the imperative of Ghana’s time in history to enhance connectivity between rural and urban areas, promoting trade and economic activity. He must expand and modernize ports and airports to make Ghana a regional logistics hub. He did it before. He must do it again in his second coming.

A President Mahama must prioritise building on existing healthcare infrastructure by improving access to quality care, particularly in underserved rural areas. He must strengthen public health initiatives to address ongoing issues like malaria and rising non-communicable diseases. Strengthening of the National Health Insurance Scheme (NHIS) to ensure universal coverage and address challenges like delays in claims payments should be a priority..

Building on his efforts up to 2016 and whatever accomplishments of his predecessor, President Mahama must accelerate efforts to make senior high school universally accessible and improve technical and vocational training to align with market needs.

The promise of constituting the leanest and most efficient government in the fourth Republic of Ghana is easy to say because lean government is the new trend. So, this President can’t listen to anyone who tells him to create more ministerial portfolios. He however must give consideration to refocusing existing portfolios and perhaps rename or merge some ministeries. For instance it might serve Ghana well to have a ministry for institutional reforms and digitisation into which ministeries with overlapping portfolios could be collapsed. Such a ministry could be tasked with strengthening  anti-corruption institutions like the Office of the Special Prosecutor and the Auditor-General’s office. It must facilitate policies around transparent procurement processes and punish financial mismanagement to rebuild public trust. His Year One accomplishment must include Public Sector Efficiency. This is as urgent as it is. Ghana should urgently show other African  countries how to reduce bureaucratic inefficiencies and streamline service delivery to make government programmes and projects more effective. While at it, it must foster greater civic engagement with the civil society to ensure inclusivity in decision-making and policy implementation.

As of today Ghana ranks 133 out of 191 countries and maintains the same human development index (HDI) value for 2020 and 2021 with 0.632. This puts the country in the medium human development category, according to UNDP report. Between 1990 and 2021, Ghana’s Human Development Index (HDI) value grew from 0.460 to 0.632, reflecting an increase of 37.4%. However, though Ghana falls in the medium human development category, when considered for unequal distribution of human development, the country records a loss of 27.5 per cent in its HDI. For instance, Ghana’s level of gender inequality remains high over the years and ranked 130 out of 170 countries in 2021 in terms of gender inequality between female and male achievements. President Mahama has every reason to take Social Protection and Welfare seriously. He must make work out of poverty alleviation, expand social protection programmes to cushion the impact of rising living costs on vulnerable populations. Genuine focus should go to food security by supporting smallholder farmers with subsidies, access to credit, and modern farming techniques. Affordable housing in urban centres has remained a challenge. There can’t be a better time than now to partner with private developers to create affordable housing units to address the housing deficit.

Not unimportant is how President John Mahama will perform in the international stage with special reference to Regional Leadership and Foreign Policy. The principles enshrined in Ghana’s 1992 Constitution, particularly Article 40, which underscores the promotion and protection of the nation’s interests, respect for international law, and adherence to the principles of organisations such as the United Nations and the African Union, have continued to guide the country at the international stage. Over the years, the foreign policy has evolved to adapt to changing international dynamics. It is the hope that Mahama will remain consistent in the area of economic diplomacy and will leverage Ghana’s strategic position in West Africa to attract foreign direct investment and promote trade through agreements like the African Continental Free Trade Area (AfCFTA). Doing this will not preclude him from continuing to play a mediating role in regional conflicts to ensure peace and stability in the sub-region.

In conclusion, the 2024 elections that returned John Dramani Mahama as President underscores Ghana’s resolve to give him a shot at navigating the country’s economic recovery while upholding its democratic traditions. That he received as high as 56.55% mandate by Ghanaians indicates the readiness of the people to give him another chance. He can’t take this for granted by assuming that he has completely been forgiven his sins of old. He needs to rebuild trust amongs Ghanaians. As independent onlooker but one with a vested interest in the Pan-African agenda, I urge Mr President to place accountability and legacy building high on his agenda. It is not enough to state in his contract with the people of Ghana that he’d establish a robust code of conduct and standards for all government officials. The people of Ghana ade more interested in his clear mechanisms to address scandals and allegations of corruption from the past to rebuild credibility. Resting on this, he has no option but to focus on completing unfinished projects from his previous tenure, particularly in infrastructure and energy, to strengthen his governance legacy. By focusing on these recommended imperatives of the time, Mahama can address Ghana’s current challenges while leveraging his experience in rebuilding trust among Ghanaians and Africans.

The author, Collins Nweke is opinion-maker writer with The Brussels Times. A Fellow of both the Chartered Institute of Public Management of Nigeria and the Institute of Management Consultantshe serves on the Governing Board of the International Association of Research Scholars & Administrators, where he is also a Fellow. He features on several Afrocentric media as Global Affairs Analyst. A Green Party Municipal Legislator in the legislature 2006 – 2025, he writes from Brussels, Belgium.

Postcard from Brussels on President Buhari U.S. State Visit

Belgium became my adopted home over 20 years ago. Since the last 9 years when I went into party politics, I have maintained a routine of coming together with friends, Africans and Europeans, on the eve of the National Day, which is 21 July, for a drink and a chat. This routine has slowly graduated to a tradition. I’d normally use the occasion to feel the political pulse of friends and take home some useful hints. How we are faring in the local legislature was always the overarching questions for me as we converge? However the drink and chat this year was different for two reasons. One, our drink was preceded by what the organizers called ‘Wake-Keeping for Greece’. I was invited as Municipal Legislator to deliver a short speech at the gathering meant to show solidarity for Greece on its current economic tribulations. Two, ninety per cent of our conversation centered, not on Belgian national issues, but curiously on Nigeria, my country of birth. In specific terms we talked about ongoing State Visit of President Muhammadu Buhari to the United States, the same topic that had engaged me and a think-tank of Nigerians over the social media in the last week heightening a few hours before our drinks commenced.

I thought it meant sense to send this postcard to Mr President and people of Nigeria to summarize the preoccupations of people out here about Nigeria. Nearly 48 hours into what is meant to be a 96 hour official visit by President Muhammadu Buhari, there has not been visible international media coverage of a trip sold to Nigerians as ‘historic’. It should have been historic because it is Mr President’s first major state visit since assuming office about 2 months ago. My folks here seem to believe that the visit is indeed historic but for the wrong reasons. A European student of contemporary African history and an avid watcher of Nigeria said he couldn’t immediately recall any previous first State Visit in recent history that appears to lack this much vision and focus. I was at a lost for a response when asked what the strategic intent of the visit was. What is historic about this State Visit?

I attempted a response based on available media briefing from Mr President’s team and indeed in line with popular and reasonable expectations. The economy was meant as one of the major focus of this state visit. Indeed President Buhari is also expected to make public addresses at the U.S. Chamber of Commerce in Washington DC and at the Corporate Council on Africa to discuss international investment and Nigeria’s economy. The question that begs answer is how many members of the robust Nigerian Chambers of Commerce are in the delegation? Which business leaders of note are in the Presidential delegation? One is keen to know if Mr President shares the view that the most critical aspect of Nigeria’s economic concerns at present is economic diversification, away from the monolithic oil revenue. Which experts in economic diversification theory and professionals are in the delegation?

On the political side of things, we were told by the media team of Mr President that U.S. Secretary of State, John Kerry, and the U.S. Congressional Committees on Foreign Relations will also receive President Buhari to discuss political ties between the United States and Nigeria. The Congressional Black Caucus in the U.S. House of Representatives will meet with members of Nigeria’s delegation as well. One astute Buhari supporter who jokingly said during the election campaign that Nigerians must vote anybody but Goodluck Jonathan felt strongly that it is only normal that for Nigeria to derive the best return on investment for this trip, members of Nigerian Legislature should have been part of the delegation even if there is a face-off between them and Mr President. If I ever get to see Mr President, he told me, I would probably ask him to consider sharing with me the rationale behind the exclusion of National Assembly (NASS) members in his delegation to the U.S. When asked, I had nothing to say except to deny that the President’s actions could have been dictated by bad blood between him, Senate President, House Speaker and other Legislators because of the way they ganged up against his party’s choices for the top positions in the NASS. Mr President, please tell me that I am right!

Closely related is the concern that any deal reached by Mr President with both President Obama and the Congressional leadership would have to be ratified by the same Nigerian Legislators that have been excluded. Characteristic of these Belgian friends out here, is how they can put you on the spot with very uncomfortable questions. And directly too! This one got me struggling: could it be that considering the majority lead of the ruling All Progressives Congress (APC) in the upper and lower Houses, an easy ratification by the NASS of any agreement reached by Mr President during this visit with U.S. Congress may be expected? If so, shouldn’t we be concerned that our Legislators would be ratifying an Agreement on a position of weakness and lack of knowledge? How good is this in developing the legislative capacity of Nigerian Legislators? These guys could be polite as well because I believe the question they are not asking, out of politeness, I think is: for how long will Nigeria put up with Legislators who have no clue of what is going on at the floor of their legislative Chambers?

Getting mildly irritated, I told my pals that I am conscious of the fact that this administration came into power on a promise of change. And for heaven’s sake, they have been in power for just 2 months and it’s unfair to expect magic as of yet. In a somber tone, the otherwise loud chap behind me in the bar, bent over, his neck slightly bent and almost whispering reminded me that Prime Minister Alexis Tsipras of Greece took only a week or so to constitute his cabinet. That aside, he asked if I was willing to swear on the head of my first son (he understood the place of first sons in my culture) that the few appointments so far made and the composition of the delegation to the U.S. were based on meritocracy? Do you now support political patronage, against the gospel you preach to us in the City Council because it’s about Nigeria, he asked, a bit agitated. I retorted that a selection based on who represents a better comparative advantage for the nation is my preference and I have no evidence that the President has done things differently here.

I send this postcard conscious of the fact that Mr President has information that I am not privy to, which may have dictated his plans and actions but I felt a sense of responsibility, maybe obligation, to convey these raw thoughts considering that I am unable to reconcile a few available and obvious facts with the principles of good governance and strategic planning. It should be noted that friends of Nigeria, but particularly its critiques need to gain deeper understanding of the rationale behind the policy path Nigeria chooses to walk so that proffering constructive solutions for the plethora of issues retarding Nigeria’s national growth, could be made easier.

Brussels, Belgium 22 July 2015

 

Collins Nweke is Municipal Legislator at Ostend City Council Belgium and former Chairman of Nigerians in Diaspora Europe