President John Dramani Mahama has begun his term with a resolute focus on reviving the economy, boosting business growth and implementing governance and constitutional reforms.
In his inaugural address on January 7, 2025, President Mahama declared economic recovery and macroeconomic stability as the top priorities for his administration, articulating the importance of stabilising the economy and fostering a business-friendly environment to promote sustainable growth.
Outlining his vision to position the country as a leading investment destination, the President highlighted plans to attract local and international investors through targeted reforms. He also committed to overhauling the tax system, making it more transparent and equitable to stimulate innovation and entrepreneurship.
President Mahama further placed significant emphasis on accountability, vowing to tackle corruption head-on, assuring the citizenry of his commitment to constitutional changes that reflect the aspirations of the people as well as political and administrative systems that enhance efficiency and inclusivity.
“I intend to speak plainly and clearly to you today and every time I address you subsequently. I intend to always tell you the truth. The circumstances we find ourselves in are indeed dire. But even so, I will be decisive and swift in my actions.
“We will focus our initial efforts on four critical areas. It is economic restoration and stabilisation of the macroeconomic environment. The second is the improvement of the business and investment environment to ensure that Ghana is once again open for business.
“The third is governance and constitutional reforms. And the final, but not the least, is accountability and the fight against corruption. Actions have always spoken louder than words. With you, the good people of Ghana, I have enumerated 26 actions that I will take within my first 120 days. There is every reason for hope – we must have faith. We need a reset with the faith we have in our institutions. We need a reset with our faith in our dear nation, Ghana,” he reaffirmed.
President Mahama called on all Ghanaians to contribute to the nation’s transformation, adding: “This journey belongs to all of us”.
Highlighting innovation as a key driver, Mr. Mahama outlined plans for a vibrant 24-hour economy anchored on agriculture and technology. “Imagine a Ghana bustling at all hours, with responsive public services and opportunities for all,” he envisioned.
Debt, energy top key concerns
President Mahama’s government faces significant challenges in stabilising Ghana’s economy, grappling with rising debt, inflation and energy sector issues. With GH¢30billion (US$2billion) in debt servicing obligations over the next four years, Mahama has committed to taking decisive action to restore fiscal balance.
The government is also locked out of capital markets, making debt refinancing difficult. Amid soaring inflation, Mahama plans to renegotiate Ghana’s agreement with the IMF to secure more favourable terms, as the current programme’s strict spending conditions have been seen as limiting economic growth and social initiatives.
Energy sector challenges
One of the immediate challenges facing President Mahama’s administration is resolving Ghana’s US$1.5billion debt to independent power producers (IPPs). Analysts warn that failure to address this issue could result in plant shutdowns and a return of the ‘Dumsor’ power outages that disrupted the country a decade ago.
President Mahama has acknowledged the energy sector’s critical role in the nation’s economic recovery, emphasising the need for collaboration with IPPs to find a sustainable solution while ensuring a reliable power supply. Experts suggest that a comprehensive strategy, including sustainable payment schedules and increased investment in renewable energy, could help stabilise the sector.
Lean government
President Mahama has pledged to run a lean government as part of his strategy to restore investor confidence and ensure fiscal prudence. This aligns with calls from economic experts for reduced government expenditure to allocate more resources to critical sectors like health, education and infrastructure, which are crucial for attracting both foreign and domestic investments.
With the country excluded from global capital markets, the government is relying heavily on domestic revenue mobilisation, Treasury bills, taxes and concessional loans to finance its budget.
Global shifts
He emphasised the necessity of undertaking a “reset” of the nation’s economic and political systems, drawing attention to the shifting dynamics on the global stage.
Mahama highlighted the decline of the G7 nations’ dominance and the rise of the BRICS countries in global economic influence.
He emphasised that Ghana must position itself to take advantage of these global shifts, ensuring its place in the evolving geopolitical landscape.
“In 2023, for instance, the G7’s combined total of world GDP was 30 percent. But by 2029, that number is predicted to drop to 27 percent. In 2023, the BRICS percentage of world GDP was 37.3 percent. So what does this mean to us in Ghana? What could it mean to our economy? Where do we fit in this geopolitical maelstrom? ” he states.
Regional growth
President Mahama emphasised the importance of strengthening ties with neighbouring countries, highlighting shared cultural and familial bonds that should be leveraged to ensure regional stability, safety and progress.
He also acknowledged the growing challenges posed by climate change, pandemics and global security threats, vowing to improve Ghana’s preparedness for future crises, particularly in public health.
“The next pandemic must find us ready, minimising the loss of lives in Ghana,” he stated.
Expressing gratitude for the trust placed in him, he called on all Ghanaians to unite in restoring hope and prosperity to the nation.
Solidarity
In a display of regional solidarity, President Bola Tinubu of Nigeria has offered unwavering support to Ghana during his recent diplomatic visit to Accra, underscoring the strategic importance of bilateral relations between the two West African nations.
During his address to assembled dignitaries, diplomats and citizens at President Mahama’s inauguration in Accra, Tinubu emphasised the significance of peaceful dialogue and cooperation between the two nations that share deep historical and economic ties.
“Even when we disagree, we must choose the path of peaceful dialogue. Your new President is a man of patriotic vision and substance; he loves his nation and people to the core. Mahama and I share a deep friendship,” Tinubu stated during the ceremony.
The Nigerian leader’s presence at the event signals a continued commitment to strengthening regional partnerships, particularly as both nations face similar economic challenges and development objectives.
Tinubu’s pledge of support was unequivocal: “My dear brother, I am here to work with you. You can always count on Nigeria’s support at any given time you call on me. We will work together to bring prosperity to the people of our two nations”.
The visit comes at a crucial time for both countries, as they navigate complex economic reforms and seek to boost intra-African trade. Nigeria – as Africa’s largest economy – and Ghana, a significant regional player, have historically maintained strong diplomatic and economic ties despite occasional tensions over trade policies and treatment of migrant businesses.
Tinubu’s speech notably drew on pan-African themes, employing Ghana’s iconic “Black Star” symbol to emphasise continental unity. “The sun is out, and the sun may be blue, but I see today a black star rising high in the African sky. This black star shines over this nation, and its ray spreads across the continent with a sense of shared history, hope, compassion, unity and devotion to our common welfare,” he remarked.
The Nigerian President positioned himself not merely as a head of state, but as a representative of broader African interests. “Today, I am here not only as the President of the Federal Republic of Nigeria, but also as an African in resolute support of Ghana and her people. This moment is a source of pride and honour for Ghanaians, the entire continent and its diaspora.”
The visit highlights the ongoing importance of diplomatic relations between the two countries, which have remained resilient despite various challenges in recent years. Analysts suggest this renewed commitment to cooperation could herald increased economic collaboration between the two nations, particularly in areas of trade, security and infrastructure development.
