By Korsi DZOKOTO
As Ghana prepares for the 2024 elections, the contrasting economic landscapes of the past and present reveal a stark difference in governance. The National Democratic Congress (NDC), under the leadership of John Dramani Mahama, left the New Patriotic Party (NPP) with a nation on a path toward economic transformation and sustainable development.
Mahama’s tenure culminated in a series of prudent investments and policies that laid a strong foundation for Ghana’s future, only for these achievements to be squandered through mismanagement and corruption under the current administration.
Let’s examine the legacy Mahama left behind and how proper management could have transformed the lives of Ghanaians—if only the NPP had stayed the course.
A sustainable economy on the path to growth
At the end of 2016, Mahama’s administration handed over a sound economy with manageable debt levels and stable macroeconomic indicators. With a debt-to-GDP ratio of 55.6% and a budget deficit of 6.1%, Ghana’s fiscal situation was stable. Inflation had been brought down to approximately 15%, and the currency was depreciating at a rate of just 9%—a manageable level compared to the volatile depreciation under the NPP.
Most notably, Mahama’s government left behind an economy projected to grow by over 8% in 2017, according to both the International Monetary Fund (IMF) and the Economic Intelligence Unit. This was driven by strong growth in sectors such as industry and manufacturing, which expanded by 4.3% and 7.9%, respectively. The construction sector was also booming, growing at 8.4%.
Unfortunately, these hard-earned gains were rapidly undone by reckless borrowing, fiscal indiscipline, and corruption under the current government. Instead of leveraging this momentum for sustainable development, the NPP plunged the country into unsustainable debt levels and an economic crisis that has eroded the quality of life for many Ghanaians.
If the NPP had capitalized on the economic legacy Mahama left behind, Ghana could have experienced further job creation, increased investor confidence, and robust industrial growth. Instead, we are now grappling with high unemployment, unsustainable debt levels, and rising poverty/cost of living crisis.
Significant investments in the oil and gas sector
The NDC government under Mahama made strategic investments in Ghana’s oil and gas sector, bringing two additional oil fields—TEN and Sankofa—online to increase national oil production and revenue. These fields were expected to significantly boost Ghana’s oil output, providing a stable source of revenue for national development. The long-term benefits of this investment were clear: a more diversified economy, improved energy security, and a stronger fiscal position.
However, under the NPP, these opportunities were mismanaged. Despite the increased oil production, mismanagement of oil revenues, lack of investment in local capacity, and allegations of corruption in the energy sector have prevented Ghanaians from fully benefiting from the nation’s natural resources.
If these oil revenues had been properly managed, they could have been channelled into sectors like education, healthcare, and infrastructure, creating jobs, alleviating poverty, and ensuring that Ghanaians reap the rewards of their country’s natural wealth. Instead, Ghana’s oil wealth has been poorly allocated, with many of its people still waiting for the benefits they were promised.
Strategic institutional and cash buffers for economic stability
To ensure Ghana’s long-term financial stability, Mahama’s administration created strategic financial buffers such as the Ghana Infrastructure Investment Fund (GIIF), which had accrued $270 million, a Sinking Fund with $500 million, and a Stabilization Fund with $300 million. These funds were designed to provide a cushion during economic downturns, reduce the country’s dependence on external borrowing, and fund critical infrastructure projects.
However, under the NPP government, these financial reserves were quickly depleted. The NPP’s reckless borrowing, coupled with poor fiscal management, has left the nation without the financial safety net Mahama had carefully built. Had these buffers been preserved, Ghana could have weathered the current economic storm more effectively, with resources available for emergency spending and economic stabilization.
The result? Ghanaians have had to endure austerity measures, high taxes, and reduced government spending on critical social services, all while the country’s debt burden continues to spiral out of control. The depletion of these strategic reserves represents a missed opportunity to stabilize the economy and safeguard the well-being of the nation.
Infrastructural Investments: A Solid Foundation for Future Development
One of the most visible legacies of the Mahama administration is the vast infrastructure projects that were completed across the country. These projects not only created jobs and stimulated the local economy but also laid the groundwork for future development. Some of the key projects included:
- University of Ghana Medical Centre, a world-class quaternary hospital, and the only one of its kind in West Africa.
- The Greater Accra Regional Hospital at Ridge, a 420-bed ultramodern medical facility.
- Tema Port Expansion, making Tema Harbour the largest port in the sub-region, and the expansion of Takoradi Port, creating over 5,000 direct jobs.
- Kotoka International Airport’s Terminal 3, turning the airport into a regional aviation hub.
- Ho Airport and the redevelopment of Kumasi and Tamale Airports into international facilities.
These investments represented a bold and forward-thinking approach to developing Ghana’s infrastructure, improving health outcomes, boosting trade, and enhancing the country’s global competitiveness.
If the NPP had managed the economy effectively, the benefits of these projects would have been fully realized, with increased foreign direct investment (FDI), improved healthcare access, and expanded trade routes leading to job creation and enhanced economic growth.
Instead, under the current government, these projects have either stalled or have not been properly leveraged to their full potential. Mismanagement, corruption, and a lack of coherent policy direction have hampered the ability of these infrastructure investments to drive the development and transformation that Mahama had envisioned. Poor planning and execution have left Ghana lagging behind in key sectors such as healthcare and trade, despite the groundwork having already been laid by the previous administration.
Education and social welfare
John Mahama’s administration also made significant strides in education and social welfare. Under his leadership, the shift system in public basic schools was eliminated, and over 2,000 schools under trees were replaced with modern facilities. The construction of 124 Community Day Senior High Schools, of which 46 were operationalized and 27 completed, addressed the need for increased access to secondary education in underserved areas.
These investments in education infrastructure were complemented by social programs such as the distribution of free uniforms, exercise books, sandals, sanitary pads, and laptops for teachers, contributing to improved learning conditions and outcomes.
The achievements in education were further highlighted by Ghana’s all-time best BECE performance in 2015 and the country being awarded the best-performing WASSCE nation for four consecutive years. These results reflect the importance of Mahama’s commitment to improving educational standards and access, which directly impacted the lives of thousands of students and their families.
Unfortunately, since 2017, the focus on education infrastructure has been inconsistent, with many projects abandoned or delayed. The social interventions that supported students from disadvantaged backgrounds have not been sufficiently expanded, leaving many young Ghanaians without the resources they need to succeed.
Conclusion
The economic mismanagement and corruption under the NPP government have not only undermined Mahama’s legacy but have also left Ghanaians facing economic hardship and uncertainty. The sound economic foundation and strategic investments left behind by Mahama were squandered, and Ghanaians are now paying the price through high inflation, rising unemployment, and an increased cost of living.
If Mahama’s policies had been properly sustained, Ghana would be reaping the benefits of a thriving economy, improved infrastructure, and better living conditions for all. The upcoming elections present an opportunity to restore responsible governance and put Ghana back on the path to economic transformation and prosperity.
John Mahama’s proven track record offers hope for a brighter, more stable future—one that the NPP government, through mismanagement and corruption, failed to deliver.
