By Samuel Lartey(Prof)
Elections in Ghana have always been a pivotal moment, offering a chance for the country to reset its priorities and chart a course for a brighter economic future. As the 2024 elections approach, Ghanaians are anticipating changes that could immediately influence their livelihoods.
With inflation still high at 22.1% (as of October 2024), public debt exceeding GH₵600 billion, and unemployment reaching an estimated 13.9%, the stakes are high. The question on everyone’s mind is simple yet profound: what can immediately change, improve, or increase after the elections to positively impact the nation’s economic destiny?
Immediate Changes After Elections 2024
- Policy Reorientation and Fiscal Discipline
A newly elected government could prioritise fiscal consolidation to stabilise the economy. With Ghana spending over 40% of its revenue on debt servicing in 2023, reducing wasteful expenditures, addressing corruption, and enhancing public sector efficiency will be crucial. For instance, the Auditor-General’s reports for 2023 highlighted GH₵17 billion in financial irregularities that, if recovered, could support critical sectors like education and healthcare.
- Energy Sector Reforms
A restructuring of Ghana’s energy sector, including promoting renewable energy like solar, could reduce the cost of electricity for households and businesses. The current average electricity tariff of GH₵1.20 per kWh is among the highest in West Africa, undermining industrial growth. Post-election policies could encourage local manufacturing of solar panels and provide subsidies to reduce energy costs, fostering job creation and boosting productivity.
- Agricultural and Industrial Support
The agricultural sector, contributing 19.1% to GDP, could see immediate attention through increased subsidies for fertilizers and mechanization. Similarly, implementing a revamped “One District, One Factory” initiative could generate more jobs and address the 32.8% youth unemployment rate.
Opportunities for Immediate Improvement
- Boosting Investor Confidence
A peaceful transition of power could restore investor confidence. In 2023, Ghana’s Foreign Direct Investment (FDI) inflows totaled $1.2 billion, down from $3 billion in 2018. Political stability post-elections, coupled with reforms, could attract more FDI, particularly in critical sectors like technology, agribusiness, and healthcare.
- Currency Stabilisation
The Ghana cedi depreciated by 38.5% against the US dollar in 2023, contributing to high import costs. A focus on strengthening domestic production and export diversification, particularly in non-traditional exports such as cocoa processing, shea butter, and cashew nuts, could stabilize the cedi and reduce inflationary pressures.
- Digital Economy Expansion
The digital economy could serve as a quick win for job creation and economic growth. Ghana’s mobile money transactions reached GH₵1.2 trillion in 2021, showcasing the potential of digital finance. Policies supporting startups, fintech companies, and digital infrastructure could provide immediate dividends.
Opportunities for Increased Growth
- Infrastructure Investments
Ghana requires $1.5 billion annually to close its infrastructure gap, according to the World Bank. Post-election investments in roads, railways, and water systems could stimulate economic activities and create jobs.
- Tax System Overhaul
Streamlining the tax system to broaden the tax net and reduce reliance on corporate and PAYE taxes could increase government revenue. Currently, only 2.5 million Ghanaians out of 33 million are registered taxpayers. Policies encouraging compliance and reducing the tax burden on small businesses could unlock significant revenue.
- Health and Education Improvements
Targeted investments in healthcare and education could enhance human capital. With only 3.6% of GDP spent on health and 4.4% on education in 2023, increasing these allocations could create a healthier and more skilled workforce, driving long-term economic growth.
Conclusion
As Ghana prepares for the 2024 elections, the nation stands at a crossroads. With the right policies, the next government could address longstanding economic challenges, stabilise the macroeconomic environment, and set the stage for sustainable growth.
Immediate changes such as energy sector reforms, fiscal discipline, and investment in agriculture could provide much-needed relief, while long-term strategies in education, healthcare, and infrastructure could transform Ghana’s economic destiny. For Ghanaians, the post-election period presents a critical opportunity to turn aspirations into reality and unlock the country’s immense potential.
