Rebuilding Trust: Mahama’s roadmap for economic recovery, combatting corruption

The recent electoral triumph of President-elect John Mahama and the National Democratic Congress (NDC) marks a significant shift in Ghana’s political landscape. This landslide victory has caught both the NDC and the New Patriotic Party (NPP) by surprise, particularly due to the unexpected margin of seats gained/lost in Parliament and the substantial vote difference in the presidential race against Vice-President Dr Mahamudu Bawumia.

Analysts attribute Mahama’s win to widespread public dissatisfaction rooted in economic hardship and perceived governmental corruption. Many Ghanaians voiced their frustrations by casting their votes against the ruling NPP, driven by anger over the nation’s recent economic struggles. Government officials have attributed this economic decline to factors, including the lingering effects of the COVID-19 pandemic and global geopolitical tensions, such as the Russia-Ukraine and Israel-Hamas conflicts.

However, this explanation has not been accepted by many Ghanaians. 

Conditions 

The currency crisis exacerbated these issues, with the Ghanaian Cedi experiencing sharp depreciation. For instance, the exchange rate with the US dollar soared from approximately GH¢ 6.15 in January 2022 to over GH¢ 16.00 by December 2024.

This volatility has severely impacted the cost of living, especially for families. Ghana’s over-reliance on imported staple foods, which account for over 50 per cent of consumption, despite Ghana’s arable land potential, has exacerbated the problem. In spite of the worsened exchange rates, salaries virtually remained the same. As a result, many families are struggling to afford basic necessities, reflecting a growing sense of hunger and economic distress.

This context created fertile ground for the NDC’s campaign, as voters sought a change in leadership to alleviate their current hardships.

Moreover, the NPP’s perceived failures in combating corruption significantly influenced voter sentiment. During Nana Akufo-Addo’s presidency, the perception of corruption became especially pronounced, leading many Ghanaians to view the administration as incompetent.

The Finance Minister’s reluctance to resign and the President’s failure to fire him, despite increasing calls for accountability from within the party, further damaged the NPP’s credibility.

Public dissatisfaction was further heightened by environmental concerns related to illegal mining activities (galamsey), which have led to devastating effects on water bodies and public health, implicating some government and ruling officials in these operations.

The low voter turnout of approximately 61 per cent, which the NPP attributed to their supporters’ apathy, indicates a disillusionment within the party’s base, suggesting that many chose to express their dissatisfaction by abstaining from the elections.

Restoring public trust

Given the impact of hunger and anger on the 2024 electoral outcome, stemming from perceptions of corruption and ongoing economic hardships, the incoming government must prioritise the urgent addressing of these economic challenges and corruption.

As the NDC prepares to take power, it will be critical for them to tackle these pressing issues and work towards restoring public trust.

To secure widespread support and foster a new era of stability and prosperity, the government must commit to mitigating the effects of corruption while improving living standards for all Ghanaians. One promising initiative is the establishment of an Anti-Corruption Team by President-elect John Dramani Mahama, which is a positive step forward.

The formation of the Operation Recover All Loot (ORAL) team, which includes notable figures such as former Auditor-General Daniel Domelevo, signals the incoming government’s firm stance against corruption. It is also reassuring that the President-elect has clarified that the ORAL initiative is not aimed at ‘witch-hunting’. For it to be truly effective, however, their efforts should extend beyond the tenure of Nana Akufo-Addo, encompassing previous administrations and the new government’s own activities.

To facilitate this, the government should work with the judiciary to establish Special Courts specifically designed to handle corruption cases.

This would not only accelerate prosecutions but also ensure that justice is delivered promptly. Such swift action will be crucial in restoring faith in public institutions.

Fiscal reforms

Addressing Ghana’s economic challenges is equally paramount. The new government should implement robust fiscal governance and undertake comprehensive fiscal reforms aimed at resuscitating the economy.

Innovative financing models, such as infrastructure bonds, public-private partnerships and diaspora bonds, could be invaluable in bridging the funding gap for essential projects.

Additionally, the government should enhance revenue mobilisation strategies while also reconsidering the reintroduction of certain taxes that the NDC pledged to abolish during the election campaign.

To achieve sustainable growth, it would be wise to implement expenditure-cutting strategies, including a move towards a leaner government structure with fewer than 60 ministerial appointments envisioned by Mahama.

Moreover, the government should explore intelligent ways to implement the 24-Hour Economy policy, which can significantly optimise energy use, reduce operational inefficiencies and drive long-term development.

In conclusion, the path ahead for the incoming government is fraught with challenges but also full of opportunities.

By taking decisive action against corruption and focusing on sound economic policies, they can pave the way for a brighter future for all Ghanaians.

The writer is a political scientist.