The National Democratic Congress’ Presidential Candidate, John Dramani Mahama has stated that Ghana’s economy has been grappling with numerous difficulties in recent years, which have had a detrimental impact on the nation’s economic growth and stability.
He pointed out that Ghana lacked the necessary resilience to weather the COVID-19 pandemic and other global crises, leaving the economy vulnerable and ultimately leading to a weakened economic state, which necessitated the implementation of the Domestic Debt Exchange Program (DDEP).
Furthermore, John Mahama attributed the need for the DDEP to the government’s prolonged period of excessive borrowing, which caused the country’s debt-to-GDP rate to become unsustainable, requiring intervention to stabilize the economy.
“And so we currently got into an IMF program to try to stabilize the economy and balance the micro economy. At the present moment, we finished a domestic debt restructuring, we are currently doing an international debt restructuring. Once that happens, the intention is that by 2028, it should bring down debt to GDP down to about 50%”.
John Dramani Mahama
Moreover, the former President expressed optimism that the ongoing debt restructuring efforts would pave the way for a more promising economic future for the country.
As such, John Mahama emphasized that with the right approaches and investments, the country can revitalize its economy and drive lasting progress and development.
Furthermore, John Dramani Mahama highlighted that Ghana’s economy is facing a perfect storm of challenges, including unsustainable debt levels, a substantial fiscal deficit, high inflation rates, and an excessive reliance on commodities, which jeopardize the country’s economic well-being.
He also conceded that the COVID-19 pandemic had laid bare the vulnerabilities in Ghana’s economic foundation, which were already present due to poor economic management prior to the pandemic.
“Government’s overspending, taking advantage of the pandemic resulted in worsening the situation. This was further amplified by reduced revenue“. – John Dramani Mahama
The NDC flagbearer pointed out that, as a middle-income nation, Ghana’s revenue should ideally range between 18% and 22% of its GDP, but currently stands at around 14%, necessitating additional taxation measures under the ongoing IMF program to bridge the revenue gap and boost government income.
Diversify To Revitalize: Mahama’s Economic Plan
According to John Dramani Mahama, to revitalize the economy, the government must prioritize economic diversification and foster growth in non-traditional sectors, reducing dependence on traditional industries and promoting a more resilient and dynamic economy.
“We rely mainly on some traditional sectors like cocoa. Ghana is the second largest producer of cocoa in the world, and Ghana is currently the largest exporter of gold in Africa. We therefore are vulnerable to shocks anytime there are collapses of global commodity prices”.
John Dramani Mahama
Furthermore, the former President stressed the importance of developing critical infrastructure, including power generation, transportation systems, and telecommunications, to provide a robust backbone for economic growth and enable the country to reach its full potential.
Accordingly, he emphasized that Ghana must also prioritize strengthening its governance framework, tackling corruption, streamlining bureaucracy, and enhancing efficiency to create a conducive business environment, foster investor confidence, and attract foreign investment.
“We must cut red tape and bureaucracy in order to advance in the ease of doing business.”. – John Dramani Mahama
Moreover, the former President stressed that Ghana needs to revamp its human capital development strategy, focusing on education, healthcare, and skills training, to build a workforce that is agile, innovative, and capable of driving economic growth and competitiveness in a rapidly changing world.
“The thing about education is that, like Canada, we were colonized by Britain and so we inherited the British system of grammar school education and not emphasizing much technical and vocational skills… What we are trying to do now is to rebalance our educational system by incorporating a high dose of skills and vocational education”.
John Dramani Mahama
He further emphasized that Ghana must prioritize the development of its agricultural sector, focusing on boosting productivity, enhancing value addition, and promoting agribusiness, to ensure food security, increase exports, and drive economic growth
John Dramani Mahama also pointed out that Ghana offers numerous investment opportunities, particularly in the energy and power sector, where independent power producers can invest without limits, unlocking immense potential for growth and development.
The former President made these remarks at the International Business Forum organized by the Canada-Ghana Chamber of Commerce.
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