1. Introduction: The opposition New Patriotic Party (NPP) in Ghana delivered a "True State of the Nation Address" in response to President Mahama’s address. The NPP criticized the President’s address as propaganda and offered an alternative perspective on the nation’s economic performance, highlighting the progress made during their tenure.
2. Economic Performance Assessment: The NPP countered President Mahama’s critique of their economic management, arguing that the 23.8% inflation rate, while above the IMF target, represented a significant reduction from the 54% peak in 2022. They emphasized the positive trajectory of disinflation and pointed out other indicators of economic strength, such as robust real GDP growth exceeding IMF projections, a trade balance surplus, a current account surplus, and record-high international reserves. The NPP argued that their management, despite facing unprecedented global crises, had delivered a strong economy compared to the previous Mahama administration’s performance.
3. Context of Inflation and Exchange Rates: The NPP attributed the rise in inflation to global factors like the COVID-19 pandemic and the Russia-Ukraine war, which disrupted supply chains and fueled inflation worldwide. They highlighted their previous success in managing inflation before these crises, bringing it down to single digits. The NPP acknowledged the high inflation rate but stressed their efforts to reduce it from its peak and the muted pass-through effect on inflation due to a lower exchange rate depreciation. They also credited the Akufo-Addo government’s accumulation of international reserves for the current exchange rate stability.
4. Financial Buffers and Sector Performance: The NPP clarified the existence of multiple financial buffers beyond the Sinking Fund, including IMF disbursements and Treasury accounts, which were used to meet expenditure and debt obligations. They also refuted claims of a struggling financial sector, citing data showing significant growth in total assets, deposits, and liquidity, as well as improved profitability ratios for banks. They argued that the financial sector cleanup, while controversial, had ultimately strengthened the industry.
5. Debt Management and Energy Sector: The NPP detailed their efforts to manage the nation’s debt, including successfully rescheduling debt service to official bilateral creditors, achieving debt cancellation and relief from Eurobond holders, and reducing debt levels as a percentage of GDP. They critiqued President Mahama for taking credit for the debt rescheduling agreement, emphasizing that the heavy lifting had been done by the NPP. They also addressed the energy sector challenges, citing a $2.8 billion debt service relief, and a $4 billion debt cancellation. They explained that increased energy sector debt had been a consequence of take-or-pay contracts signed during the previous Mahama administration but the NPP administration successfully prevented that sector from collapsing.
6. Infrastructure, Other Sectors, and Conclusion: The NPP listed their infrastructure achievements, including progress on stalled housing projects, delivery of homes to security services, and establishment of a National Homeownership fund. They also criticized the current government’s plan to abandon the Agenda 111 hospital projects. The NPP defended its record on road construction, highlighting significant improvements in road conditions and rural accessibility. They enumerated educational reforms implemented during their term, including curriculum overhauls, promotion of STEM education, and significant investment in TVET. They also challenged claims of a politicized judiciary, asserting that judicial appointments followed constitutional processes, and questioned President Mahama’s commitment to judicial independence. The NPP expressed concern over rising insecurity and violence following the elections, citing specific incidents and urging the President to take decisive action. Finally, they pledged to hold the government accountable and resist any attempt to increase taxes. They stressed the need for a truthful narrative about the state of the nation to restore investor confidence and build upon the economic gains they achieved during their tenure.
