Paragraph 1: A Promising Start Amidst Challenges
President John Dramani Mahama’s return to office in Ghana on January 7, 2025, marked the commencement of a new chapter in the nation’s political and economic landscape. He presented a comprehensive 11-page social contract outlining 26 specific promises to be fulfilled within his first 120 days. This ambitious agenda unfolded against a backdrop of significant economic challenges. Ghana was grappling with the implementation of a US$3 billion loan program with the International Monetary Fund (IMF), designed to address macroeconomic instability and mounting debt. Further complicating matters, the United States Agency for International Development (USAID) withdrew its support, leaving a US$156 million funding gap, and the US government imposed a 10% tariff on Ghanaian goods. Despite these hurdles, Professor John Gatsi, a prominent finance expert, described President Mahama’s initial performance as "remarkable," signaling a positive trajectory for the nation’s economic recovery.
Paragraph 2: A Multi-Faceted Approach to Economic Recovery
Professor Gatsi highlighted the Mahama administration’s commitment to a broad-based approach to economic restoration and growth. The government’s strategy encompassed various key areas, including good governance, youth empowerment, economic entrepreneurship and business development, institutional reforms, and constitutional reform. This multifaceted approach signified a dedication to tackling the nation’s challenges holistically, rather than focusing on isolated issues. The Professor commended the government’s measured approach to expenditure and its emphasis on value for money, crucial steps towards creating a stable macroeconomic environment conducive to business growth and development. This fiscal prudence aimed to lay a solid foundation for sustainable economic progress in the long term.
Paragraph 3: Targeted Initiatives and Early Successes
One notable initiative launched during this period was the Ghana Medical Trust Fund (Mahama Cares), aimed at addressing critical healthcare needs within the country. Professor Gatsi viewed this as a significant step towards improving the well-being of Ghanaian citizens. He attributed the President’s experience in governance as a key factor in his strong performance during these initial months. Furthermore, the government’s efforts to stabilize the Ghanaian cedi against major trading currencies like the US dollar, British pound, and euro garnered praise from the Ghana Union of Traders’ Associations (GUTA). This stabilization provided much-needed relief to businesses, allowing them to recover some of the capital lost due to previous currency depreciation and exchange rate pressures. These early successes underscored the administration’s commitment to its social contract and fostered confidence in its ability to deliver on its promises.
Paragraph 4: Maintaining Momentum and Ensuring Long-Term Stability
Professor Gatsi urged the government to maintain the momentum of its initial successes and ensure the full implementation of its initiatives across multiple sectors of Ghanaian society. He emphasized the importance of sustaining a stable economic environment to reap multiple benefits, including a resilient and robust economy, lower inflation, a stable energy generation environment, and lower interest rates to stimulate business development. He expressed confidence that adhering to this "standard" would translate into tangible benefits for citizens, such as export growth, skills development for young people, and improved governance through enhanced transparency and accountability. This sustained effort would be crucial for building a strong and prosperous future for Ghana.
Paragraph 5: The Path to Economic Recovery and Future Growth
The actions taken by the government during its first 120 days laid the groundwork for a more comprehensive economic agenda moving forward. The stabilization of the cedi, according to GUTA, not only brought respite to the business community but also instilled confidence in the economy. If sustained, these prudent measures promised to pave the way for full economic recovery, enhance business competitiveness, increase productivity, and address the high cost of living. GUTA’s endorsement further validated the government’s initial economic strategies and reinforced the importance of maintaining these policies for long-term economic stability.
Paragraph 6: A Renewed Social Contract and the Promise of Progress
President Mahama’s return to power represented a renewed commitment to the people of Ghana. His social contract, with its 26 specific promises, served as a roadmap for the nation’s progress. The initial 120 days, while marked by external challenges, showcased the administration’s commitment to fulfilling these promises. From stabilizing the currency to launching vital health initiatives, the government’s actions demonstrated a clear focus on addressing the nation’s most pressing needs. While long-term success hinged on sustained effort and continued adherence to sound economic policies, the initial period offered a promising glimpse into Ghana’s potential for economic recovery and future prosperity.
