President-elect John Dramani Mahama has made it clear that reviving Ghana's economy will be his administration's primary focus when he takes office. In a recent interview with Voice of America, Mahama emphasized the significant impact of the economy on various sectors, including education, agriculture, and sports. He acknowledged that Ghana's economic challenges influenced the decision of its citizens during the December general election.
Mahama identified two major issues that need to be addressed: macroeconomic stability and debt sustainability. He plans to review the ongoing IMF program, which he believes will require some adjustments to ensure that his administration is on the same page as the IMF. However, he clarified that his administration does not intend to abandon the program, but rather tweak it to suit their needs.
The president-elect outlined his plan to address economic challenges, prioritizing the reduction of inflation, stabilization of the currency, deficit reduction, expenditure cuts, and revenue increases. He also emphasized the importance of implementing his proposed 24-hour economy policy to improve productivity.
Mahama's focus on economic revival is crucial, given Ghana's current economic situation. The country's debt crisis, which began in 2022, has led to a significant increase in external debt and interest payments, surpassing government revenues. The total public debt reached 92% of GDP at the end of 2022, far higher than the average among Sub-Saharan African countries.
To address these challenges, Mahama's administration will need to implement radical reforms, including increasing transparency in key sectors such as gold, oil, and cocoa. Ghana's export structure is dominated by these three commodities, and the country needs to develop efficient production and move up the value chain to attract financing and investment.
Mahama's experience as a former president of Ghana, serving from 2012 to 2017, will likely inform his approach to addressing the country's economic challenges. His administration's success will depend on their ability to implement effective reforms, stabilize the economy, and improve productivity.
As Mahama prepares to take office on January 7, 2025, Ghanaians will be watching closely to see how he will address the country's economic challenges. With his focus on economic revival and his commitment to implementing reforms, Mahama's administration has the potential to make a significant positive impact on Ghana's economy.
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