Tackling challenges

By Dela AGBO

As President John Dramani Mahama embarks on his final term after an eight-year hiatus, Ghana stands at a critical juncture.

The nation faces pressing economic and social challenges that require immediate and strategic action to restore investor confidence, stabilise the economy, and uplift the lives of citizens.

This moment presents an opportunity for the Mahama administration to deliver impactful policies that will define its legacy and propel Ghana towards sustainable growth.

The current landscape

Slowed growth, mounting debt, and inflationary pressures characterize Ghana’s economy. Investor confidence, both domestic and international, has wavered due to fiscal mismanagement, currency depreciation, and inconsistent policies in recent years.

Meanwhile, unemployment remains high, especially among the youth, and critical infrastructure deficits continue to hinder productivity.

Blueprint for action

• Economic stabilization and growth
  • Debt restructuring: The administration must prioritize renegotiating debt terms to alleviate fiscal pressure. A transparent debt management strategy will be crucial to restoring confidence among creditors and investors.
  • Inflation control: Strengthen monetary policy in collaboration with the Bank of Ghana to stabilize the cedi and control inflation, ensuring that essential goods remain affordable.
  • Revenue mobilisation: Enhance tax collection systems and expand the tax base by formalizing the informal sector, while providing incentives for compliance by actually paying for tax refund to both individuals and institutions.
• Enhancing investor confidence
  • Policy consistency: Investors need predictability. The government must ensure consistency in policies related to trade, taxation, and investment.
  • Ease of doing business: Streamline bureaucratic processes and reduce corruption to make Ghana an attractive destination for foreign direct investment (FDI).
  • Public-Private Partnerships (PPPs): Leverage PPPs to fund critical infrastructure projects, signaling a commitment to shared growth.
• Infrastructure development
  • Energy sector reform: Address inefficiencies in the energy sector by diversifying energy sources, improving grid reliability, and reducing production costs. Reliable energy is a cornerstone for industrial growth.
  • Road and transportation networks: Invest in road construction and maintenance to connect rural areas to urban markets, boosting agricultural productivity and trade.
  • Digital infrastructure: Expand broadband access and invest in digital technology to drive innovation and improve public service delivery.
• Youth empowerment and job creation
  • Skills development: Introduce vocational training programs aligned with market needs to equip the youth with employable skills.
  • Support for start-ups: Create a fund for young entrepreneurs, coupled with mentorship programs, to foster innovation and job creation.
  • Agribusiness expansion: Modernize agriculture through mechanization and value-chain development to make the sector attractive to the youth.
• Health and Education
  • Healthcare access: Prioritize universal healthcare access by improving facilities, ensuring consistent supply of medications, and training more health professionals.
  • Education reform: Focus on science, technology, engineering, and mathematics (STEM) education to prepare the workforce for the future economy.
• Good governance and accountability
  • Fight corruption: Establish robust mechanisms to detect, prevent, and prosecute corruption. Transparency will rebuild trust in government institutions.
  • Community engagement: Involve local communities in policy design and implementation to ensure grassroots support and relevance.
• Environmental sustainability
  • Climate adaptation: Develop policies to combat the effects of climate change, such as drought and flooding, which impact agriculture and infrastructure.
  • Sustainable mining practices: Ensure responsible extraction of natural resources to minimize environmental degradation and maximize national benefit.

The path forward

The Mahama administration has a unique opportunity to demonstrate visionary leadership and rebuild Ghana’s economic and social fabric. Bold reforms, coupled with transparency and inclusivity, will be pivotal in addressing the nation’s challenges. By fostering investor confidence, empowering the youth, and committing to sustainable development, this administration can leave a legacy of resilience and progress.

Ghanaians, and indeed the world, are watching. The steps taken now will shape the trajectory of the nation for years to come. It is time to seize the moment and deliver the Ghana that its people deserve.

Dela is the CEO, EcoCapital

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