Accra, Ghana//-Ghana’s former President and Flagbearer of the National Democratic Congress (NDC), John Dramani Mahama says corruption has become a new normal under the current Akufo-Addo-Bawumia-led government.
Ghanaians have become numb to the growing scandals that continue to be exposed daily, he told over 500 CEOs, entrepreneurs, captains of industry, and policymakers, among others at the eighth edition of Ghana CEO Summit in Accra.
Due to bad leadership, corruption, and bad governance, he said several companies including GAME, Glovo, Nivea, BIC Pen, Dark and Lovely have all shut down.
Unilever has relocated its tea production to Nigeria, Mr Mahama added.
Bankrupt and collapsed
“Today, we stand at a critical and troubling crossroads. Our beloved country has become a bankrupt and collapsed economy due to the poor leadership of almost eight years.
This leadership has failed Ghanaians and yet refuses to accept or even take responsibility for the most reckless management of our economy in known history”.
This has plunged our nation into an unprecedented economic crisis and pushed more than eight hundred thousand (800,000) Ghanaians below the poverty line, he said.
Unemployment
“Unemployment has jumped to 14.7% from 8.5% in 2017, the highest level recorded in the history of the 4th Republic; inflation is above 25%, and the current interest rates range between 30% and 50%.
The exchange rate, which was previously at 4.00 Ghana Cedis to the US dollar, has crossed the 15 Ghana Cedi threshold, and there appears to be no end in sight to the deterioration of the cedi. Despite this, the government remains unconcerned and unwilling to cut expenditures”.
It continues to spend more on creature comforts instead of investing in the transformational infrastructure that will propel this nation forward.
“Amid all this, our public debt has now hit a staggering 658.6 billion Ghana Cedis. But we cannot despair over the poor quality of governance that has served us in the last seven and a half years”.
The former president therefore appealed to the CEOs, captains of industry and the investor community, to tarry a bit more.
“Please don’t leave our country”, Mr Mahama further appealed.
“The beauty of our democracy is that it allows us to change our current trajectory.
What will he do when his new NDC administration comes to power?
You can rest assured that a new NDC administration will work with you to create a conducive environment for businesses to thrive”.
Macro-economic stability
The number one priority according to him would be stabilising the economy and restoring a stable currency by launching an urgent economic recovery and fiscal consolidation plan.
This Mr Mahama believes would done after a national economic dialogue to be held within one hundred days of assumption of office in 2025.
“We will do this by pruning the huge government expenditures, preventing waste and corruption, and boosting revenues by expanding the tax net. We will simplify the VAT and streamline its collection”.
He also used the occasion to reiterate his commitment to abolishing the obnoxious e-levy introduced by the current government.
In his words: “We will abolish the e-levy and some taxes that have become a burden on businesses and households”.
Mr Mahama added that his government would not burden the businesses with “endless tax audits and harass you with Economic and Organised Crime Office (EOCO)”.
Big on digitalisation
Unlike the current government, he promised that he would continue digitalising the country’s revenue collection and payment systems for the socio-economic growth and development of the country.
“By 2028, we aim to phase out cash as a form of payment for all government services. We will also entrench the use of point-of-sale (POS) devices in transactions to make tax and levies collection more transparent”.
Mr Mahama lamented Ghana’s economy has long relied on a few key sectors, such as gold, cocoa, and, more recently, oil, which they call the Guggisberg economy.
“Unfortunately, under this government, even cocoa, which at the end of my term in office brought in almost $2 billion in loan syndication, could barely manage $800 million last year”.
Oil volumes are down; these have been eight wasted years in the upstream petroleum sector with no significant development in our oil prospects.
Restore cocoa production
The next NDC government he said would work urgently to restore the country’s cocoa production to improve forex flow into the economy, accelerate drilling and production of oil and gas in offshore and onshore concessions, and increase the availability of natural gas for electricity production and LPG for domestic use.
Streamline mineral production
“We will also streamline our mineral production and exports to achieve the full benefit of this endowment. While these traditional sectors are essential, we must expand and invest in new areas offering opportunities for sustainable growth”.
These include agriculture, agri-business, tourism, light industries, manufacturing, and the creative industries.
Diversifying our economic base can lead to more job opportunities, poverty reduction, and a more robust economy, especially within the context of the ‘Mahama 24-hour economy’.
This diversification is crucial for a country with a growing youth population, as it absorbs more labour and helps reduce unemployment and underemployment rates. Agriculture and agro-processing will receive priority attention.
Farmers’ service centres
“Our farmers’ service centres, which will be managed by well-trained private sector players on the franchise, will bring agricultural mechanisation services to farmers’ doorsteps.
Farmers registered with these centres will receive improved seeds, fertilisers, mechanisation services, and extension advice for their farming activities”.
Working with the country’s multilateral partners and the Ghana Exim Bank, the new government shall set up special agro-industrial processing zones in the 16 regions to add value to the crops for which they have a comparative advantage, Mr Mahama told the business community.
“We will give incentives to agro-processing giants to backwards integrate their industries into the national agricultural value chain and eventually phase out the import of strategic products they currently import as raw materials.
Fintechs working in the agricultural and agribusiness space will be used as conduits for providing targeted micro-credit for farmers”.
Mr Mahama further assured that his government would also revive Dr Ndoum’s concept of micro GN banks to boost the rural economy.
Your theme- ‘Reigning Business and Economic Growth: Charting a Path Forward; Economic Diversification and Artificial Intelligence Transformation’ underscores the urgency and importance of charting a strategic path forward, he stated.
Economic diversification is imperative for reducing dependence on traditional industries and building resilience against external shocks.
