After Landing Ghana in GHC721 Billion Debt Crises…
Party leaders Ducks Out of Economic Dialogue in a Hasty Retreat
The Accra International Conference Centre buzzed with activity as hundreds gathered for the highly-anticipated 2-day National Economic Dialogue aimed at tackling Ghana’s economic woes head-on.
Notably absent were members of the opposition New Patriotic Party (NPP), who opted to boycott the event as a show of defiance.
This move raised eyebrows as the NPP has a history of shying away from crucial national discussions, especially on economic matters.
The spotlight fell on Former President Nana Akufo-Addo and his Vice, Mamoud Bawumia, who have been laying low following their stinging defeat in the recent polls.
Themed: “Resetting Ghana: Building the Economy We Want Together.”, the dialogue was patronized by distinguished personalities from the private sector, academia, civil society organizations (CSOs), economic experts, economists, policymakers, industry leaders, chiefs, development partners, diplomatic among others.
The current Economic Dialogue, a brainchild of President Mahama, drew a diverse crowd ranging from private sector players to policy experts, all gathered under the theme “Resetting Ghana: Building the Economy We Want Together.”
Critics have pointed fingers at the NPP for contributing to Ghana’s economic downturn, with a hefty debt legacy left for the new administration to grapple with.
While some participants debated the merits of the dialogue, the NPP Minority group chose a different approach, opting for a press conference to air grievances and accuse the president of deflecting blame.
Meanwhile, Ghana’s economy situation over the period especially in the last eight years has struggled to make any positive impact on the ordinary Ghanaian.
Following it inability to pay both local and foreign debts, the previous government embarked on a painful Domestic Debt Exchange Programme (DDEP), spreading payments to 2025 and beyond.
Though fiercely resisted by investors and pensioners the NPP government went ahead with its head shaving program which further deepened burden on households, families and investors leading to loss of businesses and livelihoods.
With a total public debt of GH¢742 billion; 70.6% of GDP as at end of June 2024 from a previous GHc26, 438.77 as at May 2016, Ghana’s debts woes deepened as State enterprises such as the Electricity Company of Ghana (ECG, the Ghana Cocoa Board, the Roads Ministry, the National Health Insurance Authority (NHIA). Ghana Education Service (GES) and many others riddled with various debts.
For instance in the case of the debt in the energy sector including ECG the sector owes a total of GHc68 billion in debt. Independent Power Producers (IPP) who play a very pivotal role in the energy mix have been threatening to shut their machines due to unpaid debts by government.
The Energy Sector Levy Account (ESLA) which was put in place to cater for the debts in the sector by the previous Mahama government, even though accrued over 45 billion in funds in 8 years, it appears money was not used for the intended purpose.
Minister for Government Communications, Felix Kwakye Ofosu in a recent public outpour, intimate that the Mahama government inherited GHc32 billion COCOBD debt and a supply deficit of over 3300 metric tonnes of cocoa beans which money the Akufo Addo gov;t have received and squandered without supplying the product. The country is losing $840 million as a result of this single act of mismanagement, he reiterated
In the face of this glaring difficulties, former President Akufo-Addo in his last SoNA on January 3, 2025 said his administration was leaving behind a better economy.
Rather than admitting his failed legacy the former President blamed crises in the nation’s economic growth during his era on COVID-19 pandemic prescribed unpopular DDEP and (IMF) bailout as his solution for recovery.
With Ghana’s economy teetering on the edge, Finance Minister Dr. Cassiel Ato Baah Forson highlighted the precarious state of state-owned enterprises, painting a grim picture of financial instability across the board.
As the dialogue unfolded, President Mahama seized the moment to rally the nation towards economic revival, emphasizing the need for collective action to usher in a new era of prosperity.
He called on stakeholders to contribute their expertise and solutions to steer Ghana towards a brighter future. Despite the mounting challenges, Dr. Forson remained optimistic that prudent reforms and fiscal responsibility could set the stage for recovery and growth.
He stressed the importance of learning from past mistakes and implementing bold reforms to secure Ghana’s economic future.
Amidst the turmoil, Chairman of the National Economic Dialogue, Dr. Ishmael Yamson, singled out President Mahama as the beacon of hope for Ghana’s economic reset, lauding his leadership and vision to navigate the country towards sustainable growth.
As the dialogue progressed, the spotlight remained on Ghana’s economic landscape, with stakeholders urged to unite in a concerted effort to pave the way for a prosperous future.
Not so surprising, prominent NPP member and economist Kwame Pianim defied party lines by attending the dialogue solo, signaling a crack in party unity.
