President Akufo-Addo and former President John Mahama
Mahama speaks on the current state of Ghana’s economy
Mahama accuses Akufo-Addo's govt of running down the economy
NDC ready to aid in efforts to salvage Ghana’s economy, Mahama
Former President John Dramani says Ghana’s economy has taken a catastrophic nose-dive under the current leadership of President Nana Addo Dankwa Akufo-Addo.
According to
Read full articleMr Mahama, his administration before leaving office ensured the stability of the Ghanaian economy by laying a strong foundation which led the World Bank to forecast Ghana’s economic growth at positive between 2017 and 2020.
The former president in a statement released on Monday, February 7, 2022, however, noted that the gains by his government have all been eroded under the current leadership.
He attributed the situation to profligacy of the current government and reckless election-related spending in 2020.
“But for the profligacy and also the reckless election related expenditure in 2020, which undermined all the progress that had been made, our economy would not have taken the catastrophic nose-dive it has taken and left us all reeling under hardship,” Mr Mahama said.
In support of his argument of mismanagement against the current administration, Mr Mahama said despite receiving and having access to funds of over Gh¢33 billion, the Akufo-Addo led government failed to effectively utilize the money by misapplying same.
“The Akufo-Addo administration in 2020/21 received and misapplied the largest windfall or bailout in Ghana's history: a $1 billion concessional facility from the IMF, another $1 billion in SDR allocation, $430 million from the World Bank, $250 million from the Stabilization Fund, Gh¢10 billion from the Central Bank. This amounted to a total of about Gh¢33 billion,” he said.
Roping in efforts by the government to mobilise revenue through the passage of a 1.5% levy on electronic transactions, Mr Mahama described the controversial E-Levy as pitiful.
“It is a pity that today, the NPP's entire economic plan hinges on the passage of an E-levy expected to raise a little over Gh¢6 billion. How did we arrive here?” he questioned.
In an advice to the current government on the economy, Mr Mahama said the government must swallow its pride and take measures to salvage what is left of the Ghanaian economy which he says has been plunged into crisis.
“The government must swallow what is left of its pride and create a platform for urgent and constructive dialogue among stakeholders with the view to fashioning out a robust set of policy responses to the economic challenges before we get to the point of no return,” he added.
Read the full statement by former President John Dramani Mahama below:
Time is ticking for the crisis-ridden Ghanaian economy
By John Dramani Mahama
There is no dispute that the Ghanaian economy is in deep crisis, a crisis marked by huge budget deficits, an unsustainable public debt, rising inflation, a rapidly depreciating currency, ever rising cost of living and a loss of confidence by both domestic and international investor communities.
The effects of these have been severe hardships and suffering for the people of Ghana, especially those within vulnerable groups. As a result of the horrendous low point we have now reached, it is very clear that urgent intervention is required to avert a total collapse of the economy.
Yet, President Nana Akufo-Addo and his Head of the Economic Management Team, rather appallingly, remain nonchalant in the face of this serious crisis and have limited their response to the imposition of very harsh and regressive tax measures, one of which is the E-Levy, which has been roundly rejected by the people of Ghana.
Like one drowning and yet clutching at mere straw to stay afloat, this government has banked all its hopes on the E-Levy, which, given the gravity and depth of the problems that have beset our economy, is neither adequate nor viable as a sustainable response to the crisis.
In the face of this serious crisis, government has also resorted to unhelpful political posturing over suggestions on how to stem the downward spiral, ensure discipline and help the economy to recover.
It is painfully obvious that beyond the ill-conceived E- Levy, the Akufo-Addo administration has no viable or credible plan of action to get us out of the current economic doldrums into which they have plunged us; meanwhile, there can be collective buy-ins from the Ghanaian people, development partners and the investor community that are being ignored.
How come we do not have a much needed Post-COVID-19 Economic Recovery Plan that would lay down a firm blueprint for fiscal consolidation in the face of a worsening economic situation?
As I have indicated previously, the government must as a matter of urgency, borrow a leaf from our sound approach toward the challenges we faced in 2015. We immediately convened the Senchi Economic Forum at which we tapped the brains and expertise of a wide variety of knowledgeable people and stakeholders and built a consensus on our economic plan going forward.
The knowledge shared at Senchi crystallized into our Homegrown Fiscal Consolidation Programme, which we eventually presented to the IMF for support. The IMF agreed entirely with our homegrown strategy whose implementation restored stability to the economy and laid the strong foundations that this government, just as the World Bank in 2016 forecasted, profited from between 2017 and 2020.
But for the profligacy and also the reckless election-related expenditure in 2020, which undermined all the progress that had been made, our economy would not have taken the catastrophic nose-dive it has taken and left us all reeling under hardship.
The Akufo-Addo administration in 2020/21 received and misapplied the largest windfall or bailout in Ghana's history: a $1 billion concessional facility from the IMF, another $1 billion in SDR allocation, $430 million from the World Bank, $250 million from the Stabilization Fund, Gh¢10 billion from the Central Bank. This amounted to a total of about Gh¢33 billion.
It is a pity that today, the NPP's entire economic plan hinges on the passage of an E-levy expected to raise a little over Gh¢6 billion. How did we arrive here?
The government must swallow what is left of its pride and create a platform for urgent and constructive dialogue among stakeholders with the view to fashioning out a robust set of policy responses to the economic challenges before we get to the point of no return.
We in the NDC stand prepared to aid in the salvage effort because inaction is not an option in the face of disaster. The clock is ticking very fast and the time to act is now.
Cantonments- Accra.
Monday, February 07, 2022.
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