2024 Elections: A call to conscience

As we approach the 2024 elections, Ghana stands at a critical juncture. For nearly eight years, the New Patriotic Party (NPP) government has overseen policies that have eroded Ghana’s economic stability, corroded trust in governance, and destabilized countless lives.

The economy has been run aground, pristine rivers and forest destroyed, and education collapsed. The judiciary, security services, EC, and other government institutions have been politicized and bastardized to the extent that the public trust in these institutions have waned.

The Akufo-Addo/Bawumia administration has engaged in some of the crookest multi-million-dollar procurement scams of all time-SML, PDS, KelniGVG, 5G network license, Frontiers Health etc. The combination of rising national debt, currency depreciation, high inflation, high unemployment rate, oppressive tax burdens, a painful domestic debt restructuring, a vindictive local banks closure, and ongoing energy issues has left Ghanaians grappling with daily hardships. For any sane voter still considering endorsing the NPP, it’s time to reflect deeply on the harsh realities that millions are facing. A vote for the NPP in the 2024 elections means endorsing corruption, lies, bare-faced thievery, and economic mismanagement.

Inherited fortune from the NDC Government’s hard Work

The NPP assumed office amidst a wealth of resources and a robust foundation laid by the NDC government. With prudent investments in key sectors, from infrastructure to social welfare, the NDC government paved a path to economic resilience that could have propelled Ghana into a new era of growth. This’s evidence in the approximate sectorial growth rates for Ghana’s economy in 2017-Agriculture 8.4%, Industry 16.7%, Services 4.3%, and overall GDP Growth of 8.5%. Instead of building upon these gains for the common good, the NPP indulged in profligate spending and turned this inherited fortune into an opportunity for self-enrichment, sidelining the very people whose labor sustained these resources. Mismanagement, bare-faced thievery, and unchecked greed dismantled years of progress, leaving Ghanaians to bear the brunt of lost opportunities and a weakened economy. This squandered legacy stifled the potential of millions, as Ghana’s wealth is concentrated in the hands of a few instead of serving the collective.

Rising national debt and economic stagnation

From 2017 to the present, the NPP administration has borrowed excessively, increasing Ghana’s debt-to-GDP ratio to unprecedented heights. When the NPP took over the mantle of government in 2017, the total debt from Dr. Kwame Nkrumah to John Mahama stood at GHc122 billion but as of June 2024, it has ballooned to GHc742 billion with nothing to show for it. The continuous accumulation of debt and lack of investment in productive sectors has led to debt default for the first time in decades. The lack of economic growth alongside this borrowing has created an unsustainable fiscal situation, leaving future generations saddled with a debt they did not ask for.

Currency depreciation and high inflation rates

The cedi’s rapid depreciation under the NPP has brought far-reaching impacts, driving inflation to double-digit levels and raising the cost of basic goods and services. Imported goods, including essential items, have become prohibitively expensive, squeezing household budgets and leading to widespread hardship. With wages unable to keep up, families are forced to make impossible choices between necessities.

Persistent unemployment and high tax burdens

Unemployment remains one of the most glaring issues under the NPP, particularly for young people who struggle to find decent jobs. The lack of opportunity has driven many into the informal sector or to seek opportunities abroad. In response, the government has implemented various taxes, including the infamous E-Levy, further burdening already strained citizens. Rather than fostering a pro-business environment, these measures stifle entrepreneurship and innovation, throttling economic growth and deepening inequality.

Banking sector cleanup: A wound still fresh

The NPP’s attempt to restructure Ghana’s banking sector led to the collapse of several local banks and financial institutions. While the cleanup was positioned as a necessary step, its mismanagement left many jobless and eroded public trust in the financial system. The NPP government used it as a tool to collapse local indigenous banks that were deem to be aligned to opposition parties. Using 25 billion cedis to collapse banks that needed about nine billion to solve their liquidity problem is the highest form of incompetence by any stretch of imagination. Small businesses, which form the backbone of the economy, faced severe disruptions, compounding the economic strain felt across the nation.

Rising fuel and utility costs

High fuel prices and utility costs continue to hammer household budgets and inflate the costs of basic goods. These rising expenses have hit low- and middle-income households the hardest, increasing the financial instability of families already grappling with the challenges of currency depreciation and inflation.

Reduced investor confidence

Reduced investor confidence in Ghana reflects the damaging outcomes of the NPP's governance choices. Mismanagement, profligate spending, and policy inconsistency have eroded trust in Ghana’s economic stability, deterring both local and international investors. What was once a promising environment for investment has now become uncertain and unstable, stifling growth, hindering job creation, and diminishing Ghana's economic potential. The NPP's decisions have not only weakened Ghana's economy but have also created lasting repercussions, dampening investor optimism and casting doubt on the country’s financial future.

Forests and water bodies under threat

The NPP’s tenure has seen the rapid destruction of vital forests and water bodies through illegal mining and unchecked environmental exploitation. The consequences extend beyond economic impacts, threatening the health of communities and ecosystems across Ghana. Protecting these resources is critical for sustainable development and the well-being of future generations.

Corruption, Domestic Debt Exchange and Debt Default

Daily corruption scandals have further eroded the credibility of the NPP government. Efforts to address fiscal deficits through a domestic debt exchange have further hurt the ordinary Ghanaian, impacting retirement funds and the financial stability of citizens who had trusted in government bonds.

The NPP government’s debt default marks a pivotal moment in Ghana’s economic trajectory, with significant implications for future administrations, particularly following this year’s election. The default not only undermines investor confidence but also constrains fiscal options for the next government, which will inherit a weakened financial landscape marked by high debt servicing costs, limited access to affordable credit, and an urgent need for economic stabilization.

A post-default Ghana faces the challenge of restructuring relationships with both domestic and international creditors, a delicate task that will impact future government budgets. The looming obligation to prioritize debt repayment limits the funds available for critical sectors like healthcare, education, and infrastructure, thus stalling economic development. The default also heightens the pressure on future leaders to adopt stringent fiscal policies to regain credibility with investors and international financial bodies, such as the IMF and World Bank. For the incoming government, the path forward will demand innovative solutions that go beyond traditional approaches.

Sustainable economic reforms, enhanced transparency, and strengthened regulatory frameworks will be essential to restore investor trust and rebuild the economy. Ultimately, the NPP’s debt default serves as a cautionary reminder of the need for prudent fiscal management and a long-term vision that prioritizes national stability over short-term political gains.

A Call for accountability in the 2024 election

The challenges facing Ghana today-economic mismanagement, environmental degradation, and rising poverty-are not the results of global forces alone. Many of these issues stem from incompetence, short-sighted policies, and an apparent disregard for the long-term well-being of Ghanaians. As sane and conscientious citizens, we owe it to ourselves, our families, and our future to hold leaders accountable. To cast a vote for the NPP in 2024 is, in essence, to endorse the very policies that have led to widespread hardship. This election is not merely about political allegiances; it is a matter of economic survival and national integrity. If we, as a nation, do not demand change, we may find ourselves complicit in perpetuating the very issues we hope to overcome.