Ghana’s economic conundrum: Can democracy deliver?
Since gaining independence in 1957, Ghana has navigated a turbulent path to its current democratic era.
The nation endured a series of military coups until 1992, when Jerry John Rawlings ushered in a democratic system that has positioned Ghana as a beacon of political stability in West Africa.
However, persistent economic challenges and social indiscipline have sparked debates about whether democracy, as practiced, truly serves Ghana ’s needs. Under President John Mahama ’s administration, which inherited an economy teetering on the brink of collapse, significant strides have been made, notably the appreciation of the cedi by over GHS 5 against the dollar.
Yet, the refusal of some traders and trotro drivers to lower prices despite reduced fuel costs, coupled with the ongoing menace of illegal mining (galamsey), raises critical questions: Is Ghana’s democracy delivering for its people, or does the nation require a hybrid governance model — blending democratic principles with stricter enforcement —to address greed, indiscipline, and economic hardship?
When President John Mahama assumed office in January 2025, Ghana ’s economy was in dire straits, rated at junk status with a cedi that had lost significant value against the dollar.
Through concerted efforts by President John Mahama, his finance minister, and the Bank of Ghana’s governor, the cedi has appreciated remarkably, gaining over GHS 5 against the dollar in just five months.
This achievement, attributed to effective leadership and fiscal discipline, has also led to a reduction in fuel prices, offering relief to an economy battered by high inflation and public debt.
The Ghana Private Road Transport Union (GPRTU), following negotiations with the government, announced a 15% reduction in lorry fares, effective May 24, 2025, in response to lower fuel prices driven by the cedi’s gains.
President Mahama has publicly commended the GPRTU and other businesses that have adjusted prices downward, urging others to follow suit to ease the financial burden on Ghanaians.
However, resistance from some trotro drivers, who cite high spare parts costs and unchanged sales targets from vehicle owners, has hindered the full realization of these economic benefits.
Similarly, traders at markets like Makola, Abossey Okai have been slow to reduce prices, arguing that the cedi’s appreciation is not yet stable. These actions have fueled public frustration, with many Ghanaians labeling such behavior as greedy and exploitative.
Beyond economic concerns, illegal mining, or galamsey, remains a significant challenge. Despite government efforts to curb this environmentally destructive practice, perpetrators often return to mining sites, polluting rivers, destroying farmlands and forest reserves.
The persistence of galamsey underscores a broader issue of indiscipline, where individuals prioritize personal gain over the collective good. This has led to calls for stronger enforcement, including the deployment of the military to protect natural resources and ensure compliance.
Ghana’s democratic system, enshrined in the 1992 Constitution, guarantees universal suffrage, free elections, and robust political participation. The country’s record of peaceful power transitions and high electoral turnout—60% in the 2024 presidential election—testifies to its democratic credentials.
Yet, the failure of democracy to fully address economic exploitation and social indiscipline has led some to question its efficacy. The refusal of trotro drivers and traders to pass on the benefits of cedi appreciation, coupled with the galamsey crisis, suggests a need for stronger mechanisms to enforce accountability. Comparisons with Rwanda, often cited for its rapid development under a tightly controlled governance model, highlight an alternative approach. Rwanda’s system, which blends elements of authoritarianism with development-focused policies, has delivered impressive economic growth and social order. However, it comes at the cost of limited political freedoms and human rights concerns. Ghana, with its vibrant democratic culture, faces a different reality: a society where individual freedoms are cherished, but where greed and indiscipline sometimes undermine collective progress.
The question of whether Ghana should adopt a hybrid governance model—combining democratic principles with military-style enforcement — requires careful consideration. The suggestion to deploy the military for price control or to combat galamsey reflects frustration with the slow pace of change under democracy. Military intervention could, in theory, deter exploitative practices and enforce compliance.
For instance, forcing traders to lower prices or evicting galamsey operators from mining sites could stabilize costs and protect the environment. However, such measures risk undermining the democratic freedoms that Ghanaians have fought for, potentially alienating citizens and inviting accusations of authoritarianism. Rwanda’s model, while effective in delivering
development, sacrifices pluralism and dissent, which are integral to Ghana ’s identity.
A hybrid approach for Ghana could instead focus on strengthening democratic institutions while introducing targeted enforcement mechanisms. For example, the government could empower regulatory bodies like the Public Utilities Regulatory Commission (PURC) to enforce price controls more effectively, with police support to ensure compliance. Similarly, a specialized task force, rather than the military, could address galamsey, combining law enforcement with community engagement to deter illegal mining without resorting to heavy-handed tactics.
The notion that Ghanaians require force to “do the right thing” reflects a deeper cultural challenge.
While democracy empowers citizens, it also demands responsibility. Public campaigns to educate traders and drivers about the economic benefits of price reductions could foster voluntary compliance.
Social media sentiments, as seen in posts on Facebook, TikTok and X, reveal public anger at profiteering traders, suggesting a demand for accountability. Civil society and media can amplify these voices, pressuring businesses to align with national interests.
Rather than abandoning democracy, Ghana should refine it to address its unique challenges.
President Mahama’s administration has shown commitment to fiscal discipline and anti-corruption measures, as evidenced by his engagement with the Ghana Catholic Bishops Conference on issues like galamsey and governance reforms. To make democracy work, the government must strengthen institutions to regulate markets and curb exploitative pricing, with clear penalties for non-compliance, while deploying specialized task forces to combat illegal mining, coupled with alternative livelihood programs to deter recidivism. Public campaigns should encourage traders, drivers, and citizens to prioritize collective welfare over personal gain, while sustaining fiscal discipline and transparency to maintain cedi stability and reduce reliance on imports.
Ghana ’ s democratic journey since 1992 is a testament to its resilience, but the challenges of economic exploitation and indiscipline demand a tailored approach. While Rwanda’s model offers lessons in discipline and development, Ghana’s vibrant democracy is a strength that should not be sacrificed.
Instead of military rule, the nation needs stronger institutions, targeted enforcement, and a cultural shift toward collective responsibility. President Mahama ’s economic gains provide a foundation to build upon, but the government must act decisively to ensure that the benefits of cedi appreciation and fuel price reductions reach ordinary Ghanaians. By addressing greed, galamsey, and governance gaps, Ghana can prove that democracy, when refined to suit its context, is not just
deserved but essential for its progress.
Writer's email: Gilbertattipoe90@gmail.com
