Mahama sounds alarm: Economy needs radical overhaul

President John Dramani Mahama has issued a clarion call for a radical transformation of the economy, emphasising the need for collective action to address the country's deep-seated economic challenges. 

Delivering the keynote address at the National Economic Dialogue (NED) in Accra yesterday, President Mahama painted a grim picture of the current economic situation, and pointed out the devastating impact of years of “financial mismanagement, irresponsible borrowing and reckless spending”.

"We refuse to accept this as Ghana's reality. We reject the notion that economic hardship must be our norm. We refuse to surrender to the forces of stagnation and decline," President Mahama said.

Dialogue

The National Economic Dialogue, which has brought together some of the most experienced and influential leaders from both the private and public sectors, provides a platform for stakeholders to engage in detailed discussions on critical areas of Ghana's economy.

The outcomes of the dialogue are expected to inform the development of actionable policies and structural reforms aimed at resetting the country’s economic trajectory and promoting sustainable growth.

The two-day dialogue is being attended by leaders of the private sector, diplomats, representatives of development partners and government officials, including the Minister of Finance, Dr Cassiel Ato Forson; the US Ambassador to Ghana, Virginia Palmer; President of the Africa Centre for Economic Transformation, Dr K.Y. Amoako; economist and Director of the Institute of Statistical, Social and Economic Research (ISSER), Dr Peter Quartey; an economist, Dr Osei Assibey, and business executive and Chairman of the planning committee of the dialogue, Dr Ishmael Yamson, among others. 

Challenges

The President acknowledged that the economy he inherited barely two months ago was in a state of crisis, weighed down by unprecedented levels of debt, soaring inflation, high unemployment figures, declining foreign direct investment and low business confidence.

"The financial struggles that our nation is facing have not arisen overnight.

They have been the result of several years of financial mismanagement, irresponsible borrowing, reckless spending and weak leadership that failed to address the underlying structural issues within our economy," he said.

President Mahama said the challenges had been caused by years of financial imprudence, which had compromised the country's economic resilience and led to a downgrade of the country's international credit rating by credible agencies such as Moody's, Fitch and Standards & Poor.

"Credible rating agencies have all downgraded our international credit rating consecutively, leading to capital flights and a loss of investor confidence and trust," he stated.

Solutions

Amid the gloomy outlook, President Mahama said the economic dialogue was initiated to find solutions to the problems already identified and not to rather recount the challenges.

“We are not here to recount our struggles, nor are we here to resign ourselves to economic stagnation. We are here to seek solutions that will put us on a path of growth trajectory and to ensure that we build an economy that works for every Ghanaian,” he said.

The President explained the urgent need for a collective effort to reset the economic trajectory and promote inclusive growth, macroeconomic stability and structural reforms.

"We are gathered here today because we believe in Ghana's ability to rise again," he said, stressing that the insights and recommendations emerging from the National Economic Dialogue must transcend theoretical frameworks and drive real, impactful decisions that will guide the economy forward.

President Mahama identified several key areas of focus, including restoring macroeconomic stability, structural reforms and economic governance.

"We will focus on practical strategies to restore macroeconomic stability and pave the way for long-term economic transformation," he announced, and added that "this includes developing policies that stimulate growth and create sustainable job opportunities for our rapidly growing population".

The President also emphasised the need for structural reforms to unleash the private sector's potential, and make it the engine of growth that would drive job creation and innovation.

"We will examine the structural reforms that are necessary to unleash the private sector's potential," the President said.

President Mahama also stressed the importance of strengthening economic governance institutions to ensure transparency and accountability at all levels of government while combating corruption and other obstacles to progress.

"We will strengthen economic governance institutions to ensure transparency and accountability at all levels of government," he said.