Ghana’s Mahama returns as president, facing old problems

John Dramani Mahama will be sworn in for his second term as Ghana's president on Tuesday with a fresh mandate to tackle familiar challenges, including corruption, high unemployment, inflation and public discontent.

The opposition leader, 66, won the December 7 presidential election by a wide margin to stage a political comeback in the West African nation, the world's number-two cocoa producer.

He replaces Nana Akufo-Addo, who steps down after serving two terms, continuing Ghana's democratic tradition in a region gripped elsewhere by military coups and jihadist insurgencies.

Following the Covid-19 pandemic, a cost-of-living crisis, an ongoing bailout from the International Monetary Fund and a sovereign debt default, Ghana's economy is again growing.

But Mahama will be under pressure to deliver quickly on campaign promises to curb high youth unemployment and root out entrenched corruption - issues that have fueled distrust in Ghana's political system.

"The average Ghanaian is growing impatient with our democracy," Godfred Bokpin, a finance professor at the University of Ghana, told Reuters.

"People have done their part by voting but they're asking: what have they gotten from this democracy?"

"BANDAGING OPEN WOUNDS"

Analysts and supporters of Mahama’s National Democratic Congress (NDC) party see his political experience and a two-thirds majority in parliament as a strong mandate to take tough decisions and implement credible policies to improve livelihoods and regain investor confidence.

But a looming power crisis will pose an early and familiar challenge.

Mahama became president in 2012 when John Evans Atta-Mills died in office. He won a presidential election a few months later and his first and only term was plagued by power shortages, macroeconomic instability and allegations of political corruption.

He said last month the energy sector was in crisis with preliminary estimates showing arrears to service providers in excess of $2.5bln (R46.5bln). The worsening outlook threatens to curtail output and hamper the nascent economic recovery.

"The outgoing government kept the system running by bandaging open sores," said Bright Simons of Accra-based IMANI think tank. "They left the festering wounds for him."

Simons said Mahama must quickly secure a financing deal with private power producers, who supply about 40% of Ghana’s power while exploring lasting solutions.

GHANAIANS ARE HUNGRY

In addition to promises to invest massively in agriculture and infrastructure, Mahama has pledged to prioritise fighting corruption.

Bokpin and Simons said curbing graft would help restore public trust, but inflation and exchange rate challenges required immediate attention also.

Inflation rose for the third month in a row in November to 23.0%, boosted by surges in food prices.

"We can talk about the skyscrapers and complex things but the reality is that the average Ghanaian is hungry. You must prioritise food production," Bokpin said.

Reuters