The state of Ghana’s national economy and the way forward are at the center of debate, particularly at the National Economic Dialogue, which was launched on Monday, March 3, 2025, as part of efforts to reset Ghana’s development agenda. It is crucial to support and guide President John Dramani Mahama in his second term to ensure the successful implementation of a strong and effective national agenda. Understanding the facts about Ghana’s economic situation is essential for the country’s progress.
I extend my gratitude to Dr. Ismael Yamson, Chairman of the Committee for the National Dialogue, for his eloquent keynote address. I also commend Dr. K.Y. Amoaku for his insightful historical account of Ghana, which is necessary for diagnosing the country’s challenges and setting the right tone for dialogue and solutions.
Dr. Amoaku provided a compelling narrative on the difficulties Ghana has faced in the Fourth Republic. While he highlighted the ideological divide between the dominant political parties—the NDC and NPP—as a significant contributing factor to Ghana’s struggles, as well as issues such as illegal mining, he fell short of holding specific regimes accountable for their roles in the country’s economic challenges.
To ensure the emergence of strong leadership and responsible citizenship, it is crucial to foster a new kind of leader—one who is dedicated to national progress, selfless, honest, informed, and committed to the collective good over personal gain. As Dr. Kwame Nkrumah, the founder of Ghana, once advocated, citizens must actively contribute to the development of a unified and prosperous nation by setting aside greed and vanity in service of the country.
Ghana needs bold citizens, not passive spectators, as emphasized by Her Excellency Dr. Naana Konadu Agyeman Rawlings. Citizens must be vocal about the issues affecting the country and demand corrective actions. In line with this, I, the author, known as “Bogobiri,” seek to set the record straight regarding Ghana’s economic struggles in the Fourth Republic. These struggles, whether knowingly or unknowingly, have been exacerbated by the administrations of President Mahama and President Nana Akufo-Addo, worsening Ghana’s ability to develop at the pace of its Asian counterparts.
I appreciate President Mahama for urging citizens not to remain spectators but to make their voices heard by offering concrete contributions to his second administration. This is a critical step in resetting Ghana’s development agenda and realizing the vision of a prosperous nation.
A Review of Ghana’s Economic History
President Mahama, as a historian and a devout Christian, must recognize that Ghana stands at a crossroads. A review of past mistakes is necessary to shape a better future. Ghana must commit to never allowing military coups, mismanagement, or looting schemes to occur again—an issue that should be central to the National Economic Dialogue.
I also acknowledge Finance Minister Dr. Atto Forson for his presentation on the economy and the way forward. However, he failed to explain why Ghana has increasingly relied on treasury bills, particularly in the later years of President Akufo-Addo’s administration and the present. The reality is that economic mismanagement, compounded by external factors such as the COVID-19 pandemic, the Russia-Ukraine war, actions by the U.S. Federal Reserve, and looting schemes across various administrations (except the late President J.E.A. Mills’ NDC government), has brought Ghana to this point.
Economic Errors in the Fourth Republic
President Rawlings’ Administration
As the first president of Ghana’s Fourth Republic, Jerry John Rawlings failed to implement a robust import substitution strategy. His administration did not adequately address the colonial-era Guggisberg economy, missing the opportunity to drive large-scale agricultural transformation and agro-industrialization to position Ghana competitively in the global market.
The framers of the 1992 Constitution established the National Development Planning Commission (NDPC) as the vehicle for long-term economic planning. They anticipated potential risks arising from Ghana’s ideological divide—capitalism from the Busia-Dombo political tradition and socialism from the Nkrumah-Liman tradition. The NDPC was meant to serve as Ghana’s economic management team, bringing together the Finance Minister, the Governor of the Bank of Ghana, the Government Statistician, and other key figures to develop and oversee a unified national development policy.
However, the Rawlings administration failed to leverage this constitutional framework effectively. Instead of fostering a truly national vision—such as Vision 2020, which could have guided successive governments—his administration focused on an NDC-specific vision. This misstep allowed subsequent governments, such as President Kufuor’s, to change Ghana’s economic vision at will, undermining continuity and long-term planning.
Additionally, the Rawlings administration mismanaged the energy sector—a problem that persisted across all governments in the Fourth Republic. Corruption also plagued his tenure, as evidenced by the Avayime Rice Project (Quality Grain Company scandal), which led to the prosecution of Juliet Cotton in the U.S. Vice President J.E.A. Mills had cautioned against further payments to Mrs. Cotton, but his warnings were ignored, resulting in a $2 million financial loss to the state.
President Kufuor’s Administration
President John Agyekum Kufuor’s government also failed to fully implement the NDPC’s vision. While his administration attempted to strengthen Ghana’s economic fundamentals—establishing Farmer Service Centers, promoting agricultural mechanization, and pledging 10% of the national budget to agriculture—these efforts fell short of transforming the economy.
One of Kufuor’s biggest policy blunders was in the mining sector. He failed to recognize that small-scale mining had historically been restricted (from 1906 to 1986) due to its environmental impact. His administration’s ambiguous policies on small-scale mining allowed it to flourish, ultimately contributing to the widespread environmental degradation seen today.
Additionally, Kufuor’s government made a miscalculated attempt to enable Ghanaians to dominate the mining sector by sending over 300 Ghanaians—including Chairman Wontumi and other key figures—to China for mining training. Many of these individuals returned with Chinese investors and introduced destructive mining practices, including the use of excavators and Chanfang machines.
President Mills’ Administration
President John Evans Atta Mills made some progress by continuing the establishment of Farmer Service Centers. However, his administration failed to hold previous officials accountable for corruption, particularly in the Kufuor government. His tenure did not correct the systemic issues in the mining sector, allowing illegal small-scale mining (galamsey) to continue unchecked.
President Mahama’s First Administration
President Mahama’s first term was marked by serious economic missteps. He failed to uphold the vision of the NDPC and made policy decisions that severely harmed the economy, particularly in the agricultural and mining sectors.
Instead of continuing the Farmer Service Centers established by previous governments, his administration sold tractors and other mechanized equipment to individual farmers—a decision he later admitted was a mistake.
His government also introduced laws that facilitated looting in the mining sector. The Minerals and Mining Regulation (Support Services) 2012 (LI 2174) allowed corporate entities, including foreign companies, to participate in small-scale mining. This led to an influx of Chinese investors who imported excavators, worsening illegal mining activities.
Furthermore, Mahama’s administration failed to classify small-scale mining as a no-go area for foreign investors under the Ghana Investment Promotion Centre (GIPC) Act 2013 (Act 865). This oversight opened the floodgates for foreign control over Ghana’s mining industry.
One of the most damaging policies was the removal of the Precious Minerals Marketing Company’s monopoly on gold exports, allowing foreign entities to buy and export gold directly. This led to massive gold smuggling—reportedly amounting to $4 billion in lost revenue in 2015-2016 alone. A plane was even intercepted in Dubai in 2016 carrying smuggled Ghanaian gold.
Shockingly, Mahama’s government relegated the Precious Minerals Marketing Company to a mere assaying role, yet failed to rename it accordingly.
Conclusion
Ghana’s economic struggles in the Fourth Republic stem from a combination of poor planning, policy missteps, and corruption across successive administrations. A national economic dialogue must address these historical failures to ensure Ghana moves forward with sustainable development policies.
To be continued in Part Two on March 4, 2025.
