As Ghana awaits the official results of the 2024 general elections, Vice President Dr. Mahamudu Bawumia, the presidential candidate of the ruling New Patriotic Party (NPP), has conceded defeat to Former President John Dramani Mahama of the opposition National Democratic Congress (NDC).
This marks a significant political moment, as Mahama’s victory represents a remarkable comeback after losing to President Akufo-Addo in the 2016 elections.
Mahama’s triumph has been seen as a response to growing public dissatisfaction with the current government, which has been struggling with economic challenges. Before the election, the Economist Intelligence Unit (EIU), a prominent global research and analysis firm, predicted a victory for Mahama, citing economic pressures as a central factor.
The EIU’s projection highlighted the declining living standards, limited job opportunities, and poor public services under the current administration, which contributed to discontent among voters. “Ghana is likely to experience a transfer of power from the ruling New Patriotic Party to the opposition National Democratic Congress, largely driven by declining living standards, limited job opportunities, and poor public services,” the EIU stated in its analysis.
The report also noted broader economic trends impacting many African countries, with rising debt burdens and external shocks contributing to growing instability. It explained that Ghana, like many other African nations, has been affected by excessive debt and the resulting financial strain, further exacerbated by the fallout from the COVID-19 pandemic, the Russia-Ukraine war, and climate-related challenges. The EIU warned that Ghana’s economic difficulties, including inflation, currency devaluation, and high debt repayment pressures, were likely to weigh on the country’s future stability.
While the economic environment played a key role in Mahama’s victory, the EIU’s analysis also placed emphasis on the broader African context, where nations like Kenya and Zambia are facing significant debt challenges. It noted that countries burdened by external debt would have to confront growing risks without successful debt restructuring, citing Ghana, Malawi, Mozambique, Ethiopia, and Zimbabwe as nations that may face similar pressures in the coming years.
As the political landscape in Ghana shifts with Mahama’s victory, the economic concerns highlighted by the EIU will likely remain at the forefront of national discourse, with the incoming administration tasked with addressing the country’s mounting fiscal challenges.
