5 Economic Pain Points the new Mahama-Led Government Should Swiftly Address by the end of 2025.

The study of the French Revolution, which took place between 1789 and 1799, still highlights a crucial relationship: if a ruling government is unable to effectively manage the economy, it risks losing the support of its constituents and possibly experience a significant political upheaval. The largest margin a ruling government has ever lost by was almost 1.6 million votes in the 2024 election. Ghanaians cautioned politicians by the “1.6 million-vote gap” that deliberate mediocrity, cheap Machiavellian acts (divide, deceive and rule), and hype-over-competence leadership will not last in this age of information overload.

?The new National Democratic Congress (NDC) government in Ghana faces a daunting task of revitalizing the economy and addressing pressing challenges. Here are five key economic pain points that demand immediate attention by the end of 2025:

1. Erratic Power Supply:

Dumsor, the infamous power outages, continues to plague Ghana, hindering industrial growth and productivity. The power supply issues, which cause small businesses in Ghana to lose an estimated GH? 30 million daily, must be given top priority by the new government in a nation where over 80% of jobs are self-created representing over 1.7 million microbusinesses. Whether the problems are technical or financial the typical Ghanaian can only assess by the mid to year-end 2025 how competent this new government can address this in order to enable livelihood and businesses to thrive.

2. Food Price Inflation: Poverty has been made worse by rising food prices, which have reduced household purchasing power. Many Ghanaians now consider necessities like rice, vegetables, and cassava to be luxury commodities. Some of these commodities have seen price increases of over 300%, completely eroding the 16% average pay increase as of 2024. The new government must implement policies to boost domestic food production, improve agricultural infrastructure, and strengthen food distribution networks to stabilize prices.

3.Youth Unemployment and Low Wages:

Poor wage and high youth unemployment are still major issues that impede economic growth and feed social instability. The majority of employable youth between the ages of 18 and 35 have been plagued by this double issue. Due to the persistent unemployment issue, those who are employed—particularly the over1 million tertiary graduates—now confront low pay, with some earning as low as GH? 500.00 ($34) a month. To address this issue, the new government must fund initiatives for skill development, encourage entrepreneurship, and collaborate with the private sector to establish high-quality jobs in strategic industries.

4. High Interest Rates for Small Businesses:

High lending rates discourage small and medium-sized businesses (SMEs), which impedes economic expansion and job creation. At the moment, some financial institutions (Savings and Loans/Micro Finance or Credit) that primarily cater for the more than 1.7 million microbusinesses charge up to 48% annually. This suffocate self-employed business owners, who account for more than 80% of all jobs and are already suffering from unstable electricity supplies and excessive inflation.

The NDC government should collaborate with financial institutions to reduce interest rates and provide access to affordable credit for SMEs.

5. 5. High Utility Costs: The high cost of utilities was another economic issue that affected voters' choices in the 2024 election. Water and electricity bills continue to be a major hardship for both homes and businesses. The new government needs to examine ways to reduce utility bills, such as lowering and or eliminating taxes associated with utility production and distribution, addressing corrupt contract and procurement practices and dealing with huge debts owed by "big” institutions/companies and businesses which the average Ghanaian must recompense on their behalf.

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As John Maxwell once wrote, "leadership ability is the lid that determines a person's or group’s level of effectiveness." Addressing these economic issues calls for a thorough, multifaceted strategy supported by ethically sound leadership. Furthermore, Ghanaians will truly evaluate this new Mahama-led government based on how successfully it handles some of these issues from mid to end of year 2025.

Author: Samuel Tuffour Ferguson

Email: [email protected]

Contact: +233240214120