Research Shows Failed NPP Economic Policies Underpin Calls for Change in Ghana

As Ghana gears up for the 2024 general election, one thing has become increasingly clear: the country is in the grips of a severe economic crisis that demands urgent action. Under the leadership of the Bawumia-Akufo Addo New Patriotic Party (NPP), Ghana has seen a sharp rise in debt, surging inflation, and a rapidly deteriorating standard of living. If Ghanaians are to avoid further economic decline, a change in leadership is not only necessary but crucial.

The NPP’s economic policies, initially touted as transformative, have instead led the country down a path of fiscal mismanagement and social inequity. This election is a critical juncture, and Ghanaians must seize the moment to elect better leaders who can steer the country away from this economic mess. Analyses of several independent research reports show how failed NPP economic policies underpin calls for change. Here are the reasons why change is important:

Ghana’s debt-to-GDP ratio has ballooned from 56.8% in 2016 to more than 83% (Bank of Ghana estimates) by 2024, according to the Institute for Fiscal Studies (IFS) and the International Monetary Fund (IMF). This rapid accumulation of debt has placed an enormous strain on public finances, leaving the country with little room to invest in vital infrastructure, education, and healthcare.

Despite large-scale borrowing, little has been achieved in terms of sustainable economic development. The African Center for Economic Transformation (ACET) has criticized the government’s reliance on Eurobonds and external loans, which consume over 70% of government revenues just to service debt. At some point, Fitch and Moody’s downgraded Ghana’s sovereign credit rating to CCC, citing the growing risk of default. This financial instability has made it more expensive for Ghana to borrow on international markets, compounding the country’s fiscal woes. Rather than managing the economy prudently, the NPP government has allowed public debt to spiral out of control, leaving future generations to pay for their reckless financial decisions.

Under the NPP, inflation has surged to a 20-year high. The Ghanaian cedi has depreciated sharply, losing value against the US dollar. This has led to skyrocketing prices for essential goods, from food to fuel, putting immense pressure on ordinary Ghanaians. The Center for Economic Policy Analysis (CEPA) noted that the government’s failure to stabilize the currency and control inflation has deepened economic hardship, particularly for the poor and middle class.

The Economic Governance Platform (EGP), a coalition of civil society organizations, attributes this crisis to the government’s failure to diversify the economy and reduce dependency on imports. Weak domestic production, coupled with excessive borrowing, has made the economy highly vulnerable to external shocks. The NPP’s inability to address these structural weaknesses has left many Ghanaians struggling to make ends meet.

In 2022, the NPP government secured a $3 billion bailout from the IMF to help stabilize the economy. While this intervention may have provided temporary relief, it also came with harsh austerity measures that have further strained Ghanaians. Public sector wages have been frozen, taxes have increased, and spending on critical social services has been slashed. The Institute for Economic Affairs (IEA-Ghana) has warned that these austerity measures, coupled with continued borrowing, will only deepen inequality and poverty in the long run.

The fact that Ghana has had to return to the IMF after vowing not to do so – for the 17th time since independence – is a clear indication of the government’s failure to manage the economy. The IFS and the Center for Democratic Development (CDD-Ghana) have both emphasized that recurring IMF bailouts only underscore the structural weaknesses in Ghana’s economic policies. Instead of addressing the root causes of the fiscal crisis, the government has opted for temporary fixes that further undermine the country’s economic sovereignty.

The economic mismanagement under the NPP has had devastating social consequences. According to the World Bank, nearly 25% of Ghanaians live below the poverty line. Youth unemployment, estimated to be above 12% in 2023, has reached crisis levels, leaving many young people disillusioned and without opportunities for a better future. The Institute of Statistical, Social, and Economic Research (ISSER) has pointed out that despite promises of job creation, the NPP government has failed to deliver meaningful employment opportunities, especially in sectors like agriculture and manufacturing.

The African Development Bank (AfDB) and local think tanks like the Social Enterprise Development Foundation (SEND-Ghana) have similarly criticized the government for not doing enough to alleviate poverty and support the vulnerable. Rising food prices, escalating fuel costs, and stagnant wages have pushed millions of Ghanaians into poverty, with the government offering little in the way of a safety net.

In addition to its economic failures, the NPP government has been plagued by corruption scandals and a lack of accountability. Transparency International’s Corruption Perception Index for 2023 ranked Ghana 72nd out of 180 countries, a sharp decline from previous years. High-profile cases of embezzlement and misappropriation of public funds have gone largely unpunished, eroding public trust in government institutions.

Civil society organizations, such as the Ghana Integrity Initiative (GII) and CDD-Ghana, have repeatedly called for greater transparency in public procurement and more robust anti-corruption measures. However, little has been done to curb the culture of impunity that has allowed corruption to flourish under the current NPP administration.

The evidence is overwhelming: Ghana cannot afford another four years of economic mismanagement, rampant corruption, and social inequality. A change in leadership in 2024 is not just desirable—it is imperative. New leadership is needed to restore fiscal discipline, tackle inflation, create jobs, and root out corruption. The country requires leaders who will prioritize the long-term health of the economy over short-term political gains.

International think tanks like the Carnegie Endowment for International Peace have argued that Ghana needs competent leadership that will implement structural reforms to diversify the economy and attract foreign direct investment (FDI). The International Growth Centre (IGC) has also emphasized the importance of reducing Ghana’s dependency on external loans and focusing on domestic production to create a more resilient economy.

The Institute for Fiscal Studies (IFS) and the African Center for Economic Transformation (ACET) have called for a comprehensive reform of fiscal policy, emphasizing revenue mobilization, prudent public spending, and transparency. These are the kinds of changes that a new government must prioritize if Ghana is to escape its current economic malaise.

The 2024 election presents Ghanaians with an opportunity to make a crucial decision about the future of the country. The current administration’s record of economic mismanagement, rising debt, inflation, unemployment, and corruption makes it clear that continuing along the same path will only lead to further deterioration.

It’s time for Ghanaians to demand better. Voting for change will offer the country a fresh chance to begin the process of rebuilding the economy, restoring public trust, and creating a future that offers opportunities for all. The stakes are high, but with the right leadership, Ghana can emerge stronger and more resilient.

Written by: Prince Kassim Senaya Alubankudi, MBA
Policy Analyst at UPDI Africa & International Business Consultant