What Ghana's private sector expects from Ghana's new leadership

Ghana saw a historic day at the Black Star Square in Accra with the inauguration of John Dramani Mahama as the 14th President of the nation. The ceremony also marked the swearing-in of Ghana's first female Vice President, Jane Naana Opoku Agyemang, creating an air of unprecedented developments and a sense of history in the air. However, amidst the celebrations, there was a tone of cautious optimism across the country, as the private sector and analysts alike shared their expectations and concerns for the new leadership in the country. President Mahama's return to power comes with promises to tackle Ghana's economic crisis, corruption, and high youth unemployment. However, Bright Simons, President and Founder of mPedigree, highlighted the need for the President to get the sequencing right in his approach. The challenge lies in balancing economic recovery with growth initiatives, such as improving the business environment and cutting taxes. Simons emphasized the importance of effective management over grand blueprints, citing weak execution in the past decade as a critical issue that needs addressing. One of the pressing concerns facing the new administration is the energy situation in Ghana. With potential power crises looming due to problems with gas infrastructure and fuel procurement, decisive action and skilled management are crucial to avoid a repeat of past power shortages that impacted public perception of the government. Simons stressed the need for close management and making difficult decisions around procurement and reform in the energy sector. Another significant challenge highlighted by Simons is Ghana's debt burden and fiscal reforms. With debt servicing consuming over 120 percent of government revenue in 2020, the President faces tough choices on cutting the fiscal deficit, addressing poor tax administration, and eliminating tax waivers that benefit politically connected individuals. The private sector expects meaningful fiscal reforms to improve the business environment and support small and medium enterprises. In terms of agriculture, the President's focus on making investments to boost the sector is crucial for addressing food inflation and ensuring food security for Ghanaians. Simons emphasized the need for transformative investments in commercial agriculture, land tenure reform, climate insurance, and modernizing marketing boards to enhance productivity and reduce food prices. On the issue of high youth unemployment, the President's '24-hour economy' plan aims to increase productivity and competitiveness to create jobs. Transforming technical education to equip youth with relevant skills and coordinating efforts to boost demand and business confidence are essential for long-term job creation. Simons emphasized that job creation programs are medium-term initiatives that require sustained effort. Regarding foreign policy, Ghana's pro-African integration stance is expected to continue under the new administration, with a potential shift towards engaging more with Eastern partners like China, Russia, and Brazil. Diversifying sources of investment and aid will be crucial for Ghana, especially given the challenges of limited access to international markets and bilateral aid. As Ghana embarks on a new chapter under the leadership of President Mahama and Vice President Agyemang, the expectations are high, but the challenges are equally daunting. Navigating the economic landscape, addressing critical sectors like energy and agriculture, and implementing effective fiscal and governance reforms will be key to realizing Ghana's growth potential and fulfilling the promises made to the people.