Ghanas Mahama Targets Spending But Imf Deal Poses Challenge

Former President John Mahama, who secured a return to office with victory in Ghanas election at the weekend, has pledged to boost spending and ease cost of living pressures, but faces a tough task squaring his priorities with existing commitments under a 3bn IMF bailout.

While he has yet to offer further clarity on his campaign pledges, Mahama, who led the country from 2012-17, said in a victory speech that his win offered a new beginning, a new direction for Ghana, which has been wracked by high inflation and declining living standards.

He previously pledged to establish a National Economic Recovery Task Force in his first month in office, which will include representatives from across industry and will be tasked with suggesting practical ideas for boosting growth and living standards while turning Ghana into a 24-hour economy.

To try and boost stimulate greater activity in the private sector, Mahama has also suggested he would expand credit for small and medium-sized enterprises and create more business incubators. He also pledged to bring back the Jobs for Youth scheme to boost employment among young people, and to halt the controversial imposition of VAT on essentials such as food and petrol in order to ease cost of living pressures.

After a period of austerity in the aftermath of Ghanas debt default in 2022, Mahama has also promised to increase investment in areas including education, public health, and infrastructure.