Ghana’s opposition leader and former president, John Dramani Mahama, has vowed to renegotiate the country’s IMF program to reduce taxes and restructure debt repayments if he wins the December 7 presidential election, emphasizing the need for economic stability and investor-friendly policies.
Speaking from his office in Accra on Wednesday, the National Democratic Congress (NDC) leader criticized the current administration’s approach under the IMF deal. “Government is not doing much to reduce expenditure but is focused on increasing taxes, making Ghana an unfavorable destination for business,” Mahama said.
The IMF program, which secured a $3 billion bailout for Ghana, required significant tax hikes to address a debt crisis. Measures included raising the value-added tax by 2.5 percentage points to 15% and introducing a growth and sustainability levy of up to 5% on pretax profits.
Mahama, 65, a frontrunner in the race, said his administration would engage the IMF on refinancing domestic debt worth 182 billion cedis ($11.1 billion) due in 2026 and a major commercial loan maturing in 2028. “We need to smoothen the debt repayment trajectory to achieve stability, reduce inflation, and stabilize our currency,” he said.
Focus on Economic Recovery
Mahama did not rule out extending the IMF program, set to expire in May 2026, to accommodate adjustments. Ghana’s debt exceeded 100% of GDP in 2022, prompting a default, a sharp currency devaluation, and a cost-of-living crisis.
While reforms have helped Ghana exit default and reduce inflation from 54.1% in December 2022 to 22.1%, many citizens and businesses still struggle. Critics blame the ruling New Patriotic Party (NPP) for the economic hardships.
A recent poll by Global InfoAnalytics Ltd. projects Mahama with 51.1% of the vote, ahead of NPP candidate Vice President Mahamudu Bawumia, who has 37.3%.
Economic Revitalization Plans
Mahama has unveiled ambitious proposals to revive the economy, including a “24-hour economy” with three eight-hour work shifts and a $10 billion investment in sectors like petrochemicals, mining, and transport under a plan dubbed “The Big Push.”
“We’re going to make Ghana a good and pleasant environment for investors again,” Mahama said, emphasizing the need for private-sector and foreign investments.
The upcoming elections mark a pivotal moment in Ghanaian politics, dominated by the NDC and NPP since 1992. President Nana Akufo-Addo’s second and final term concludes on January 7.
