Ghana Now – The NPP Mess
Over the past eight years, Ghana has been gripped by one of the most devastating economic and political crises in its history. The NPP administration has overseen a regime characterized by rampant corruption, economic mismanagement, abuse of office, and systematic neglect of the Ghanaian people. The once-thriving nation, which was steadily progressing under the NDC government, now finds itself in a dire state of collapse and despondency.
Economic Catastrophe: A Nation Bankrupt
Under the stewardship of the NPP, Ghana’s economy has deteriorated to the point of bankruptcy. This is evident in the country’s dismal performance across key economic indicators:
Unsustainable Public Debt
- Ghana's public debt has ballooned from GHS120 billion in 2016 to an astronomical GHS742 billion today, an increase of over 500%.
- With a debt-to-GDP ratio of 104% in 2022, Ghana has surpassed the threshold of sustainability, plunging into a full-blown debt crisis.
- The nation’s default on sovereign debt has led to a "junk" status credit rating by all major credit rating agencies, severely damaging its reputation on the global stage.
Currency Freefall
- The Ghanaian cedi, once relatively stable, has lost its value at an unprecedented rate. From an exchange rate of GHS4 to $1 in 2016, it now trades at nearly GHS16 to $1.
- In 2022 alone, the cedi depreciated by 54%, a record low that has triggered inflationary pressures and increased the cost of living.
Skyrocketing Inflation
- Inflation has reached a staggering 54%, one of the highest rates globally. This has eroded purchasing power and rendered basic goods and services unaffordable for millions of Ghanaians.
- The cost of essential items like food and fuel has surged, plunging many households into poverty.
Excessive Borrowing and Capital Flight
- The NPP’s reckless borrowing has led to an exodus of foreign investors, exacerbating the capital flight that undermines economic stability.
- Lending rates are now as high as 35%, choking private sector growth and driving businesses into insolvency.
Social Impact: A Crisis of Livelihoods
Rising Poverty and Hunger
- A recent Ghana Statistical Service report revealed that 8.5 million Ghanaians—25% of the population—went a full day without food in 2023. This alarming statistic underscores the gravity of the humanitarian crisis.
- The high cost of living, coupled with stagnant wages, has plunged many families into abject poverty.
Record Unemployment
- Unemployment has soared to nearly 15%, with youth unemployment at a shocking 32%.
- Thousands of jobs have been lost across sectors, leaving families destitute and young people hopeless about their future prospects.
Failing Public Services
- The government’s inability to meet its statutory obligations has left schools without textbooks and senior high school students without proper meals.
- Contractors and service providers owed billions of cedis by the government are struggling to stay afloat, further crippling the economy.
Corruption and State Capture
Endemic Corruption
- Corruption has reached unprecedented levels under the NPP government, as noted by the Catholic Bishops’ Conference, which described it as “massive uncontrolled corruption.”
- Public resources meant for development projects have been siphoned off into private pockets, leaving essential sectors like health, education, and infrastructure in shambles.
State Capture and Cronyism
- The NPP has entrenched a culture of state capture, where governance structures are manipulated to serve the interests of a privileged few.
- Nepotism and cronyism have become the norm, further weakening public trust in state institutions.
Taxation and Business Collapse
Punitive Tax Burden
- Over 40 new taxes have been introduced, placing an unbearable burden on ordinary citizens and businesses alike.
- Excessive taxation has stifled entrepreneurship and driven many businesses, including multinational corporations, to relocate to neighboring countries.
Hostile Business Environment
- The toxic investor climate created by the NPP government has discouraged investment and innovation.
- Small and medium-sized enterprises, which form the backbone of Ghana’s economy, have been disproportionately affected, leading to widespread closures and job losses.
The Human Toll: A Nation in Despair
Amid the economic collapse, the Ghanaian people have borne the brunt of the NPP government’s failures. Families are struggling to make ends meet, children are being denied access to quality education, and the healthcare system is woefully inadequate.
Uncontrolled corruption, coupled with the impunity enjoyed by those in power, has deepened public disillusionment. Trust in governance is at an all-time low, and the once-promising future of Ghana now appears uncertain.
The Call for Urgent Rescue
Ghana is at a crossroads. The NPP’s eight-year reign has not only reversed the gains made under the NDC government but also pushed the nation into a socioeconomic quagmire. The need for a new direction is urgent and undeniable.
The 2024 general election represents an opportunity for Ghanaians to reclaim their country and restore hope. The National Democratic Congress is committed to addressing the systemic failures of the NPP administration and putting Ghana back on the path to sustainable development.
Together, we can rebuild and reset Ghana for a brighter, more prosperous future.