Dr. Bawumia’s Economic Failures = Profoundly Hopeless and Disastrous (PhD)

By Ebenezer Ato Ntarkurfah Jackson
Dr. Bawumia took the Ghana cedi from about 3.8/4.2 GHS to the US dollar to now 15/16 GHS to the US dollar. This abysmal performance management of the cedi against the dollar has come to represent another PHD—Profoundly Hopeless and Disaster—in managing Ghana’s economy. Dr. Bawumia, as the running mate in 2016, attacked President Mahama with promises and criticisms, only to lead the country into deeper financial turmoil once in power.

In 2016, Dr. Bawumia, then the running mate of the New Patriotic Party (NPP), outlined six reasons why Ghanaians should vote out the National Democratic Congress (NDC). He criticized the NDC for increasing Ghana’s debt significantly without substantial infrastructural investments to show for it. Bawumia pointed out that the NDC had increased Ghana’s debt by GHC90 billion from 2009 to 2016. He argued that the projects financed by these loans did not justify the amount borrowed and claimed that the NDC was hoodwinking Ghanaians with overstated accomplishments.

Dr. Bawumia’s promises in 2016 were filled with grandiose plans and attacks on the NDC’s alleged mismanagement. He promised to develop a rail network from Accra to Paga, solve water problems, address the energy crisis, build world-class hospitals, and create jobs by establishing factories. However, his administration has failed to deliver on these promises. The cedi has depreciated drastically, becoming one of the worst-performing currencies globally. This decline has led to increased inflation, higher costs of living, and a deteriorating economic environment.

Despite his economic background and supposed expertise, Dr. Bawumia’s tenure has seen a significant downgrade in Ghana’s credit ratings. You do recall that Fitch Ratings downgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating to 'C' from 'CC', indicating a high risk of default. This downgrade reflects the government’s announcement of a suspension of payments on sovereign external debt, a clear sign of economic distress.

The decline in the cedi’s value has been accompanied by a severe lack of foreign investment and a loss of confidence in Ghana’s economic stability. Investors are wary, leading to a sharp decline in holdings of domestic government and corporate bonds by foreign investors. The gross international reserves have also plummeted, reducing the country’s import cover to dangerously low levels.

The reality of Dr. Bawumia’s leadership is a far cry from the promises made in 2016. His administration’s inability to stabilize the cedi, manage the country’s debt, and foster economic growth has plunged Ghana into an unprecedented economic crisis. The contrast between his campaign rhetoric and his actual performance in office is stark.

Ghana deserves better. Under the leadership of Professor Naana Opoku-Agyemang and former President John Dramani Mahama, the NDC offers a vision of competence and realistic economic management. The NDC is committed to restoring economic stability, attracting foreign investment, and ensuring that infrastructural projects translate into tangible benefits for all Ghanaians. It is time for a change—a vote for the NDC is a vote for a better Ghana.

Ebenezer Ato Ntarkurfah Jackson, Cornell University, MBA Class of 2015, [email protected]