Mahama's Second Act: Ghana's President Moves Fast on Economic Reset and Governance Reform

When John Dramani Mahama was sworn in as Ghana's president on January 7, 2025, the occasion carried a weight of historical symmetry that few could ignore. The man who had lost the presidency in 2016, returned to win it in 2024, and now stood at the helm of a nation grappling with its most severe economic crisis in a generation. His inaugural address, delivered in sweltering heat at Independence Square in Accra, was measured in tone but sweeping in ambition: "Ghana deserves better. And under my leadership, Ghana will get better."

Fifteen months into his second presidency, Mahama has moved with a decisiveness that has surprised even some of his supporters. The government has implemented a series of economic and governance measures that, taken together, constitute the most comprehensive policy reset since the country's return to multiparty democracy in 1992. The results are still unfolding, but the early indicators suggest a cautious optimism that Ghana is beginning to find its footing after years of economic turbulence.

The Economic Inheritance

Mahama inherited an economy in distress. Ghana's GDP growth had slowed to 2.9 percent in 2024, down from 6.5 percent in 2021. Inflation, which peaked at 54.1 percent in December 2022, had moderated to 22.8 percent by December 2024 but remained well above the Bank of Ghana's target band of 6 to 10 percent. The cedi, which had lost approximately 50 percent of its value against the dollar between 2022 and 2024, was trading at approximately 14.5 to the dollar at the time of Mahama's inauguration.

Most critically, Ghana was in the midst of a sovereign debt restructuring exercise under the G20 Common Framework. In January 2023, Ghana had become the first country to trigger the Common Framework's Debt Service Suspension Initiative, and by the time Mahama took office, the country had completed the restructuring of approximately $20 billion in external debt — including Eurobonds, bilateral loans, and commercial borrowings — and was in the process of restructuring approximately 183 billion cedis in domestic debt.

The economic pain of the debt crisis and the associated fiscal adjustment had been severe. Government spending had been cut, subsidies had been removed, and public sector wages had been frozen. The poverty rate, which had declined steadily from 23.4 percent in 2017 to an estimated 19 percent in 2021, was projected to have risen back above 24 percent by the end of 2024.

The 24-Hour Economy

Mahama's signature campaign promise — the "24-hour economy" — has become the organising principle of his economic policy. The concept, as articulated by the president, envisions an economy that maximises productive activity by extending operating hours across all sectors: manufacturing running three shifts, ports operating around the clock, and services available 24 hours a day.

The policy is being implemented through a combination of regulatory reform, infrastructure investment, and incentive programmes. The government has introduced tax incentives for companies that operate beyond standard business hours, including a 20 percent reduction in corporate tax for manufacturers with three-shift operations. The Electricity Company of Ghana has been directed to prioritise reliable power supply for 24-hour economy operations, and the Ministry of Employment and Labour Relations has developed guidelines for night-shift work that include premium pay, transport allowances, and occupational health provisions.

The early results are mixed but promising. The Tema Free Zone, Ghana's premier industrial area, has reported a 25 percent increase in manufacturing output since the launch of the 24-hour economy programme, with several companies adding night shifts for the first time. The Takoradi Port, which now operates 24 hours a day, has reduced vessel turnaround times by 35 percent, increasing its throughput capacity without additional infrastructure investment.

Critics have argued that the 24-hour economy concept is more of a branding exercise than a substantive policy, and that its success depends on factors — particularly electricity reliability and security — that have historically been weak in Ghana. The government acknowledges the challenges but insists that the policy is creating a cultural shift in how Ghanaians think about productivity and economic opportunity.

Debt Restructuring and Fiscal Discipline

The completion of Ghana's debt restructuring in mid-2025 marked a significant milestone. Under the terms of the restructuring, external commercial creditors agreed to a 37 percent reduction in the net present value of Ghana's Eurobond holdings, extended maturities by an average of 6 years, and reduced coupon rates. Bilateral creditors, coordinated through the Paris Club, provided comparable relief. The domestic debt restructuring, completed in early 2025, involved the exchange of existing treasury bills and bonds for longer-dated instruments with lower coupons.

The restructuring has reduced Ghana's debt-to-GDP ratio from approximately 88 percent in 2023 to an estimated 72 percent by the end of 2025. The fiscal space freed by lower debt service costs has allowed the government to increase spending on priority areas including education, healthcare, and infrastructure.

The Bank of Ghana, under Governor Johnson Asiama, has maintained a tight monetary policy stance to anchor inflation expectations. The policy rate, which was raised to 30 percent during the crisis, has been gradually reduced to 24 percent as inflation has moderated to 15.2 percent by March 2026. The central bank has also rebuilt its foreign exchange reserves, which now stand at approximately $8.5 billion — equivalent to approximately 4.2 months of import cover, up from 2.1 months at the depth of the crisis.

Governance and Anti-Corruption

Mahama has made governance reform a centrepiece of his second term, partly in response to public anger over corruption scandals that plagued the previous administration. The Office of the Special Prosecutor, which had been criticised for ineffectiveness under previous leadership, has been reconstituted with a new prosecutor — former Supreme Court Justice Sophia Akuffo — and a significantly expanded budget.

The OSP has launched investigations into several high-profile cases, including the alleged misappropriation of funds from the National Health Insurance Scheme, the controversial Agyapa Royalties Transaction, and the procurement irregularities at the Ministry of Health. The first convictions under the new leadership were secured in February 2026, with two former government officials sentenced to prison terms for procurement fraud.

The government has also introduced a series of transparency measures, including the mandatory publication of all government contracts above 1 million cedis on a public procurement portal, the establishment of an asset declaration regime for all senior public officials, and the strengthening of the capacity of the Auditor-General's office to follow up on its findings.

Public scepticism about the government's anti-corruption credentials remains, however. A poll conducted by the Afrobarometer network in early 2026 found that 62 percent of Ghanaians believed that corruption had increased or stayed the same under the Mahama administration, while only 24 percent believed it had decreased. The government has acknowledged the perception challenge and has committed to a sustained, long-term effort to change the culture of impunity.

Social Policy and the Cost of Living

The cost of living remains the most pressing concern for ordinary Ghanaians. While inflation has declined from its 2022 peak, food prices remain elevated, with the price of a 50-kilogramme bag of rice at approximately 650 cedis — more than double the 2021 price. The government has introduced several measures to provide relief, including the elimination of import duties on selected food items, the expansion of the LEAP cash transfer programme to an additional 200,000 households, and the subsidisation of public transport fares.

The free Senior High School policy, introduced by the previous administration and maintained by Mahama, continues to enjoy broad public support, though concerns about quality and infrastructure capacity persist. Mahama has committed to a comprehensive review of the policy to address implementation challenges, while maintaining the principle of free secondary education.

The Outlook

Mahama's second presidency is still in its early stages, and the full impact of his policy reset will take years to materialise. The economic indicators are moving in the right direction — growth is accelerating, inflation is declining, the currency has stabilised, and debt sustainability is improving. But the social costs of the crisis are still being felt, and public patience for structural reform is not unlimited.

The president's challenge is to translate the economic recovery into tangible improvements in living standards, job creation, and public service delivery — the metrics by which most Ghanaians will ultimately judge his second term.

As Mahama himself acknowledged during a press conference in March: "The mandate you gave us was not just to fix the economy. It was to restore hope. We are working on it, and we will not rest until every Ghanaian feels the change."