Ghana has witnessed a remarkable economic turnaround under the leadership of President John Mahama, culminating in a period of stability and restored purchasing power for its citizens. His first year in office, marked by decisive policy interventions and astute economic management, has resulted in a significant drop in inflation, setting the stage for sustainable growth and development.
The most striking achievement of President Mahama’s first year has been the dramatic reduction in inflation. At the close of December 2024, Ghana’s inflation rate stood at a worrying 23.8%, eroding the value of savings and making it difficult for households to afford essential goods and services. This high inflation rate was a major concern for the government and the Ghanaian people.
However, within a single year, President Mahama’s administration implemented a series of measures that effectively tackled inflationary pressures. Through disciplined fiscal policy, strategic investments, and a focus on boosting domestic production, the government successfully brought inflation down to a single-digit figure of 5.4% by December 2025.
This remarkable achievement is particularly significant because it represents the lowest inflation rate Ghana has experienced since the 1960s. The single-digit inflation rate is not just a statistic; it has a tangible impact on the lives of ordinary Ghanaians.
The most direct benefit of this achievement is the restoration of purchasing power for Ghanaian households. With inflation under control, the prices of goods and services have stabilised, allowing families to stretch their incomes further and afford more of their needs. This has resulted in an increased standard of living, reducing financial stress and creating a greater sense of economic security.
President Mahama’s economic strategy has focused on several key areas to achieve this success. One crucial aspect has been fiscal discipline. The government has been careful to manage its spending, avoiding excessive borrowing and ensuring that public funds are used efficiently. This has helped to stabilise the national debt and prevent inflationary pressures from building up.
Strategic investments have also played a vital role. The government has prioritised investments in key sectors such as agriculture, infrastructure, and manufacturing. These investments have boosted domestic production, reducing the country’s reliance on imports and creating jobs for Ghanaians.
In the agricultural sector, for example, the government has supported farmers with access to credit, fertilizers, and improved farming techniques. This has led to increased crop yields and lower food prices, further contributing to the reduction in inflation.
Furthermore, the government has focused on improving infrastructure, including roads, railways, and ports. These improvements have facilitated trade and commerce, making it easier for businesses to transport goods and services across the country. This has boosted economic activity and created a more favourable environment for investment.
President Mahama’s success in controlling inflation has not only improved the lives of ordinary Ghanaians but also enhanced the country’s reputation on the international stage. With a stable economy and a predictable business environment, Ghana has become a more attractive destination for foreign investment. This will further boost economic growth and create opportunities for Ghanaian businesses.
The first year of President Mahama’s administration has been marked by a remarkable economic transformation. The sharp drop in inflation, coupled with the restoration of purchasing power for Ghanaian households, has set the stage for a period of sustainable growth and development. While challenges undoubtedly remain, the government’s focus on fiscal discipline, strategic investments, and boosting domestic production provides a solid foundation for building a prosperous future for Ghana. As President Mahama continues his tenure, the nation looks forward to further progress and the realisation of his vision for a better Ghana.
Anthony Obeng Afrane
