The 5 unwanted legacies of the Akufo-Addo-Bawumia-government

During the 2016 general elections, the entire country was thrown into an unprecedented euphoria by the charismatic and compelling characters of Nana Addo Dankwa Akufo-Addo and his then running mate Dr. Mahamudu Bawumia. They captured the imaginations of the masses and won their confidence. The two were convincing and the oratory skills of Akufo-Addo coupled with his rendition of “I am incorruptible”, “we have the men” and “I will not run a family and friends government”. Ghanaians were convinced that Akufo-Addo and Dr. Bawumia were the answer to their prayers.

However, the current Akufo-Addo-Bawumia led administration will leave behind legacies never seen in this country. This article examines the five most intriguing ones among the lot.

Suspension of Debt Servicing:
Due to an unprecedented economic crises in this country, the government decided to suspend servicing its external debts. This is the first time any government of this country has embarked on this trajectory. The alarming level of the country’s reserves which was occasioned by economic mismanagement has made it impossible for the government to continue with debt servicing. This situation was caused by the excessive borrowing by the government, despite the advice by the Civil Service Organisations (CSOs) and the opposition National Democratic Congress (NDC). The excessive borrowing led to enormous interest payments on external loans which was projected to cost the government more than $3billion, with the debt-to-GDP ratio to getting to as high as 86% by the end of the year 2023. No government under this Fourth Republic has ever suspended servicing its external debt, except this Akufo-Addo-Bawumia government.

Ghana lost access to capital markets
Ghana has effectively lost access to the capital markets as well as the international bond markets. By end of 3^rd-quarter 2021, Ghana’s fiscal vulnerability was evident to the market, this eventually resulted in a loss of market access largely consistent with the country’s struggle to manage its public debt since independence. In all of Ghana’s programme engagements with the International Monetary Fund (IMF) debt unsustainability has been recurring; reflecting a weak fiscal regime of expenditure rigidities and low domestic revenue mobilisation.

For example, Fitch assumes that Ghana will be unable to issue on international capital markets in 2022 and prospects for doing so in 2023 were uncertain. Ghana’s international reserve position has become highly reliant on annual Eurobond issuance since 2017. Moreover, as of July 2021, non-resident investors held just below 20% (USD5.8 billion) of Ghana’s outstanding domestic government debt. While the maturity of these holdings is long-term, an outflow then put additional downward pressure on Ghana’s reserves. Ghana has never lost access to the capital market until this Akufo-Addo-Bawumia government were voted into office.

Debt Restructuring:
As a result of the economic mismanagement, wanton corruption and excessive borrowing, the country’s debt became completely unsustainable, the Ministry of Finance on 5th December 2022 invited holders of 60 old domestic debts to exchange GH¢137.3billion (US$14.3 billion) domestic bonds and notes, including the Energy Sector Levy Act (E.S.L.A) (which the NPP called a nuisance tax and promised to abolish) and Daakye Bonds, for a package of twelve new eligible domestic bonds. Under the debt swap or exchange announced on 5th December 2022, local holders including domestic banks, Bank of Ghana, firms and institutions, retail and individuals, insurance companies, foreign investors, Rural and Community Banks and SSNIT were to exchange GH¢137.3billion (US$14.3) worth of 60 eligible domestic bonds for twelve new eligible bonds maturing between 2027 to 2038.

The debt exchange programme would affect local banks, Bank of Ghana, firms and institutions, foreign investors, insurance companies, pension funds, rural and community banks and SSNIT but exclude retail and individual bondholders.

Black Stars Playing at a Neutral Ground:
For the first time in the history of this country, the Confederation of African Football (CAF) has withdrawn its approval for the Baba Yara Stadium in Kumasi due to technical infractions, including an unsuitable playing field. The decision was made after observations made by the continent’s football body during the recent Africa Cup of Nations qualifying match between Ghana and Angola.

A letter received by the Ghana Football Association indicated that CAF had identified several issues, including a playing field that was deemed unsuitable for hosting competitive matches. It expressed dissatisfaction with the state of the stadium, citing the need for Ghana to invest in upgrading the facility to meet international standards. This is an indictment on the government, the Ministry of Youth and Sports, the Ghana Football Association and the National Sports Authority. For the first time ever, Ghana will be compelled to play a competitive match in a neutral ground, due to lack of a suitable venue in the country.

The Killing of Eight in the 2020 General Elections:

During and immediately after the 2020 general elections, a total of eight unarmed innocent Ghanaians were needlessly killed by the security services in cold blood in the Techiman South Constituency under the leadership of President Nana Addo-Dankwa Akufo-Addo and Dr. Mahamudu Bawumia as the president and vice respectively.

The eight lost their lives tragically, from gun shots, allegedly fired by military personnel who were supposed to protect and defend them. The incident, which occurred four years ago, continues to cast a long shadow over the electoral landscape and continue to be an indelible blot on the president’s image for generations to come. Unfortunately, president Akufo-Addo and his vice are yet to break their silence and address the nation on this painful episode.

The fact that the NPP think they can or should win this elections after all these shameful legacies and after moving our National Debt Stock from GHC122 billion to GHC742 billion, the cedi to dollar from GHC4 to GHC16, unemployment from 7% to 14%, inflation from 15% to 54% and back to 24%, interest rate from 25% to 37% shows that, they clearly don't respect Ghanaians, they think we are unintelligent and gullible.