Legal Green Association evaluations first 12 months of Mahama organization, cites financial aid and governance reforms – Life Pulse Daily

Introduction: A New Chapter in Ghanaian Governance

As Ghana marks the first anniversary of President John Dramani Mahama’s return to office, a comprehensive evaluation of his administration’s performance has emerged from one of the country’s leading policy organizations. The Legal Green Association (LGA), a prominent center-left think tank, has released a detailed assessment of the first 12 months of the Mahama administration, providing valuable insights into the government’s achievements and policy direction. This evaluation comes at a critical moment as Ghana continues its journey toward economic recovery and democratic consolidation.

The LGA’s assessment, signed by Festus Matey and Evans Mawunyo Tsikata, represents more than just an organizational opinion—it serves as a comprehensive analysis of how the National Democratic Congress (NDC) government has implemented its social democratic vision during its initial year. The report highlights significant reforms in public expenditure management, tax policy adjustments, and infrastructure development that have collectively shaped the administration’s approach to governance.

This evaluation is particularly significant given the challenging economic context in which the Mahama administration operates. With Ghana facing persistent economic headwinds, the government’s ability to implement meaningful reforms while maintaining public confidence has been tested. The LGA’s analysis provides crucial insights into the effectiveness of these governance strategies and their impact on ordinary Ghanaian citizens.

Key Points: Major Achievements and Policy Reforms

Public Expenditure Management and Cost Reduction

One of the most significant achievements highlighted in the LGA assessment is the government’s decisive action in reducing public expenditure. The administration implemented a comprehensive review of ministerial appointments, successfully reducing the number of ministers from 120 to 60. This substantial reduction is projected to save the state approximately GH¢300 million over three years, representing a significant step toward fiscal responsibility.

The report also emphasizes other cost-cutting measures that demonstrate the administration’s commitment to austerity. These include President Mahama’s directive prohibiting ministers from traveling first-class on official duties and the cancellation of fuel allowances for political appointees. These measures, while seemingly administrative in nature, send a powerful message about the government’s willingness to share in the economic sacrifices being made by ordinary citizens.

Tax Reforms and Economic Relief

The LGA assessment highlights several key tax reforms that have provided substantial economic relief to Ghanaian citizens and businesses. The government successfully repealed several controversial taxes, including:

• The digital levy
• The betting tax
• The emissions levy
• The COVID-19 Health Recovery Levy

Collectively, these tax eliminations have removed billions of cedis from the financial burden previously borne by Ghanaians. Additionally, the assessment notes that value-added tax reforms implemented by the Ghana Revenue Authority have resulted in GH¢6.5 billion being returned to households through reduced prices, further demonstrating the government’s commitment to economic relief.

Energy and Fuel Price Stabilization

The administration’s efforts to stabilize fuel prices represent another significant achievement. According to the LGA assessment, petrol prices declined from approximately GH¢15.45 per liter in January 2025 to GH¢10.99 by January 2026. This reduction in fuel costs has had a cascading effect on transportation and production costs throughout the economy, providing relief to businesses and consumers alike.

Monetary Policy and Credit Accessibility

The assessment also highlights improvements in the cost of credit, with Bank of Ghana data showing a reduction in average lending rates from over 30% in December 2024 to approximately 20% by the end of 2025. Some banks have reportedly offered private loans at even lower rates, indicating a more favorable lending environment for businesses and individuals seeking credit.

Background: The Return of Social Democratic Governance

The LGA assessment positions the Mahama administration’s first year as a deliberate return to social democratic principles, contrasting it with what the organization characterizes as previous approaches to governance. According to the report, the NDC’s return to power represents a “renewed commitment to social and economic equality, accountability, and inclusive national policy.”

This philosophical positioning is crucial for understanding the administration’s policy choices. The assessment suggests that the government’s focus on public expenditure reduction, tax relief, and social interventions reflects a coherent ideological framework centered on equitable development and social justice. The emphasis on maintaining and expanding social programs like the Free Senior High School policy, despite fiscal challenges, underscores this commitment to social democratic values.

The background section of the assessment also contextualizes these reforms within Ghana’s broader economic challenges. The country has faced persistent economic difficulties, including high inflation, currency depreciation, and debt sustainability concerns. Against this backdrop, the administration’s reforms represent an attempt to balance fiscal responsibility with social protection, a challenging but essential task for any government committed to equitable development.

Analysis: Evaluating Policy Effectiveness and Impact

Economic Indicators and Macroeconomic Stability

The LGA assessment highlights several positive economic indicators that suggest the administration’s policies are contributing to macroeconomic stabilization. Most notably, inflation has declined significantly, falling to 5.4% in December 2025 compared to 23.8% a year earlier. This dramatic reduction in inflation represents a major achievement, as high inflation had been one of the most pressing economic challenges facing ordinary Ghanaians.

The assessment also praises the establishment of GoldBod, an initiative that centralizes gold purchases and exports. According to the report, this initiative generated more than GH¢960 million in modernization efforts in 2025 and contributed to foreign currency inflows and cedi stability. Additionally, the resumption of crude oil refining at the Tema Oil Refinery is cited as a significant step toward strengthening energy security and revitalizing the downstream petroleum sector.

Infrastructure Development and Investment

The administration’s infrastructure agenda receives significant attention in the LGA assessment. The report references the launch of the Ghana Infrastructure Plan in October 2025, under which GH¢13.9 billion has already been allocated to the government’s “Big Push.” An additional GH¢30 billion is planned for 2026 across sectors including health, education, agriculture, and sports.

This substantial infrastructure investment represents a strategic approach to economic development, aiming to create jobs, improve public services, and lay the foundation for sustained economic growth. The assessment suggests that these investments are not merely about physical infrastructure but are also about building human capital and improving the quality of life for Ghanaian citizens.

Social Interventions and Human Development

The LGA assessment highlights several social interventions that demonstrate the administration’s commitment to human development and social protection. The maintenance and expansion of the Free Senior High School policy, with an allocation of GH¢3.5 billion in 2025, is particularly noteworthy. This policy has had a transformative impact on educational access in Ghana and represents a significant investment in the country’s human capital.

The “No Fees Stress” policy, which eliminates educational fees for first-year tertiary students and provides additional support for continuing students and persons with disabilities, has benefited more than 152,000 students by the end of 2025. This policy addresses one of the major barriers to higher education in Ghana and represents a significant step toward educational equity.

The establishment of the MahamaCare Trust Fund to strengthen the treatment of non-communicable diseases not fully covered by the National Health Insurance Scheme and the launch of a national free sanitary pad distribution program are also highlighted as important social interventions. These programs address critical gaps in healthcare and promote gender equality in education.

Practical Advice: Lessons for Governance and Policy Implementation

Policy Coherence and Long-term Vision

The LGA assessment provides valuable lessons for effective governance and policy implementation. One of the key takeaways is the importance of policy coherence and a long-term vision. The administration’s ability to implement reforms across multiple sectors—public expenditure, taxation, infrastructure, and social services—suggests a coordinated approach to governance that prioritizes both economic stability and social development.

Communication and Public Engagement

The assessment also highlights the importance of effective communication and public engagement. By implementing visible cost-cutting measures, such as reducing the number of ministers and prohibiting first-class travel, the government has demonstrated its commitment to sharing the burden of economic challenges with citizens. This approach helps build public confidence and support for more difficult reforms.

Balancing Austerity with Social Protection

Perhaps the most important lesson from the administration’s first year is the ability to balance fiscal responsibility with social protection. The government has successfully implemented cost-cutting measures while maintaining and even expanding critical social programs. This balanced approach recognizes that economic stability and social development are not mutually exclusive but are, in fact, mutually reinforcing.

Institutional Strengthening and Capacity Building

The assessment also underscores the importance of institutional strengthening and capacity building. Initiatives like GoldBod represent not just economic interventions but also efforts to strengthen state capacity and improve the efficiency of public institutions. This focus on institutional development is crucial for sustainable governance and long-term development.

FAQ: Understanding the Mahama Administration’s First Year

What were the main economic challenges facing Ghana when the Mahama administration took office?

Ghana faced several significant economic challenges, including high inflation (23.8% a year before the assessment), currency depreciation, high public debt, and limited foreign exchange reserves. The country was also dealing with the economic fallout from global disruptions and needed to restore macroeconomic stability while maintaining essential social services.

How did the administration reduce public expenditure without affecting essential services?

The administration implemented several strategic measures to reduce public expenditure, including reducing the number of ministers from 120 to 60, eliminating fuel allowances for political appointees, and prohibiting first-class travel for ministers on official duties. These measures focused on reducing administrative costs while protecting essential public services and social programs.

What impact did tax reforms have on ordinary Ghanaians?

The tax reforms implemented by the administration had a significant positive impact on ordinary Ghanaians. The repeal of several taxes, including the digital levy, betting tax, emissions levy, and COVID-19 Health Recovery Levy, removed billions of cedis from the financial burden previously borne by citizens. Additionally, value-added tax reforms resulted in GH¢6.5 billion being returned to households through reduced prices.

How did the administration address the issue of inflation?

The administration successfully reduced inflation from 23.8% to 5.4% through a combination of monetary policy coordination, fiscal discipline, and supply-side interventions. The reduction in fuel prices and improvements in the business environment also contributed to this significant achievement.

What role did infrastructure investment play in the administration’s economic strategy?

Infrastructure investment was a central component of the administration’s economic strategy. The Ghana Infrastructure Plan, with GH¢13.9 billion already allocated and an additional GH¢30 billion planned for 2026, aims to create jobs, improve public services, and lay the foundation for sustained economic growth. Investments in health, education, agriculture, and sports infrastructure are designed to address both immediate needs and long-term development goals.

Conclusion: A Promising Foundation for the Future

The Legal Green Association’s assessment of the first year of the Mahama administration provides a comprehensive and largely positive evaluation of the government’s performance. The report highlights significant achievements in economic stabilization, public expenditure management, tax reform, and social development. These accomplishments demonstrate the administration’s ability to implement a coherent policy agenda while maintaining public confidence and support.

The assessment concludes that Ghana is showing signs of “good governance, stability, and renewed confidence” under social democratic leadership. This positive evaluation is based not just on economic indicators but also on the government’s commitment to social justice, accountability, and inclusive development.

However, the assessment also serves as a reminder of the challenges that lie ahead. While the first year has laid a solid foundation, the administration faces the ongoing task of sustaining economic recovery, deepening structural reforms, and delivering tangible improvements in the lives of ordinary Ghanaians. The LGA’s call for citizens to support good governance, demand accountability, and prioritize national interest over partisan considerations underscores the importance of collective responsibility in this process.

As the Mahama administration moves into its second year, the LGA assessment provides both a benchmark for measuring progress and a framework for continued policy development. The emphasis on balancing fiscal responsibility with social protection, strengthening institutions, and maintaining policy coherence offers valuable guidance for the challenges and opportunities that lie ahead.