John Mahama’s First Year: Sector Stabilization and Key Achievements

Introduction

The John Dramani Mahama administration’s first year in office has been marked by efforts to stabilize major economic sectors following a period of financial and infrastructural volatility. In a roundtable dialogue titled “John Mahama 2.0: Thematic Assessment of Year One,” senior partner at AB & David Africa, David Ofosu-Dorte, evaluated the government’s performance, emphasizing the stabilization of key sectors and the prevention of further decline. This article explores Ofosu-Dorte’s insights, analyzes sectoral developments, and provides practical advice for future economic growth.

Key Points

Background

Pre-Mahama Challenges

Prior to assuming office, Ghana faced significant economic challenges, including a debt sustainability crisis, infrastructure decay, and chronic power shortages. The Debt Dynamics Evaluation Program (DDEP) and International Monetary Fund (IMF) negotiations had exacerbated public and institutional discontent, leading to widespread uncertainty.

Immediate Priorities

Upon taking office, the Mahama administration’s primary objective was to halt the deterioration of key economic sectors and stabilize the overall market system. This required tackling longstanding debt issues, improving infrastructure, and restoring reliability to essential services such as energy.

Analysis

Economic Stabilization and Debt Management

Ofosu-Dorte highlighted the administration’s swift response to stabilize the economic climate following the debt crisis and IMF negotiations. The debt change programme and broader fiscal reforms were crucial in arresting further decline.

“When moving from a DDEP, IMF situation, and surrounding chaos, the first priority was to stop deterioration,” Ofosu-Dorte stated. “Any good manager knows that in such situations, halting further decline is the primary objective.”

Infrastructure Sector Progress

The infrastructure sector, particularly roads, faced significant deterioration prior to the administration’s efforts. Ofosu-Dorte praised the measures taken to prevent further decay.

“The road sector exemplifies this; if deterioration was ongoing, what steps were taken to halt it? Although many projects have been announced, this first step of stopping deterioration is essential,” he explained.

Continued investment and maintenance are necessary to ensure infrastructure improvements are sustainable and contribute to long-term economic growth.

Power Sector Reforms

The power sector, long plagued by chronic outages (dumsor) and arrears, saw notable progress under the administration.

Ofosu-Dorte commended the federal government’s efforts to tackle the longstanding power enterprise development debt, which had accumulated since around 2007. He noted that GH¢1.4 billion in arrears had been paid by December 31, 2025, and that payments were being made ahead of schedule.

“Enhanced transparency and improved cash-flow models in the Electricity Company of Ghana (ECG) were crucial in addressing this issue. By clarifying revenue streams and payment mechanisms, the administration made a significant dent in stopping the deterioration of the power sector,” he added.

Education Sector Developments

The government’s commitment to addressing housing shortages at the University of Ghana was highlighted as a significant step in curbing deterioration in the education sector.

“The promise of a 10,000-student hostel, despite the existing shortage of about 40,000 beds, represents a major effort to stabilize the situation. Even though this goal has not been fully achieved yet, it’s a positive step forward,” Ofosu-Dorte commented.

Addressing such shortages is essential for attracting and retaining students, thereby enhancing the quality of education and research output.

Practical Advice

Continue Stabilization Efforts

Given the administration’s progress, Ofosu-Dorte emphasized the need to maintain and build upon these efforts to ensure sustained economic growth.

• Continuously monitor and maintain infrastructure projects
• Prioritize debt management and transparent financial practices
• Expand efforts in education and housing to address remaining gaps
• Encourage private sector participation in infrastructure and energy development

Strengthen Transparency and Accountability

Ofosu-Dorte reiterated the importance of enhancing transparency and accountability in government operations, particularly in sectors like energy and education.

“Transparency is not just a nice-to-have; it’s essential for building public trust and ensuring effective governance,” he stated.

Long-Term Planning and Investment

To achieve sustainable growth, the government must focus on long-term planning and investment in key sectors.

• Develop and implement strategic plans for infrastructure, energy, and education
• Attract both domestic and foreign investment in high-impact sectors
• Invest in research and development to foster innovation and competitiveness

FAQ

Conclusion

The John Dramani Mahama administration’s first year in office has been characterized by a focus on stabilizing key economic sectors and halting further decline. Ofosu-Dorte’s assessment highlights significant progress in debt management, infrastructure stabilization, power sector reforms, and education development. However, sustained efforts and long-term planning are necessary to ensure continued economic growth and stability. By maintaining transparency, fostering investment, and addressing remaining challenges, the government can build a stronger, more resilient economy for the future.

Sources

1. Life Pulse Daily, “Fresh News: Mahama executive has fascinated with stabilising key sectors in first 12 months – Ofosu-Dorte,” 2026-01-14
2. John Dramani Mahama 2.0: Thematic Assessment of Year One, AB & David Africa
3. Electricity Company of Ghana (ECG) Annual Reports
4. University of Ghana Press Releases