CDD Reports Tangible Fall in Cost of Living During First Year of Mahama Administration

Introduction

A recent assessment by the Centre for Democratic Development (CDD-Ghana) reveals a significant improvement in the cost of living for many Ghanaians during the first year of President John Dramani Mahama’s administration. The report attributes this positive trend to macroeconomic stability, currency appreciation, and declining fuel prices, marking a notable shift in economic conditions across the country.

Key Points

Background

The CDD-Ghana assessment provides a comprehensive overview of economic conditions during President Mahama’s first year in office. The report examines multiple economic indicators and policy changes implemented by the administration, offering insights into how these measures have impacted ordinary Ghanaians’ daily lives. The analysis covers both macroeconomic achievements and ongoing challenges that require attention.

Analysis

The CDD report identifies several key factors contributing to the improved cost of living situation. First, the appreciation of the Ghanaian Cedi has stabilized the prices of imported goods, including essential medicines and raw materials. This currency strength has provided relief to consumers who previously faced volatile prices for imported products.

Second, the administration’s fiscal consolidation efforts have yielded significant results. By eliminating wasteful spending and terminating underperforming programs, the government achieved a remarkable reduction in the national deficit. This fiscal discipline has created space for direct relief to citizens without imposing additional tax burdens.

The report particularly highlights the impact of fuel price reductions on transportation costs. The 4-8% decrease in fuel prices at the pump translated into a substantial 15% reduction in commercial transport fares. This change has had a direct and immediate effect on daily commuting costs and the transportation of goods throughout the country.

Food inflation represents one of the most dramatic improvements noted in the report. The decline from 28.3% to 4.9% over the course of a year represents a substantial easing of pressure on household budgets, particularly for lower-income families who spend a larger proportion of their income on food.

However, the assessment also identifies persistent challenges. Regional disparities remain significant, with northern regions experiencing slower price reductions due to logistical bottlenecks. Poor transportation and communication infrastructure in these areas continues to limit the benefits of national economic improvements from reaching all citizens equally.

Practical Advice

For consumers looking to maximize the benefits of these economic improvements, the report suggests several strategies. In urban areas where price reductions have been most pronounced, households should review their budgets to identify areas where savings can be redirected to other priorities. The elimination of certain taxes means that disposable income has increased, providing opportunities for savings or investment.

Small business owners, particularly those benefiting from the raised VAT threshold, should consider reinvesting their tax savings into business expansion or modernization. The report notes that the removal of “nuisance” taxes like the E-Levy and Betting Tax has particularly benefited small enterprises and entrepreneurs.

For residents in northern regions still experiencing slower price reductions, the report recommends engaging with local authorities to advocate for improved infrastructure development. Enhanced transportation and communication networks could help bridge the regional disparity gap.

FAQ

Conclusion

The CDD-Ghana assessment presents a largely positive picture of economic conditions during President Mahama’s first year in office, with tangible improvements in the cost of living for many Ghanaians. The combination of macroeconomic stability, currency appreciation, declining fuel prices, and strategic fiscal policies has created meaningful relief for consumers across the country.

However, the report also serves as a reminder that challenges remain, particularly regarding regional disparities and the need for sustainable revenue generation. The administration’s success in stabilizing the economy without imposing additional tax burdens on average citizens represents a significant achievement, but long-term sustainability will require continued attention to revenue mobilization and infrastructure development.

As Ghana moves forward, the lessons from this first-year assessment will be crucial in shaping policies that ensure economic benefits reach all citizens while maintaining fiscal responsibility and sustainable growth.

Sources

– Centre for Democratic Development (CDD-Ghana) – One-Year Assessment of the Mahama Administration
– Life Pulse Daily – “CDD reports tangible fall in cost of living during first year of Mahama administration”
– Published on February 19, 2026

Additional Notes

The assessment emphasizes that while market signals have improved disposable incomes, particularly in major cities like Accra and Kumasi, the government must address regional disparities and revenue mobilization challenges to ensure sustainable economic progress. The report suggests that AI-driven tax compliance measures could help improve revenue collection while compensating for the loss of funds from abolished nuisance taxes.