Ghana Election 2024: Challenges and Opportunities for Economy, Security, and Governance

Ghana, which stands out as a stable democratic model in Africa, held a critical election on December 7, 2024. This election resulted in a decisive victory for John Dramani Mahama, leader of the opposition National Democratic Congress (NDC), thereby reaffirming the nation's political maturity and its tradition of peaceful power transitions. This outcome reinforces Ghana's reputation as a paragon of democracy in a region often characterised by political instability and military coups. However, the new government faces formidable obstacles that will determine Ghana's future. Deep-rooted economic problems, such as rising unemployment, corruption, and illegal mining, are further exacerbated by IMF austerity measures. Simultaneously, governmental problems and emerging security threats pose risks to the country's stability. The Mahama administration's ability to address these overlapping challenges will determine not only Ghana's domestic progress but also its role as a democratic model in the region and as an influential actor in the international arena.

Election Overview
The December 7 elections in Ghana revealed a rivalry between two dominant parties that have alternated in power for decades. The ruling New Patriotic Party (NPP) was represented by Mahamudu Bawumia, while the opposition National Democratic Congress (NDC) was led by John Dramani Mahama, who was running for president for the second time. The economy took centre stage in the elections, reflecting deep public frustration with rising unemployment, inflation, and economic instability. Both candidates placed the economy at the heart of their campaigns and proposed different policy solutions.

Bawumia advocated for private sector-led economic growth to revitalise the economy, while Mahama prioritised renegotiating IMF agreements to stabilise the economy and provide relief to struggling citizens. Corruption, illegal mining, and widespread governance issues were also among the other significant issues highlighted during the elections. In this context, Mahama's message resonated more strongly with voters dissatisfied with the economic management of the ruling party. Mahama secured a decisive victory with 56.55% of the vote, while the NPP’s candidate, Bawumia, received 41.61%. With just minor hiccups in a few places, the  election process went mostly  smoothly and in a controlled manner.

This peaceful transition of power reaffirmed Ghana’s reputation as a symbol of political stability and a mature democracy in the West African region. Particularly during a period when much of the region has been shaken by political instability and military coups, Ghana's success serves as a significant example.

Current Challenges

Ghana is facing the most severe financial crisis it has experienced in decades. Rapidly rising inflation, a depreciating cedi, and austerity policies implemented under the IMF program are causing widespread frustration. As of 2023, the youth unemployment rate stands at 14.7%, and discussions about creating new jobs remain one of the most significant public agenda items.

Additionally, illegal small-scale mining exacerbates economic and environmental problems; it fuels corruption, destroys agricultural land, and deprives the state of significant revenue sources. These economic issues have deepened voter frustration, reducing voter turnout from 78.89% in 2020 to 61% in 2024. This decline was a decisive factor in the opposition’s victory. John Dramani Mahama’s promises of economic reforms and his pledge to renegotiate the IMF bailout package were strongly supported by a public seeking change.

Although Mahama does not plan to abandon the $3 billion IMF bailout package, he has pledged to review the agreement, reduce wasteful government spending, and improve the energy sector. However, deep-rooted economic challenges continue to erode trust in political institutions. Persistent corruption, lack of transparency, and the previous government’s failures have further deepened public dissatisfaction. Even Ghana’s peace, which symbolises stability in West Africa, is under increasing pressure. Border tensions and terrorist threats stemming from neighbouring countries like the Sahel and Burkina Faso are heightening security risks.

Allegedly, militant groups are using northern Ghana as a logistical and medical base. The activities of organised crime, militia groups, and separatist movements, coupled with land and resource disputes arising from illegal small-scale mining, and further complicate security problems. These factors clearly highlight the paradox facing the Mahama government: economic recovery is vital, but it must not come at the expense of political stability and security. While the opposition’s victory reflects a demand for change, maintaining this delicate balance between security, the economy, and political stability will determine the Mahama government’s success. Failure to implement economic reforms or address security threats risks reversing Ghana’s progress and further eroding confidence in political leadership.

Regional and International Implications
The December 7, 2024, elections in Ghana, which resulted in an opposition victory, reflect global trends and emphasise the country’s strategic importance. The election outcome highlights the wave of dissatisfaction in developing countries driven by poor economic management, rising inequality, and post-pandemic challenges. Ghana’s economic struggles, marked by high debt, inflation, and issues exacerbated by IMF austerity policies, align with calls for accountability and change across Africa. Nonetheless, Ghana stands out for its democratic resilience. This resilience strengthens its leadership role within ECOWAS and enhances its value in the eyes of global partners such as the United States, China, and Türkiye. However, ECOWAS’s recent decision to permit the military-led governments of Mali, Burkina Faso, and Niger to exit the bloc signals challenges for regional cooperation.

The withdrawal of Mali and Burkina Faso from ECOWAS could negatively impact strategic infrastructure projects such as the Dakhla Port project, supported by Morocco and Israel, and the Accra Port corridor, managed in partnership with Türkiye’s YILPORT. Both projects depend on routes passing through Mali and Burkina Faso, meaning their departure from ECOWAS could pose serious coordination and security issues. On the other hand, the emergence of the Alliance of Sahel States (ASS) as an alternative bloc faces uncertainties regarding its ability to manage such large-scale projects due to limited resources and dependence on external actors like Russia.

Preserving Ghana’s democratic reputation is critical for attracting foreign direct investment, developing trade relations, and maintaining sustainable engagement with international institutions. Whether the new government will strengthen ties with Western powers or build stronger relationships with China, Russia, and regional blocs will be a significant question during Mahama’s term. This decision will directly affect Ghana’s ability to manage economic recovery while safeguarding political stability and security.

The United States continues to be a reliable partner for Ghana, especially in regional security and trade. Despite leadership changes, relations remain resilient. However, the expectation for Ghana to align more closely with Western priorities poses challenges in balancing interests in a landscape marked by intensified U.S.-China competition.

Türkiye, meanwhile, stands out as an effective economic and security partner for Ghana through energy and infrastructure projects. With trade volume exceeding $771 million, initiatives like YILPORT’s Takoradi Port partnership underscore Ghana’s rising importance as a regional trade hub. Additionally, security cooperation in counterterrorism and capacity building has deepened Türkiye-Ghana relations.

China remains Ghana’s largest economic partner, with trade volume reaching $6 billion in the first quarter of 2024. However, China’s collateralised loans risk undermining Ghana’s economic sovereignty. Ghana currently has eight loans secured by resources such as cocoa, bauxite, and oil. Failure to meet its debt obligations could result in the loss of significant mineral assets. China’s short-term incentives are evolving into a strategy aligned with its long-term geopolitical objectives. The opposition’s victory raises critical questions about Ghana’s foreign policy trajectory. The new government must balance relations with China, the United States, and Türkiye while reducing its dependence on resource-backed loans. Investing in technology, renewable energy, and education while promoting transparent partnerships will enable Ghana to leverage global competition and achieve sustainable growth.

Conclusion
In conclusion, while Ghana's 2024 elections have inspired the region by reaffirming the country's democratic maturity and commitment to peaceful transitions of power, the Mahama government faces significant economic, security, and governance challenges that overshadow this success. Addressing economic recovery, youth unemployment, rising inflation, and the pressures of IMF austerity policies will require careful allocation of resources to mitigate political instability and security threats. Ghana's political stability is also still seriously threatened by problems like corruption, illicit mining, and cross-border security difficulties. Furthermore, these challenges are compounded by the complexities of regional cooperation, particularly with the departure of countries from ECOWAS and the jeopardization of major infrastructure projects. The Mahama government's success will ultimately hinge on its ability to devise strategies that integrate economic recovery with security and political stability priorities, promote transparent governance, and maintain balanced international partnerships.