The swearing-in of the next National Democratic Congress (NDC) government in January 2025 will mark the dawn of a new era in Ghanaian politics, one characterized by the promise of economic recovery and relief for millions of Ghanaians struggling under the weight of high living costs. The NDC’s 2024 manifesto, with its ambitious yet pragmatic policies, offers a blueprint for tackling the country’s immediate economic challenges while setting the stage for sustainable growth and job creation.
Focus on Reducing the Cost of Living
Central to the NDC’s economic policy is the prioritization of measures aimed at reducing the cost of living. Key proposals include targeted subsidies on essential goods and services, the introduction of affordable housing initiatives, and the expansion of social safety nets. These measures resonate with the struggles of everyday Ghanaians who face skyrocketing food prices, escalating utility costs, and stagnant wages.
One cornerstone initiative involves the reduction of Value Added Tax (VAT) on basic commodities. Research by the International Food Policy Research Institute (IFPRI) highlights that tax reductions on essential goods can significantly improve household purchasing power in developing economies. By alleviating the tax burden, the incoming NDC government can make life’s necessities more accessible, immediately easing financial pressures on families. For instance, the manifesto specifies a significant reduction in taxes on essential food items such as rice, cooking oil, maize, and fish, which collectively constitute a significant portion of household expenses.
The NDC also promises to restructure utility tariffs to align with household incomes, ensuring equitable access to electricity and water. By reducing tariffs for low-income households, the government aims to alleviate a major cost burden while improving access to essential services. For example, under the proposed “Utility Relief Program,” families earning below a certain threshold will receive a discount on electricity and water bills, a move anticipated to benefit over two million households nationwide.
Moreover, the manifesto’s emphasis on public housing projects promises to address the critical shortage of affordable accommodation. Drawing lessons from Singapore’s Housing Development Board model, which has successfully provided housing for over 80% of its population, the NDC aims to implement a similar program tailored to Ghana’s context. The manifesto outlines plans to construct 200,000 affordable housing units over the next four years, prioritizing urban centres with the highest housing deficits. This policy not only reduces housing costs but also stimulates employment in the construction sector, with an estimated 50,000 jobs expected to be created annually.
Creating Jobs and Revitalizing the Economy
Unemployment, particularly among the youth, remains a pressing challenge in Ghana. The NDC’s manifesto places job creation at the heart of its economic agenda, proposing an industrialization drive focused on agro-processing, renewable energy, and digital technology. These sectors are pivotal for their potential to create large-scale, sustainable employment opportunities.
The manifesto outlines a commitment to developing industrial parks and export processing zones to attract foreign investment and boost manufacturing. Evidence from Ethiopia’s industrial park strategy shows that such initiatives can generate thousands of jobs while enhancing export revenues. In replicating this model, the NDC aims to create a vibrant manufacturing ecosystem that supports local entrepreneurs and integrates Ghana into global supply chains. Specifically, considering that the “Accra North Industrial Park” which is scheduled for completion by 2026, is projected to employ over 15,000 workers and serve as a hub for textile and garment production, the NDC is keen on advancing Ghana’s industrialization drive by better implementing the outgoing NPP government’s “One District, One Factory” initiative, building on the successes and challenges of earlier industrialization policies introduced by previous administrations. While the original program laid a foundation for industrial growth, its execution was hindered by issues such as inadequate funding, low local participation, and limited alignment with district-specific resources. The NDC’s industrialization policy aims to address these gaps by prioritizing local resource utilization and offering enhanced financing mechanisms to ensure project sustainability aiming to enhance its effectiveness through better financing mechanisms, stronger local resource integration, and a focus on value-added production.
Through emphasizing local resource utilization and improved financing mechanisms, this program seeks to increase productivity and empower communities to become self-sufficient. For example, the manifesto highlights plans to establish mini processing factories in districts or regions with high cassava production, as well as areas with agro-processing potential in cashew, fruit juice, and tomatoes, leveraging both local labour and raw materials to create value-added products for export.
Additionally, the government’s focus on renewable energy aligns with global trends toward green economies. The International Renewable Energy Agency (IRENA) estimates that the transition to renewable energy could create over 42 million jobs worldwide by 2050. Ghana’s abundant solar and wind resources position it well to become a leader in this sector, creating jobs while addressing energy insecurity. Notably, the NDC plans to establish solar farms that will generate renewable electricity to power small and medium scale industries, which could employ 10,000 workers during the construction phase.
The NDC’s manifesto also highlights the creation of a National Skills Development Fund aimed at equipping the youth with the technical skills necessary for emerging industries. This initiative is crucial for bridging the skills gap and ensuring that the workforce is prepared for the demands of a modern economy. For example, the manifesto details a partnership with technical universities to offer certification programs in emerging technologies such as robotics, software development, and renewable energy installation.
Policy Benefits and Long-Term Vision
The implementation of these policies promises immediate and far-reaching benefits. Reductions in the cost of living will improve household savings, which can, in turn, fuel domestic consumption and economic growth. Job creation initiatives will not only reduce unemployment but also enhance skill development and economic diversification. Moreover, by investing in renewable energy and sustainable industries, the next NDC government will be laying the groundwork for long-term economic resilience and environmental sustainability.
In addition to these measures, the manifesto’s emphasis on good governance and anti-corruption is critical. Transparent allocation of resources and efficient implementation of policies are essential to achieving these goals. Studies by the World Bank underscore that countries with robust governance frameworks tend to attract higher levels of foreign direct investment and experience more stable economic growth.
Furthermore, the NDC has pledged to digitize public services, improve efficiency, and reduce bureaucratic bottlenecks. By leveraging technology, the incoming government aims to enhance service delivery while curbing opportunities for corruption. The proposed “e-Governance Initiative” includes plans to digitize land registration, business licensing, and tax filing processes, ensuring faster and more transparent interactions with government agencies.
The incoming NDC government’s policy proposals offer a lifeline to Ghanaians burdened by economic hardship. Tackling the cost of living and creating new employment opportunities will enable the next NDC government to deliver tangible benefits to citizens in the short term while positioning Ghana for sustained prosperity. However, success will depend on the swift and transparent execution of these plans, coupled with continuous engagement with stakeholders and the public.
As the NDC prepares to take power to embark on this journey, Ghanaians have every reason to be hopeful. With sound policies and a commitment to inclusivity and accountability, the new government will be better-positioned to alleviate immediate economic pressures and fulfil its broader vision of shared growth for all and national development.
Written by:
Prince Kassim Senaya Alubankudi, MBA
Policy Analyst at UPDI Africa & International Business Consultant
