President John Mahama travelled to Asia to attract foreign investors and explore new trade opportunities for Ghana. He hopes that foreign investments and expertise will help boost the Ghanaian economy. And we hear he is promising government programmes to create “special favours” to those who choose to come.
John Mahama is back, telling a vulnerable public that he secured a $ 1 billion investment in certain Ghanaian projects. It promises over 5,000 jobs, according to his foreign minister. How much of Ghanaian sovereignty did Mahama auction to convince his Asian hosts to commit that money to a weakened Ghanaian economy?
It’s also very ironic that while he is busy attracting foreign investors, his supporters are busy damaging local businesses. Mahama forgets that foreign investors observe how a government treats its local investors and the business climate. Nothing is free. The truth is: every dollar must come from somewhere. Usually, it is from taxpayers — or worse, borrowed. Opportunity costs are real, but they are often ignored by Ghanaian politicians.
Ghana’s economy is not liberalized. Its lack of productivity, its inability to build great domestic companies, and its lack of free competition that characterizes free-market capitalism are still nowhere to be found in the Ghanaian economy, and private property continues to exist in name only. All the power lies in the Mahama regime, and no one can counter it. The inequalities and partisan unfairness that disfigure our society deepen.
We hope someone would whisper into his ears that his Asian hosts know Ghana’s political environment is volatile and fiercely divided, making it unsafe for long-term investment. People dislike uncertainty, and clarity is essential. The ongoing policy chaos discourages serious investors. Our neglect of due process and democratic principles, combined with efforts to rig the system in favour of one party, makes the country unpredictable and unsafe for investors.
We acknowledge that Foreign Direct Investment (FDI) plays a crucial role in economic development by providing capital, technology, and access to new markets. It can foster job creation, boost competitiveness, and drive overall economic growth.
However, growth and development are not just about attracting Foreign Direct Investment (FDI); they also involve mobilizing local capital and entrepreneurs to invest without significant roadblocks for the evolution of a vibrant domestic private sector. Like ordinary people, entrepreneurs make choices based on incentives, constraints, and values.
We emphasize again that current political instability, the creation of cartels and syndicates, excessive politicization within the private sector, limited access to finance, and other regulations that assume entrepreneurs—both domestic and foreign—will not change their behaviour when conditions are not favourable, all tend to have negative effects.
It is institutions that enable economies to function. Strong property rights and a reliable legal system allow people to build wealth and markets to operate smoothly. The lack of FDI and neglect of the domestic private sector are not isolated issues but symptoms of a broader problem of lawlessness fostered by ‘progressive’ policies.
Ghanaians see the treatment of successful local investors daily, as do foreign investors. Foreign investors, in particular, do not require complicated invitations from politicians willing to sacrifice profit to serve partisan interests. What they want is safety and security from a justice system that enforces contracts, holds business partners accountable, and universally protects property rights.
Anyway, the top twenty developed countries in the world did not achieve prosperity through central planning. What sets them apart is their willingness to give citizens choices, protect private property, make free enterprise attractive and profitable, encourage personal responsibility, and respect people’s rights to cooperate on any voluntary projects they choose, regardless of tribe, kingship, or political party colors.
That model still works — if we dare to adopt it. We should start thinking about an economy that operates largely without constant oversight and interference from politicians. It is a mistake for Mahama to believe that his calls will attract foreign investment into a mercantilist Ghanaian economy, where the president and his ministers control the economy and decide who wins and who loses.
In recent years, multi-party democracy has given way to a cyclical, brutal, and partisan capitalism, with a small, state-connected minority controlling much of the nation’s wealth. We need to shift the focus toward recovery and development, but changing the mindset is essential — not only within the NDC and across political lines but also among the electorate, who surprisingly tend to favour political patronage and mismanagement that serve sectional interests.
The destiny of this country lies in the hands of its people, who will shape it as they see fit. It is Ghanaian citizens who will determine their future, not Asians, North Americans, or Europeans. The main drama of Ghana unfolds in Ghanaian communities, in businesses, homes, and within people’s hearts and minds.
If we want Ghanaians to prosper, Mahama must stay home and get back to the basics of economics.
By Kwadwo Afari
The views expressed in this article are the author’s own and do not necessarily reflect The Chronicle’s stance.
