As Ghana inaugurates John Dramani Mahama as the sixth president under the Fourth Republic, the nation embarks on a journey laden with hope and immense challenges. This transition is more than a political shift; it underscores the renewal of Ghana’s social contract and highlights the collective aspiration for governance rooted in accountability, equity, and transformational leadership. The Mahama administration must now chart a progressive path for Ghana and deliver meaningful change to its citizens.

The Expectations of the Citizenry

Ghanaians hold high expectations for President Mahama and his administration. The public demands solutions to entrenched issues such as youth unemployment, infrastructure deficits, and economic inequalities. Moreover, there is a strong call for governance that prioritizes transparency, combats corruption, and ensures equitable access to quality public services. Addressing perceptions of injustice and marginalization will also be critical in fostering national unity.

The Current Economic Situation

Ghana’s economy is facing significant headwinds. In 2024, inflation surged to a concerning 35%, and the Ghanaian cedi experienced a steep depreciation of 15% against major foreign currencies over the past year. Public debt has ballooned to 104% of GDP, raising alarms about fiscal sustainability. While primary exports such as gold, cocoa, and oil generated $10 billion in revenue in 2023, the benefits of these industries have yet to permeate the broader economy, leaving many Ghanaians struggling with the rising cost of living.

Additionally, agriculture – which employs over 40% of the population – remains hindered by low productivity, outdated practices, and limited market access. These challenges exacerbate the rural-urban divide and hinder equitable development efforts.

A Framework for Transformational Governance

President Mahama’s administration must act decisively to navigate these challenges and lay the foundation for sustainable growth. Key priorities should include:

1. Promote Economic Diversification: Ghana must reduce its dependence on raw commodity exports by fostering industrialization and value-added production in sectors like manufacturing, technology, and agribusiness. Prioritizing value chains in cocoa and gold processing can generate higher revenues and create sustainable jobs.
2. Leverage Islamic Finance for Development: The introduction of Shariah-compliant financial instruments, such as Sukuk bonds, can fund critical infrastructure projects. Additionally, ethical financial products aligned with Islamic principles can support small and medium-sized enterprises (SMEs) and drive inclusive growth.
3. Enhance Agricultural Productivity: Investments in mechanization, irrigation, and market-oriented policies can transform agriculture. Establishing cooperatives and ensuring access to affordable credit will empower farmers and bolster food security.
4. Strengthen Anti-Corruption Measures: Establishing robust mechanisms to detect and punish corruption, including empowering institutions like the Economic and Organized Crime Office (EOCO), will reinforce public trust and promote transparency.
5. Foster Human Capital Development: Improving access to quality education and vocational training is essential. Targeted initiatives that prepare the youth for high-growth sectors will reduce unemployment and improve socio-economic outcomes.
6. Adopt Pro-Poor Policies: Strengthening social safety nets through programs targeting affordable healthcare, education, and housing will reduce inequality and uplift the most vulnerable populations.

Exploring the Halal Economy

As Ghana seeks innovative solutions to its economic challenges, the Halal economy emerges as a transformative opportunity. Valued globally at over $5.3 trillion, this economy spans multiple sectors and aligns with ethical and sustainable business practices. By establishing Halal-certified industries, leveraging Islamic finance, and promoting ethical tourism, Ghana can tap into this burgeoning global market, attract investments, and stimulate inclusive growth.

A Call for Visionary Leadership

Ghana’s path forward demands leadership that is innovative, inclusive, and resilient. President Mahama’s government must focus on implementing pragmatic solutions that bring tangible improvements to the lives of ordinary Ghanaians. Through bold policies, transparent governance, and strategic investments in human and economic capital, the nation can transition into a model for sustainable development and ethical growth.

As citizens, Ghanaians must also embrace their roles as partners in development, holding their leaders accountable and contributing to nation-building efforts. Together, the government and the people can usher in a prosperous, equitable, and hopeful future for Ghana.

The year 2024 was one of unprecedented economic turmoil for many African nations. From Nigeria and Ghana to Kenya, the adoption of IMF and World Bank economic prescriptions has proven catastrophic for governments and citizens alike. Civil unrest, protests, and elections that turned into referenda on economic mismanagement have sent a loud and clear message: Africa needs alternative economic solutions.

The Crisis of Western Economic Prescriptions

For decades, African nations have turned to the IMF and World Bank for financial relief and development guidance. Yet, these solutions often impose austerity measures that fail to address the structural and systemic issues plaguing African economies. Instead of providing lasting relief, these prescriptions have deepened inequalities, weakened local economies, and undermined governments’ ability to deliver essential services.

Last year, Ghana emerged as a striking case in point. Under the ruling New Patriotic Party (NPP), the government embraced IMF-driven austerity measures in a bid to stabilize its economy. Salary freezes, subsidy removals, and tax hikes led to widespread hardship. Inflation skyrocketed, unemployment surged, and the Ghanaian cedi plummeted, eroding the purchasing power of ordinary citizens. In response, Ghanaians overwhelmingly rejected the NPP in the recent general elections, favoring the opposition National Democratic Congress (NDC), which campaigned on promises of more inclusive economic policies.

Similarly, Nigeria experienced widespread protests after its government removed fuel subsidies and devalued the naira, following IMF recommendations. The resulting cost-of-living crisis has pushed millions into poverty, reigniting public skepticism about Western economic solutions. In Kenya, protests against tax hikes and soaring inflation signaled growing discontent with austerity measures that prioritize foreign debt servicing over citizen welfare.

The Failures of Austerity

The IMF and World Bank’s approach to economic stabilization hinges on austerity—a strategy that often translates into deep cuts in public spending, the removal of subsidies, and an overreliance on external borrowing. While these measures may temporarily appease creditors and stabilize currencies, they do so at the expense of long-term development.

• Social Impact: Public sector cuts disproportionately affect the most vulnerable. Education, healthcare, and infrastructure investment suffer, leaving citizens without access to critical services.
• Economic Consequences: Austerity stifles local economies, as reduced public spending limits demand and curtails economic activity. Small businesses, which form the backbone of many African economies, are particularly hard hit.
• Political Ramifications: The social unrest resulting from economic hardship undermines political stability and weakens public trust in governance.

The Call for Alternatives

The Islamic Economist has long argued for alternative economic models that prioritize social equity, local resource mobilization, and long-term sustainability. Western-inspired solutions treat African economies as monolithic entities, ignoring their unique contexts, resources, and potentials. To break free from this cycle, African governments must:

1. Promote Economic Justice: Adopt policies that distribute wealth equitably and empower marginalized communities. Islamic finance models, for instance, emphasize fairness, risk-sharing, and ethical investment.
2. Leverage Local Resources: Instead of depending on external loans, African nations must explore domestic resource mobilization strategies, such as efficient tax collection and combating corruption.
3. Strengthen Regional Collaboration: Regional bodies like ECOWAS, SADC, and the African Union must play a greater role in developing homegrown economic policies and fostering intra-continental trade.
4. Invest in Human Capital: Prioritize education, healthcare, and technology to build a resilient and self-sufficient workforce capable of driving innovation and development.
5. Diversify Economies: Overreliance on commodities like oil, gold, and cocoa has left African economies vulnerable to global market fluctuations. Diversifying into sectors like renewable energy, manufacturing, and technology is crucial.

The Role of Islamic Economics

Islamic economics offers a viable alternative rooted in principles of equity, justice, and sustainability. By rejecting interest-based borrowing and speculative investments, Islamic finance prioritizes real economic activity and the well-being of communities. Its emphasis on ethical investing, shared risks, and inclusive growth resonates with the needs of African economies.

Furthermore, the Islamic Development Bank and similar institutions can provide guidance and support for African nations seeking to adopt these principles. Governments should explore Sukuk (Islamic bonds) as a means of raising capital for infrastructure projects, ensuring that the benefits are shared broadly.

A Call to Action

The lessons of 2024 cannot be ignored. The IMF and World Bank’s prescriptions have left a trail of economic despair and political instability across Africa. The rejection of these policies by citizens and, increasingly, by governments underscores the urgency of seeking alternative pathways to development.

The Islamic Economist calls on African leaders to chart a bold, independent course. By embracing ethical economic models, fostering innovation, and prioritizing the needs of their people, African nations can break free from the cycle of dependency and despair. The time has come for a Pan-African Economic Summit to explore these alternatives and develop a collective vision for a prosperous future.

Africa’s destiny must lie in its own hands. Let 2025 be the year when the continent finally turns the page on failed prescriptions and embraces solutions that work for its people.

The geopolitical landscape of the Middle East has been reshaped by many significant events over the past few decades. However, perhaps none is as startling as the recent downfall of President Bashar al-Assad in Syria, long regarded as a cornerstone of the Axis of Resistance — a coalition of states and non-state actors opposed to Israeli occupation and imperialism. Assad’s fall was not only a major blow to the Syrian regime but also a challenge to its strategic allies, including Iran, Hezbollah, and Hamas. The ensuing reactions from certain factions, particularly from Palestinian groups like Hamas, have raised uncomfortable questions about Iran’s foreign policy and its role in the broader resistance to Israeli occupation.

Syria, under Bashar al-Assad, served as a key base for Iran’s support for both Hezbollah in Lebanon and Hamas in Gaza. Iran provided Syria, Hezbollah, and Hamas with substantial military, financial, and logistical support as part of its broader strategy to confront the Israeli occupation of Palestinian territories and maintain a united front against the Zionist state. It’s within this context that the recent jubilation from Hamas over Assad’s downfall is difficult to understand.

While Iran and Syria have invested heavily in the Palestinian struggle, Hamas, historically an ally of Syria and Iran, celebrated the overthrow of its benefactor. For Iran, which poured vast resources into supporting Syria’s Assad and, by extension, Hezbollah and Hamas, this response was nothing short of bewildering. It sends a chilling message about the fleeting loyalty of some Palestinian factions to the Iranian-led resistance axis.

Such dynamics are not new, however. A similar betrayal was witnessed in 1991 when Palestinian leader Yasser Arafat, in the midst of the Gulf War, chose to align himself with Saddam Hussein’s Iraq over Iran and its allies. It exposed a painful reality — that political alliances in the Middle East can shift with little regard for past alliances or the sacrifices made in the pursuit of a common goal.

Yasser Arafat’s betrayal, which came during the Gulf War, was one of the least expected, especially considering the warmth between the Palestinian leader and the Islamic Republic in the earlier years. It is well-documented that during Arafat’s visit to Iran in the early days of the Islamic Revolution, Imam Ayatollah Khomeini expressed deep admiration for his guest. In fact, it was reported that this was the only occasion when Khomeini was visibly smiling in public, a rare sight for the usually stoic leader. At that moment, the bond between Arafat and Khomeini appeared to symbolize the potential for strong, lasting solidarity between the Palestinian cause and Iran’s revolutionary ideals. Yet, in a dramatic reversal, Arafat chose to align himself with Saddam Hussein during the Gulf War, a move that left many disillusioned. This shift in allegiance highlighted the complex, often unpredictable nature of political alliances in the region, revealing that the Palestinian leadership, despite its ties to Iran, was willing to forsake that relationship when their political needs required it.

This brings us to the broader implications for Iran’s foreign policy. Iran’s allies in the Axis of Resistance — Hezbollah, Hamas, and others — have repeatedly shown that, while their long-term goal may align with Iran’s, they are quick to shift allegiances based on their changing circumstances. It raises the question: Have Iran’s sacrifices in supporting these groups been in vain?

This shifting loyalty underscores a bitter truth: the Palestinian cause, though noble, is continually exploited by regional players whose interests can diverge with little notice. As long as these groups are willing to quickly abandon their supposed allies, it seems that a resolution to the Palestinian issue, much less the long-awaited two-state solution, is no closer. In light of the strategic defeat of the Axis of Resistance and these unpredictable alliances, it is a stretch to hope for any meaningful change in the near future.

Given these complex dynamics and setbacks, it is perhaps time for Iran to rethink its foreign policy approach. For over four decades, the Islamic Republic has poured significant resources into its foreign interventions and alliances, but the recent experiences should be a signal to refocus those efforts closer to home.

At present, Iran’s domestic situation is in dire need of attention. The economic toll of Western sanctions, exacerbated by internal political dynamics, continues to cripple the country’s economy. Inflation has reached record levels, with the value of the Iranian rial plummeting by more than 80% in the past five years. Unemployment remains high, particularly among youth, and there are widespread protests against economic hardship. According to reports from international organizations, the Iranian economy contracted by around 4.5% in 2022, while inflation soared above 50%.

Perhaps most troubling of all is the growing disparity in social services, with essential sectors like healthcare and education being stretched beyond their capacity. These dire conditions demand an urgent focus on domestic reform.

To strengthen the Islamic Republic’s capacity to defend itself against external threats, such a domestic reset is paramount. Redirecting attention to economic recovery, social welfare, and strengthening the internal infrastructure could provide a new, robust foundation for the nation. Iran, as a model Islamic state, needs to focus on policies that will improve living standards and ensure sustainable growth for its citizens.

Ultimately, Iran must ask itself whether its foreign adventurism, built on shaky alliances and fleeting loyalties, is worth the ongoing strain on its domestic development. There is an urgent need to recalibrate foreign policy, focusing less on an increasingly fragile resistance axis and more on domestic stability, economic growth, and social cohesion.

The time has come for Iran to prioritize its national interests — not only for the wellbeing of its people but to ensure that it can stand resiliently in the face of external aggression. It is through strength at home that Iran will best be able to live up to its aspirations of regional leadership and global influence.