The Economist Intelligence Unit (EIU) has released its ‘Africa Outlook 2024’ report, foreseeing a potential change in power dynamics in Ghana’s 2024 general elections.
The EIU predicts a transfer of power from the ruling New Patriotic Party (NPP) to the opposition National Democratic Congress (NDC). The anticipated shift is attributed to factors such as declining living standards, limited job opportunities, and inadequate public services.
The report highlights that several African nations, including Ghana, will grapple with financial challenges arising from excessive debt and hefty debt-repayment burdens in 2024.
The continent’s economic growth and stability may face constraints due to the financial pressure stemming from elevated external debt and the aftermath of various external shocks, such as the COVID-19 pandemic, Russia’s invasion of Ukraine, and adverse weather conditions linked to global climate change.
The EIU emphasizes the significance of external debt restructuring to alleviate the mounting risks in 2024. While the report specifically mentions Ghana’s political landscape, it provides a broader context of Africa’s economic challenges, citing the cautionary tale of Zambia, which recently concluded a debt-restructuring deal with official and private-sector creditors.
The report suggests that other countries, including Ethiopia, Malawi, Mozambique, Somalia, Sudan, and Zimbabwe, might engage in debt restructuring negotiations. It underscores the hesitancy of nations to embark on such processes unless deemed necessary.
Overall, the EIU’s outlook underscores the intricate relationship between economic challenges, debt restructuring, and political dynamics in African nations.
SOURCE: DAILY MAIL GH
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