Ghana Election Watch - May 2016 africapractice Accra Dar es Salaam Harare Johannesburg Lagos London Nairobi Perth Ghana Election Watch – May 2016 Ghana will hold general elections on 7 November 2016 to determine the next President and the make-up of the country’s 275-seat legislature. In this note, we explore some of the key themes around election campaigning, while future reporting will focus on the likely conduct and outcome of the polls. As with previous recent elections in Ghana, we believe the 2016 vote is set to be another hotly-contested race with the result resting on a knife edge at this stage. The ruling National Democratic Congress (NDC) and opposition New Patriotic Party (NPP) have dominated national politics since the transition from military rule in 1992. During this era, Ghana has emerged as one of the most vibrant democracies in West Africa, witnessing both strong political competition and several peaceful transitions of power. Nevertheless, electoral politics can still be a volatile game and the stakes have never been higher in the upcoming vote, with the country’s economy in a state of prolonged turmoil. President John Mahama and the ruling NDC will undoubtedly seek to make use of their incumbency to stifle the opposition challenge, exploiting the rumbling factional divisions within the NPP fold. But poor economic management and headwinds in the global economy have contributed to a weakening currency, growing fiscal deficit, and rising debt and inflation. These conditions are acutely felt by the electorate, contributing to simmering socio-economic discontent which could play into the hands of the opposition NPP. With the competition so tight, ultimately a lot will boil down to how each party campaigns. Although some parts of the country witness rigid voting along ethno-regional lines, Ghana has proven in the past that there is a small but influential proportion of swing voters who can carry the result in either party’s direction. Consequently, whichever party manages to overcome internal differences, manage negative media coverage and run a vibrant and unified campaign, is likely to emerge the victor. Upper East Upper West Ghana 2012 Presidential Election Northern 70.88% Brong-Ahafo 47.33% 45.53% Western Volta Ashanti Eastern 80-90% Mahama 60-70% Mahama GT Accra Central 46.92% 39.11% Ashanti 51.49% Brong Ahafo 52.12% Central 56.91% 28.35% 42.03% 52.31% 58.23% Eastern Greater Accra Northern 29.29% 66.43% Upper East 29.26% 65.54% Upper West 12.93% Volta 85.47% 43.8% 54.42% Western 50-60% Mahama 50-60% Akufo-Addo 70-80% Akufo-Addo africapractice Ltd, 14 Cambridge House, 210 Shepherds Bush Road, London W6 7NJ, +44 (0)20 7087 3780 - www.africapractice.com 01 Ghana Election Watch - May 2016 africapractice Party positioning The NDC Amid a worsening economic situation which has drawn attention to shortfalls in public administration, the ruling NDC has faced rising internal dissent. As a sign of this malady, NDC founder Jerry Rawlings and some senior party members have publicly criticised the current party leadership, openly accusing some of corruption. Meanwhile, Rawlings’ wife Nana Konadu Agyeman-Rawlings who is another prominent party power-broker has defected to form her own party, the National Democratic Party (NDP). Despite these internal divisions, the NDC has managed the fallout reasonably well, while maintaining a fairly loyal support base at its grass roots particularly in its strongholds in the three northern regions and the Volta region. And importantly, even with his mixed track record in office, President Mahama has maintained a broadly positive public image as an affable statesman managing the challenges posed by tough external economic conditions. He also has the extra advantage of a parliamentary majority with the NDC still holding 151 out of 275 available seats in the legislature, and greater visibility and influence at the local government level. The NPP The NPP’s presidential candidate Nana Akufo-Addo contested both the 2008 and 2012 elections, losing to both John Atta Mills and John Mahama respectively. But he is by no means a lame duck in the upcoming contest as a respected figure with a strong and loyal following in the Ashanti and Eastern regions, while still making inroads in many other parts of the country. Following a narrow defeat in the 2012 vote, he and his party challenged the outcome, claiming electoral fraud. But unlike in some countries where such a challenge might trigger instability, it is noteworthy that in Ghana the issue was pursued through the courts where it attracted significant public interest. Ultimately, after eight months of legal wrangling, the NPP’s case was thrown out and Mahama confirmed as the rightful President. Nevertheless, this sets an interesting precedent for 2016 should the NPP again be thwarted in its electoral ambitions, potentially prompting a more vocal – and volatile – challenge to the result. In the last two years, the NPP has also faced its own internal battles. This came to a head with the murder of the party’s regional chairman, allegedly by the brother of the party’s national chairman in May 2015. As a result of this incident and perceived efforts to try and undermine Akufo-Addo’s leadership, the national chairman, general secretary and vice chairman of the party were then suspended by the executive council resulting in ongoing court battles. These internal divisions will likely have a significant impact on the NPP’s ability to put up a concerted challenge to the NDC’s incumbency, particularly if they are mishandled in the coming months. africapractice Ltd, 14 Cambridge House, 210 Shepherds Bush Road, London W6 7NJ, +44 (0)20 7087 3780 - www.africapractice.com 02 Ghana Election Watch - May 2016 africapractice Key themes The main themes that will define the conduct and outcome of Ghana’s election in November are the economy, security and corruption. Economy Security Having attained lower middle-income status in 2010, Ghana became hailed as a shining African economic success story. This followed several years of steady economic growth and a rebasing of the country’s GDP fundamentals. However, since the slide in global commodity prices began in 2013, bringing with it other impacts on currency strengths and global capital flows, Ghana has suffered severe economic challenges, which have in turn exposed shortfalls in domestic economic management and public administration more broadly. Electoral cycles can often play into pre-existing violent local conflicts over competition for land and resources and Ghana is no exception to this rule. Northern Ghana in particular has witnessed a number of inter-communal clashes in recent months, while party primaries also saw several small-scale incidents. Large-scale unrest or instability appears unlikely in the Ghanaian context. But businesses operating in remote areas or in some of the main cities where political unrest tends to flare up most commonly will certainly need to keep a close monitor on local dynamics. Worsening fiscal and budgetary deficits have resulted from lower-than-anticipated revenues and stubbornly high spending, largely on public salaries, energy subsidies and debt servicing. Meanwhile, the rapid depreciation of the local cedi currency has exacerbated the government’s plight, adding to the debt burden. An IMF bailout package in 2014 was conditional on much-needed public sector reform initiatives to reduce the cost of government. Although the country has since made some progress in stabilizing the cedi and addressing challenges in the power sector, the electoral cycle risks fueling a further wave of reckless spending with negative long-term economic consequences. These conditions have also impacted on the real economy, affecting jobs and prices. Rising socio-economic hardships will undoubtedly play into political campaigning and provide a potential trigger for unrest around the poll. However, even against this economic backdrop, the NPP will need to run a vibrant and unified campaign if it is to rally the support of swing voters, who form a relatively small but influential segment of the population. Ghana has also been on high alert following recent terrorist attacks in the sub-region by transnational Islamist militants. Notably, the country has been forced to put counter-terrorism measures in place following the recent terrorist attacks in Côte d’Ivoire, Mali and Burkina Faso. Amidst a growing climate of fear in some parts, security – and the capacity of government to keep its citizens safe – is likely to be one of the key factors determining how Ghanaians vote. In this respect, neither party has yet made a clear policy stance, though the NDC’s decision to accept a number of Guantanamo prison detainees has irked some voters. Corruption Corruption is perhaps the most talked about issue in Ghanaian politics today. Several highprofile corruption scandals have hit the current government, lifting the lid on an issue which has remained more under the radar than in many neighbouring West African states in recent years. Internal denunciations within the NDC highlight the extent to which this has become a critical campaign issue. Corruption scandals implicating members of the NDC government have sorely undermined the party’s standing, presenting an opportunity for the NPP to exploit in its campaigning. For example, one of the latest graft scandals relating to the branding of public transport buses is alleged to have direct links to the President’s office. This is being heavily used by the NPP in its anti-government rhetoric in the elections lead-up. While we have not seen the same level of popular mobilization and vocal campaigning on the issue as happened during the opposition’s landmark electoral victory in Nigeria last year, this is certainly likely to be an issue which rises in prominence in the coming months. africapractice Ltd, 14 Cambridge House, 210 Shepherds Bush Road, London W6 7NJ, +44 (0)20 7087 3780 - www.africapractice.com 03 Ghana Election Watch - May 2016 africapractice Elections outlook The 2012 election saw the NDC’s John Mahama secure 50.7% of the vote against 47.7% in favor of Nana Akufo-Addo. The 2016 election result currently hangs in the balance but is expected to be equally if not more competitive. The effectiveness of electoral campaign strategies will be critical, as will the ability of each party to avoid becoming bogged down in internal wrangling, which has formed a prominent feature of the political landscape in the last few years. As is typical for an election year, we anticipate levels of investment and growth to slow in the third quarter amid the distractions posed by the elections process. Regardless of the elections conduct and outcome, a continued push for greater local participation in various sectors of the economy is likely. The NPP believes that empowering businesses will be key to driving the economy in an efficient manner. Accordingly, a win for the party could potentially bring positive impacts for business with greater incentives for private sector investment. Furthermore, the NPP is likely to push for an easier approach to accessing business loans to help grow local businesses in particular. The party’s vice presidential candidate who formerly worked as the deputy governor of the Central Bank is expected to follow through with promises of a more effective harmonization between the monetary and fiscal policies of the country, as well as implementing measures to check the increasing interest rate spread. A win for the NDC on the other hand will see a continued focus on infrastructural development through public investments and Public Private Partnerships (PPPs). The party believes that an enabling business environment is created through the provision of the required The Electoral Commission In June 2015 Charlotte Osei was appointed to succeed Dr. Kwadwo Afari-Gyan who had supervised elections in the country since 1992. Major opposition parties have questioned the Electoral Commission’s (EC) preparedness for this year’s election. With less than six months to go to the polls, the opposition political parties feel the EC is under-performing. The main organizational challenges relate to: • Cleaning the Voter Register • Education and voter sensitization • Redeeming the EC’s credibility as a neutral arbiter after the fallout from the last election. infrastructure such as road networks, hospitals, schools, water and energy development. Additionally, a renewed focus on increasing regional trade is expected if the NDC is re-elected. As President of the ECOWAS Commission, Mahama has pushed for the removal of bottlenecks to regional trade, and this will also be an area of continued focus were he to be re-elected. This has already included new rules around visas for Africans seeking to come to Ghana, and reforms to immigration systems and transport infrastructure. Our next note will look at the likely conduct and outcome of the vote, and break down in greater detail the implications for business. Contact Roddy Barclay Head of Intelligence and Analysis [email protected] Asantewa Donkor Ghana Consultant [email protected] Kwesi Koomson Ghana Consultant [email protected] africapractice - www.africapractice.com 04
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