A Critical Analysis of President Mahama’s Job Creation Policies: Challenges and Alternative Solutions

_By: Charles Owusu Juanah Esq._

Introduction

President John Dramani Mahama’s 2025 State of the Nation Address (SONA) outlines a range of policies aimed at addressing Ghana’s high unemployment rate, particularly among the youth. While these initiatives, such as the Adwumawura Programme, National Apprenticeship Programme, and One Million Coders Programme, reflect an acknowledgment of Ghana’s unemployment crisis, a critical analysis reveals significant gaps in their feasibility, sustainability, and constitutional alignment. This article provides an objective critique of these policies and proposes alternative, constitutionally grounded solutions for effective job creation.

Assessing Mahama’s Job Creation Policies

1. Centralized Government-led Initiatives: A Structural Weakness

Mahama’s job creation strategy heavily relies on government-led interventions such as the newly created Ministry for Youth Development and Empowerment and direct financial support to businesses. Historically, excessive reliance on state-led job programs has led to inefficiencies, corruption, and a lack of sustainability.

A major concern is the duplication of functions. The National Youth Authority (NYA), Ghana Enterprise Agency (GEA), and Council for Technical and Vocational Education and Training (COTVET) already exist to facilitate youth employment. Creating new structures without streamlining existing ones risks bloating government expenditure rather than efficiently utilizing available resources.

Additionally, the 1992 Constitution of Ghana under Article 36(1) requires the state to ensure that “the economy is managed to achieve maximum welfare, freedom, and happiness of every citizen with a right to work under satisfactory conditions.” However, government-heavy employment models often crowd out private sector growth, violating the principle of promoting economic freedom.

2. The 24-Hour Economy Initiative: A Premature Gamble?

The proposed 24-Hour Economy aims to create jobs by extending business hours across various industries. While this could generate employment, the success of such a model hinges on essential infrastructure, including stable electricity, security, and efficient transportation. Ghana’s persistent power supply issues (as seen in Dumsor under Mahama’s previous administration) could render this initiative unworkable.

The 24-hour economy is also dependent on demand. If there is a high rate of demand for commodities and services, then the country can implement such a policy effectively. However, Ghana’s current economic structure does not suggest a strong consumer base capable of sustaining extended business hours. Data from the Ghana Statistical Service indicates that consumer spending patterns are largely concentrated within traditional business hours, making it uncertain whether businesses would benefit from staying open longer. Without evidence of significant demand, the 24-hour economy risks becoming an unproductive policy rather than a genuine job-creation tool.

Under Article 36(2)(e), the Constitution obligates the state to “ensure that the economy provides adequate means of livelihood and suitable employment.” A realistic job creation model should prioritize strengthening existing industries before imposing a radical shift to a 24-hour economy.

3. The Apprenticeship and Informal Sector Strategy: Limited Scope

The National Apprenticeship Programme aims to equip 10,000 young people with employable skills, particularly in the informal sector. While commendable, this initiative falls short in addressing Ghana’s core employment issue—mismatch between education and labor market demands.

Ghana’s youth require more than traditional vocational training; they need digital, technical, and entrepreneurial skills relevant to global markets. Article 25(1) of the Constitution guarantees equal educational opportunities for all. Instead of isolated apprenticeship schemes, Ghana needs a nationwide reform of the education system to align curricula with emerging industries such as technology, renewable energy, and agribusiness.

4. State-Funded Startups: A Potential Drain on Public Finances

The Adwumawura Programme, which proposes to fund 2,000 youth-led businesses annually, raises concerns about its long-term fiscal sustainability. Government-backed financing schemes often suffer from poor oversight, leading to misallocation of funds.

A better alternative would be incentivizing private venture capital investment through tax breaks, as stipulated under Article 36(2)(b), which calls for the promotion of private sector development. Instead of direct government intervention, Ghana should create a Startup Capital Fund managed by a Public-Private Partnership (PPP) to ensure financial accountability and efficiency.

Alternative Solutions for Sustainable Job Creation

To create meaningful and lasting employment opportunities, Ghana must focus on structural reforms, private sector-led initiatives, and a robust industrial policy. Below are five alternative strategies that align with constitutional principles:

1. Strengthening the Private Sector and MSMEs

Micro, Small, and Medium Enterprises (MSMEs) account for over 80% of Ghana’s businesses. The government must create an MSME Growth Fund, offering tax incentives and low-interest loans to private businesses with clear employment targets.

This approach is supported by Article 36(2)(a), which mandates the state to promote “an enabling environment for a balanced development of the economy through private initiative.”

2. Agriculture as a Business, Not a Subsistence Model

Rather than relying on traditional farming incentives, Ghana must invest in agro-processing zones, where farmers partner with private firms for value addition. The government should:

• Provide tax holidays to agribusiness startups.
• Establish agricultural cooperatives with direct market linkages.
• Introduce block farming models that promote mechanized farming.

This aligns with Article 36(9), which mandates the state to “encourage agriculture on the basis of rural self-reliance and improved techniques.”

3. Industrialization Through Special Economic Zones (SEZs)

Job creation will remain limited unless Ghana moves from a raw material exporter to a manufacturing hub. The government must:

• Develop Special Economic Zones (SEZs) to attract foreign and local investors.
• Implement tax waivers for industries that generate a high number of jobs.
• Introduce incentives for technology transfer partnerships between Ghanaian firms and international manufacturers.

This approach aligns with Article 36(2)(c), which calls for the development of “a sound and balanced economy” through industrialization.

4. Export-led Growth and Digital Jobs

Instead of heavy domestic borrowing, Ghana must adopt an export-led economic model by:

• Reviving factories under the One District, One Factory (1D1F) policy.
• Expanding digital outsourcing hubs, enabling youth to access global freelance and remote jobs.
• Leveraging the African Continental Free Trade Area (AfCFTA) to position Ghana as a technology and e-commerce hub.

5. Infrastructure Investment through Public-Private Partnerships (PPPs)

A robust infrastructure network is key to job creation. Rather than solely depending on government projects (as seen in the Big Push initiative), Ghana must:

• Establish PPP models for transport, housing, and energy projects.
• Encourage foreign direct investment (FDI) into infrastructure sectors through special investment packages.

Article 36(7) supports this by directing the state to “guarantee economic independence through investment in productive infrastructure.”

Conclusion: A Constitutionally Sound Approach to Job Creation

While President Mahama’s job creation policies highlight key economic concerns, they largely mirror past government-led initiatives that have failed to deliver sustainable employment. Ghana needs a private sector-driven, industrial-based, and digital economy-focused approach.

Regardless of our preference, there’s little or nothing we can do. John Dramani Mahama is the President of Ghana, and he is going to be in office for the next four years. If we truly want Ghana to progress, our only option is to offer advice. Since I’m not part of his cabinet or administration, the only medium I can use to advise him is through this form. Whether he adheres to my advice is his choice to make.

By adhering to constitutional principles of economic freedom, private sector growth, and industrialization, Ghana can create a resilient job market that benefits both present and future generations.

A job creation policy should not just seek to employ people temporarily but should empower them with skills, infrastructure, and opportunities to thrive independently; a true reflection of national prosperity.