The flagbearer of the opposition National Democratic Congress (NDC) John Mahama has been ticked as the favourite to win the 2024 general elections.
This is according to a report published by the Economist Intelligence Unit (EIU).
The EIU stated in its research titled ‘Africa Outlook 2024’ that Ghana is expected to see a power transition from the incumbent New Patriotic Party to the opposition main National Democratic Congress.
The EIU predicts that low public services, dwindling living standards, and a lack of work prospects will be the main causes of this.
According to the analysis, more African countries will experience financial strain in 2024 as a result of high debt and a burdensome debt repayment schedule. This will have an adverse effect on economic growth and stability in certain countries. The financial strain resulting from high levels of foreign debt has been exacerbated by the aftermath of several external shocks in recent times, including as the COVID-19 epidemic, Russia’s incursion into Ukraine, and unfavorable weather patterns associated with climate change.
“Softer economic growth, higher inflation, weaker currencies and more costly international capital have exposed Africa’s debt frailties in 2023, and risks are likely to mount in 2024 without external debt restructuring. Kenya’s biggest financial event in 2024 is the June 24th deadline to redeem a US$2bn Eurobond in a single bullet payment, on top of other debt-servicing commitments. Using a combination of tactics, Kenya will strive to avoid a default and the consequent damage to its reputation, and will prioritise a timely Eurobond redemption in 2024.
“The sum is large enough to generate legitimate concern, but not so large as unmanageable. If Kenya clears the barrier in 2024, external debt pressures will ease, as the next Eurobond repayments (US$1.9bn) are not due until 2027-28.
“Zambia, which has been in external debt distress since 2020, secured a debt-restructuring deal with official creditors and private-sector creditors in October. Zambia thus seems likely to secure a complete resolution with its external creditors by early 2024, over three years after first entering default.
“Dragged-out negotiations make Zambia’s experience a cautionary tale for other sovereigns, and those heavily indebted to China in particular. Countries will be hesitant about embarking on a debt restructuring unless necessary, but we do expect negotiations in Ethiopia, Ghana, Malawi, Mozambique, Somalia, Sudan and Zimbabwe.”
