Ghana Hopes to Trim Executive Payroll via Constitutional Caps

Ghana's constitutional review committee recommended extending the presidential term from four to five years, according to a final report presented to President John Mahama. The proposal does not suggest changing the current two-term cap but includes a recommendation to lower the minimum age for presidential candidates to 30 from 40. Lawmakers will now review the proposals before they are put to a public referendum.

The committee also suggested limiting the number of ministers and deputy ministers to 57 and banning members of parliament from holding those roles. This follows concerns over the financial burden caused by the previous administration's appointment of more than 100 such positions. The recommendations aim to streamline government operations and reduce administrative costs.

The 1992 constitution has been a cornerstone of Ghana's governance since its adoption. Since then, the country has faced challenges including coups d'etat after the military overthrew Kwame Nkrumah in 1966. The proposed reforms seek to address structural issues and enhance governance, aligning with President Mahama's campaign promises to strengthen the country's institutions.

Implications for Governance and Leadership

Extending the presidential term to five years could impact how leaders manage their mandates. A longer term may allow for more comprehensive policy implementation but could also raise concerns about concentration of power. The reduction of the minimum age to 30 could foster a younger generation of leaders and increase political participation among the youth.

The proposed cap on ministerial appointments aims to reduce the size of the executive branch, which has been criticized for inefficiency and excessive spending. By limiting these roles, the government hopes to improve accountability and reduce the financial burden on the state.

Public and Political Reactions

President Mahama, who recently won a second term in the December 2024 elections, has made constitutional reforms a key part of his agenda. His victory came amid public frustration with the previous administration's handling of fiscal matters, including a debt restructuring effort. The committee's recommendations reflect a broader push to streamline governance and improve public trust in institutions.

The next step involves legislative review before a public vote. This process will determine whether the proposals gain enough support to become part of Ghana's constitutional framework. Political analysts will be watching for potential opposition from factions that may view the changes as power consolidation.

Economic and Structural Reforms

In addition to constitutional changes, Ghana has taken steps to strengthen its economic governance. The legalization of cryptocurrency trading, accompanied by a regulatory framework, aims to manage risks and encourage innovation in the financial sector. The Bank of Ghana has positioned itself as the primary regulator, giving it authority to license and supervise virtual asset service providers.

These measures align with broader efforts to attract investment and modernize the economy. The country's move to regulate cryptocurrency also reflects its growing role as a hub for crypto adoption in Sub-Saharan Africa. With significant crypto activity recorded in 2025, the new framework is expected to provide clarity and stability for market participants.

International Support and Economic Recovery

Ghana's economic recovery has received support from the International Monetary Fund, which recently completed a review of its Extended Credit Facility arrangement. The approval allows for an additional $385 million in disbursements, bringing the total to $2.8 billion. The funds will support ongoing efforts to stabilize the economy, reduce debt, and improve public finances.

The IMF has noted positive progress in Ghana's fiscal and external positions. Strong growth, low inflation, and improved debt restructuring efforts have contributed to renewed investor confidence. The government's commitment to structural reforms, including public sector efficiency and financial transparency, remains essential for long-term stability.

Regional and Global Context

Ghana's constitutional reforms take place against a backdrop of regional political shifts. While some West African nations are strengthening ties with traditional allies like France, others are exploring new partnerships, such as with Russia. Togo, for example, has diversified its international relationships, including a recent military agreement with Russia.

These developments highlight the complex geopolitical landscape in the region. As Ghana considers constitutional changes, it must also navigate its position in a rapidly evolving regional and global context. The outcome of the proposed reforms will not only shape the country's governance but also influence its interactions with neighboring states and international partners.