As political campaigns intensify, there is growing anticipation that the circulation of money will increase. Streets are already filled with party flags, billboards, posters, and blaring campaign songs. These activities often lead to a surge in cash flow.
A study by the Ghana Center for Democratic Development and Adam Smith International highlights that since the start of the Fourth Republic on January 7th, 1993, the influence of money in Ghanaian politics has grown significantly. The study estimates that running for parliament costs around $693,000 (about GH¢11 million), with half spent on nurturing the constituency and the other half on the general election campaign.
The cost of running for president for leading parties like the NDC and NPP is estimated at $100 million (about GH¢1.6 billion). The study further reveals that party campaign financiers are often involved in organized crimes such as illegal mining, oil bunkering, fraudulent business practices, procurement violations, and kickbacks from contract awards. These activities generate illicit wealth, usually at the expense of the state.
However, during political campaigns, this wealth is redistributed, reaching more people than it would otherwise. The funds are used to pay vendors and service providers, while a significant portion also ends up in the pockets of party supporters, sympathizers, or anyone willing to wear a party T-shirt and attend campaign events.
Campaign rallies and activities such as keep-fit exercises often involve cash handouts ranging from GH¢50 to GH¢200 for ordinary supporters and more for local party officials. Businessmen and women, aware of this influx of money, are preparing to benefit, seeing this period as a “cocoa season,” a term borrowed from the profitability of harvesting and selling cocoa beans.
Traders hope that intensified party activities will boost sales, as more people will have access to funds and be able to purchase more goods. With the high cost of goods, sales have declined, but traders anticipate that an increase in cash circulation will allow people to buy more.
However, the influx of cash has inflationary implications, often noticeable a few months after the election. While cash influences votes and has negative outcomes, the monetization of party politics also leads to the redistribution of illegally acquired wealth, albeit unevenly. Some individuals receive more than others, while those who do not openly support a party may miss out on this redistributed wealth.
