President John Dramani Mahama has delivered a stark assessment of Ghana’s economic situation, describing the nation as “broken on many fronts” due to staggering debt and financial mismanagement.
Presenting his first State of the Nation Address (SONA) of his second term to Parliament in Accra on Thursday, February 27, he painted a grim picture of the country’s finances, pointing to unsustainable debt levels and mismanagement of key state institutions.
Mahama disclosed that Ghana’s public debt has soared to GHS721 billion, placing immense pressure on the country’s economy. He further highlighted the dire financial condition of major state-owned enterprises, including the Electricity Company of Ghana (ECG) and the Ghana Cocoa Board (COCOBOD), both of which are struggling under heavy debt burdens.
“We are saddled with staggering debts and glaring signs of almost deliberate and, in some cases, reckless mismanagement of our resources,” Mahama stated.
“In addition to the public debt, which amounts to a staggering GHS721 billion, several state-owned enterprises are also in debt, including the ECG, which owes GHS68 billion.
Ghana COCOBOD, the hope of cocoa farmers, is highly indebted. Its balance sheet indicates a total debt of GHS32.5 billion, of which GHS9.7 billion is due to be paid by the end of September 2025.”
The president’s revelations underscore the severity of Ghana’s economic crisis, reinforcing the urgent need for financial restructuring and responsible governance to restore stability.
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Meanwhile, the President, John Dramani Mahama, has acknowledged the severe economic challenges facing Ghana, describing the situation as a crisis. He noted that the country is experiencing unprecedented hardships, impacting the lives of its people.
“Our economy is in dire straits, which is putting it mildly.” President Mahama said this in his State of the Nation Address to Parliament on February 27, 2025, since assuming office for a second term.
To tackle the crisis, he announced plans to hold a national economic dialogue on March 4th and 10th to discuss possible solutions.
President Mahama vowed to tackle the economic crisis head-on, drawing on his past success in resolving power shortages during his previous term. He recalled his efforts to fix “Dumsor,” a legacy problem of power shortages, which he successfully addressed during his tenure from 2016 to 2017.
With this experience in mind, he expressed confidence in his ability to reset the economy on a path of growth and prosperity.
As he stated, “I will fix the economic crisis confronting our country and reset it on a path of growth and prosperity.” This determination reflects his commitment to addressing the economic woes that have plagued Ghana.
He noted that an initial assessment of the country’s financial situation revealed problems much deeper than previously known. The economy is “broken on many fronts,” he stated, underscoring the need for comprehensive reforms.
Ghana’s economic challenges are compounded by external factors, including high inflation and a significant debt burden. The country has been working under an IMF program to restructure its debt and stabilise its economy, with efforts aimed at reducing inflation and improving fiscal management.
President Mahama’s commitment to solving the economic crisis is bolstered by his government’s collaborative approach. He emphasised the importance of working with all stakeholders, including Parliament and the broader public, to implement effective solutions. As he said, “My approach is to accept challenges and work hard to resolve them,” reflecting his determination to lead Ghana through this difficult period.
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The government’s plan includes presenting a comprehensive budget on March 11, which will outline strategies for economic recovery. Despite the challenges, Ghana is expected to see economic growth improve by 2025, driven by structural reforms and macroeconomic stabilisation.
