President John Dramani Mahama has disclosed that Ghana’s Sinking Fund holds a balance of just $64,000 and GHS143,000, contradicting claims by the previous Akufo-Addo administration that it left substantial reserves for debt repayment.
Delivering his first State of the Nation Address (SONA) of his second term on Thursday, February 27, 2025, President Mahama addressed the financial situation inherited from his predecessor.
“There have been claims that buffers were left for ongoing debt repayments in 2025. The Sinking Fund shows a balance of only $64,000 in the dollar account and GHS143,000 in the Cedi account,” Mahama revealed.
He further highlighted the country’s mounting debt burden and the challenges ahead in stabilizing the economy.
“The repercussions of the accumulation and the economic mismanagement will require extensive work and sacrifices to repair,” he stated.
According to the president, Ghana’s debt servicing over the next four years will total GHS280 billion—comprising GHS150 billion for domestic debt and GHS130 billion for external debt servicing.
“In the next four years, our debt servicing will amount to GHS280 billion and comprises GHS150 billion for domestic debt and GHS130 billion in external debt servicing,” Mahama emphasized.
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Meanwhile, President John Dramani Mahama has revealed that Ghana’s public debt has risen to GH₵721 billion.
“Our economy is in disarray, and that is putting it mildly. After an initial assessment of the books, we have discovered that our economic problems are much deeper than was publicly known,” he told lawmakers on Thursday.
According to President Mahama, major state-owned enterprises, including the Electricity Company of Ghana (ECG) and the Ghana Cocoa Board (COCOBOD), are struggling with significant debts. ECG owes GH₵68 billion, while COCOBOD’s total debt stands at GH₵32.5 billion, with GH₵9.7 billion due for payment by the end of September 2025.
The President also disclosed that COCOBOD had failed to supply 333,767 metric tons of cocoa that had already been sold at $2,600 per ton during the 2023/2024 crop season. This, he said, has resulted in a revenue loss of $840 million. Additionally, Ghana is expected to lose another $495 million due to cocoa supply delays under rolled-over contracts.
“Not even the restraints of an IMF programme were enough for the previous managers of the economy to exercise prudence in the management of our finances. We are saddled with mind-boggling debts and glaring signs of almost deliberate mismanagement of our resources,” Mahama said.
The government has pledged to take urgent measures to stabilize the economy and restore confidence in Ghana’s financial system.
