President John Mahama, in his State of the Nation address, expressed serious concerns regarding Ghana’s economic stability, reporting a mere $64,000 in the Sinking Fund and ongoing financial challenges in various sectors. He announced a National Economic Dialogue and pledged to take decisive measures to address the country’s debts and restore growth.
In his inaugural State of the Nation address on February 27, 2025, President John Mahama declared grim conditions for Ghana, stating, “the state of our nation is not good.” He highlighted a mere $64,000 balance in the Debt Service Reserve Account, known as the Sinking Fund, alongside GH¢143 million in local currency accounts.
President Mahama criticized the previous administration’s claims of leaving sufficient buffers for debt repayments. He reported a staggering financing shortfall in the energy sector valued at approximately $2.2 billion for the year 2025. He also cited a failure to address the financial sector’s ongoing challenges despite significant expenditure for its cleanup.
The President lamented the dire state of the economy, projecting total debt servicing to reach GH¢280 billion over the next four years. He pointed out that stalled infrastructure projects totaling $2.95 billion would incur additional costs of around GH¢15 billion due to delays from debt defaults.
Mr. Mahama announced a National Economic Dialogue to take place on March 3rd and 4th, followed by budget presentation on March 11th. He expressed his commitment to resolving the nation’s challenges instead of dwelling on grievances, stating, “I have not come here to lament the state of our country.”
Recalling his earlier tenure, he asserted his track record of resolving power shortages and expressed determination to address the current economic crisis with a collaborative approach. He acknowledged the magnitude of the issues, describing the national economy as “broken on many fronts” due to mismanagement.
The President also cited serious public and state enterprise debts, including a GH¢721 billion public debt. He outlined the detrimental effects of mismanaged contracts in the cocoa industry, with losses exceeding $1.33 billion. He stressed the urgency of rectifying these financial missteps and reaffirmed his commitment to leading Ghana towards recovery and growth.
In summary, President John Mahama’s address reveals a serious economic crisis in Ghana, citing insufficient buffers for debt repayment, a large debt burden, and significant challenges in the energy and cocoa sectors. The upcoming National Economic Dialogue signifies an effort to confront these issues head-on. Mahama’s determination to work collaboratively with the nation underlines a critical commitment to restore Ghana’s economic health.
Original Source: www.ghanabusinessnews.com
