President John Dramani Mahama has painted a grim picture of Ghana’s economy, revealing that the country’s financial situation is more precarious than initially thought.
Delivering his State of the Nation address to Parliament, Mahama highlighted the debt accumulation and economic mismanagement of the previous administration, which has left the country with a staggering public debt of GHS 721 billion.
The President noted that despite the restraints of an IMF program, the previous economic managers failed to exercise prudence in managing the country’s finances.
The inflation target of 18% set for 2024 was exceeded, with the actual rate reaching 23.8%.
The Ghana cedi also continued its downward slide, losing 19% of its value against the dollar in 2024, after a 27.8% decline in 2023.
President Mahama also highlighted the debt woes of State-Owned Enterprises, including the Electricity Company of Ghana (ECG), which owes GHS 68 billion, and the Ghana Cocoa Board, which has a total debt of GHS 32.5 billion.
The Cocoa Board’s debt situation is particularly dire, with GHS 9.7 billion due to be paid by the end of September 2025.
The President revealed that the Cocoa Board’s inability to supply 333,767 tonnes of cocoa in the 2023/2024 crop season has resulted in a revenue loss of US$ 840 million for both the Board and Ghanaian farmers.
An additional US$ 495 million will be lost when the remaining contracts are fulfilled.
President Mahama also touched on the energy sector’s financing challenges, which are primarily due to collection and system losses, non-compliance with the Cash Waterfall Mechanism, and legacy debts.
The financing shortfall has risen to approximately US$ 2.2 billion or GHS 34 billion for 2025.
Despite the daunting economic challenges, Mahama expressed his commitment to leading the government in taking necessary steps to reset the economy.
He outlined plans to complete outstanding structural reforms, implement corrective measures to restore fiscal discipline and debt sustainability and build buffers in the Sinking Fund to ensure prompt repayment of debt.
–BY Daniel Bampoe
