Ghana’s Economy in Crisis – Mahama Reveals GHS721 Billion Debt.

 

In a candid and sobering address to Parliament on Thursday, February 27, 2025, President John Dramani Mahama painted a grim picture of Ghana’s economic landscape, describing the nation as “broken on many fronts” due to rising debt and financial mismanagement. This address marked his first State of the Nation Address (SONA) in his second term, and his revelations highlighted the urgent need for financial restructuring and responsible governance.

President Mahama revealed that Ghana’s public debt has skyrocketed to GHS721 billion, exerting immense pressure on the nation’s economy. According to him, the burden of unsustainable debt threatens the country’s financial stability and calls for immediate intervention to prevent further deterioration.

“We are saddled with staggering debts and glaring signs of almost deliberate and, in some cases, reckless mismanagement of our resources,” Mahama stated in his address.

Beyond the national debt, the President highlighted the struggling state of key public institutions. He disclosed that major state-owned enterprises (SOEs) like the Electricity Company of Ghana (ECG) and the Ghana Cocoa Board (COCOBOD) are drowning in debt.

He revealed that ECG currently owes GHS68 billion, making it difficult for the utility company to maintain efficient service delivery and infrastructure development.

Meanwhile, Ghana COCOBOD, a crucial institution supporting the country’s cocoa farmers, faces a total debt of GHS32.5 billion, with GHS9.7 billion due by the end of September 2025.

“The hope of cocoa farmers is under serious threat as COCOBOD faces a crushing debt burden that could destabilize the sector if urgent measures are not taken,” Mahama emphasized.

The President’s speech highlighted the need for immediate action to address the economic challenges. He called for comprehensive financial reforms to restructure the country’s debt and ensure transparency and accountability in the management of state resources.

His administration, he assured Parliament, is committed to implementing tough but necessary measures to restore economic stability and alleviate the burdens on ordinary Ghanaians.

President Mahama concluded by urging all stakeholders—government agencies, private sectors, and citizens—to work together to navigate the nation out of the economic crisis.

“As a country, we must confront these challenges head-on, with boldness and collective responsibility. Ghana’s economic future depends on the choices we make today,” he stated.

The President’s revelations come at a crucial time, as Ghanaians continue to face rising living costs, unemployment, and other economic hardships. The coming months will be a critical test of his administration’s ability to implement reforms and restore public confidence in the nation’s economic direction.