President John Dramani Mahama, in his first State of the Nation Address (SONA) on Thursday, February 27, 2025, painted a sobering picture of Ghana’s economic challenges while outlining his administration’s commitment to recovery and fiscal discipline.
Addressing Parliament, President Mahama emphasized the country’s mounting debt burden, stating that in the next four years, Ghana’s debt servicing costs will amount to GH¢280 billion, comprising GH¢150 billion for domestic debt and GH¢130 billion for external debt servicing. He underscored how this “catastrophic debt position” has significantly hampered infrastructure development, with 55 stalled projects valued at $2.95 billion due to debt defaults and restructuring. These delays, he added, will likely lead to a cost overrun of approximately GH¢15 billion.
Despite the grim economic outlook, President Mahama reassured Ghanaians of his administration’s commitment to resetting the economy. “I remain committed to leading this government and taking every necessary step to reset our economy, getting things back on track, and working with the good people of our country to build the Ghana we want,” he said.
To restore fiscal discipline and ensure debt sustainability, the government will double its efforts to complete outstanding structural reforms. These measures, to be implemented through the national budget, aim to stabilize the economy and improve public finances.
The President also highlighted ongoing engagements with the International Monetary Fund (IMF), noting that Ghana is preparing for the fourth review of the IMF-supported program, scheduled between April 2 and April 15, 2025. The IMF Executive Board is expected to approve this review in June 2025.
Additionally, Mahama assured Parliament of his administration’s commitment to prudent debt management, including building financial buffers in the sinking fund to facilitate the timely repayment of both domestic and external debt maturities.
His address sets the tone for his government’s economic agenda, balancing the challenges of high debt levels with a roadmap for recovery and fiscal responsibility.
Norvan Reports