President John Dramani Mahama has delivered a sombre assessment of Ghana’s economic condition describing the nation as “broken on many fronts” due to excessive debt and financial mismanagement.
Speaking in Parliament during his first State of the Nation Address (SONA) in his second term on Thursday, 27th February, he highlighted the nation’s economic struggles, attributing them to unsustainable debt levels and poor governance of state institutions.
Mr Mahama revealed that Ghana’s public debt has escalated to GH¢721 billion, posing a severe threat to the country’s financial stability.
He expressed concern over the dire state of key state-owned enterprises, particularly the Electricity Company of Ghana (ECG) and the Ghana Cocoa Board (COCOBOD), both of which are burdened with significant debt and struggling to sustain their operations.
“We are burdened with staggering debts and clear evidence of, in some cases, deliberate and reckless mismanagement of our resources,” Mahama stated.
“The national debt now stands at an alarming GH¢721 billion, while several state-owned enterprises are also deep in debt, worsening our economic woes.”
He further disclosed that ECG alone has accumulated a debt of GH¢68 billion, raising concerns about its ability to provide reliable electricity services.
Meanwhile, COCOBOD, a vital institution in Ghana’s cocoa industry, owes GH¢32.5 billion, with GH¢9.7 billion due for repayment by September 2025.
The president warned that this financial crisis is not only a sign of poor economic management but also a serious threat to the well-being of ordinary citizens.
He emphasised the urgent need for comprehensive financial restructuring, improved fiscal discipline, and transparent governance to stabilise the economy and prevent further deterioration.
The President assured Ghanaians that his administration is committed to addressing these challenges and implementing policies aimed at restoring economic confidence.
He reaffirmed his government’s dedication to prudent financial management, ensuring that national resources are utilised effectively for long-term growth and stability.