By: Belinda Nketia
In his State of the Nation Address to Parliament on February 27, 2025, President John Dramani Mahama painted a stark picture of Ghana’s economy, highlighting a deepening crisis driven by overwhelming debt and financial mismanagement.
While expressing his commitment to addressing the crisis, President Mahama acknowledged the challenging nature of the situation.
“Our economy is in crisis, and Ghanaians are suffering,” “I will fix Ghana’s economic crisis and reset it on the path of growth and prosperity,” he assured the nation.
The president revealed that Ghana is currently saddled with a colossal debt load, some of which he described as a result of “almost deliberate and reckless management of resources.” Among the most pressing concerns are the rising debts of some state-owned enterprises.
The Electricity Company of Ghana (ECG), for instance, owes a staggering GH¢68 billion, while Ghana COCOBOD, the country’s key cocoa body, faces a GH¢32.5 billion debt. The debt burden has left critical sectors of the economy struggling, with an urgent need for reforms and fiscal discipline.
President Mahama noted that despite Ghana’s participation in an International Monetary Fund (IMF) programme, the previous economic managers failed to exercise adequate fiscal prudence. Inflation, which was expected to reach 14% by the end of 2024, soared to an alarming 23.8%, further exacerbating the country’s financial woes.
Additionally, the Ghana cedi has continued its downward spiral, contributing to the country’s mounting economic challenges.
The energy sector, one of the key pillars of Ghana’s economy, is also grappling with significant financial difficulties, largely due to inefficient collections and legacy debts. The total financing shortfall for 2025 has surged to 34 billion Ghana cedis (approximately 2.2 billion dollars), with urgent measures needed to curb this deficit and restore stability.
Despite the overwhelming nature of the crisis, President Mahama reiterated his determination to lead the government through these difficult times. He emphasized that his government, in collaboration with Parliament and the people of Ghana, has developed a comprehensive plan to tackle the economic challenges.
“When I decided to run for president again, I knew the country was facing huge problems, but nothing could have prepared me for the depth of our financial situation,” Mahama reflected. He also highlighted that the true extent of the country’s economic woes only became apparent after conducting a thorough assessment of the nation’s financial books.
In the coming days, Ghana is set to host a National Economic Dialogue on March 3rd and 4th, where the real state of the economy will be discussed. Following that, on March 11, the Minister of Finance will present the 2025 budget estimate to Parliament, providing further insights into how the government plans to address the economic challenges.
Despite the gloomy outlook, President Mahama outlined in address, a message of hope and resilience. “Notwithstanding this gloomy background, I remain committed to leading this government and taking every necessary step to reset our economy, get things back on track, and work with the good people of our country to build the Ghana we want” he said.
