By: Franklin ASARE-DONKOH
President John Dramani Mahama has painted a gloomy picture of the current state of Ghana’s economic situation.
According to him, in the next four years, Ghana’s debt servicing will amount to Ghc280 billion, and this comprises Ghc150 billion for domestic debt and Ghc130 billion in external debt servicing.
Delivering the State of the Nation Address (SoNA) on the floor of Parliament in Accra on Thursday, February 27, 2025, President Mahama said, “Mr. Speaker, our financial sector continues to struggle despite the reportedly spending of GHS29.9 billion on the financial sector cleanup exercise to date by the previous administration.
What is troubling is that in the next four years our debt servicing will amount to GHS280 billion, and this comprises 150 billion for domestic debt and 130 billion in external debt servicing.”
President Mahama also touched on the severe financial challenges facing Ghana’s energy sector.
He revealed that the financing shortfall for the energy sector has risen significantly to approximately $2.2 billion or Ghc34 billion for the year 2025.
The energy sector, according to him, faces serious financial challenges primarily due to collection and system losses, non-compliance with the cash waterfall mechanism, and legacy debts.
President Mahama emphasised the urgent need for measures to reduce this shortfall to sustainable levels and ultimately eliminate it.
