President John Dramani Mahama has delivered a grim assessment of Ghana’s economic and social conditions, declaring that the nation is in crisis. Addressing Parliament on Thursday, February 27, during his first State of the Nation Address of his second term, Mahama painted a stark picture of the country’s challenges, describing the economic hardships as unprecedented.
“I am sad to report that the state of our nation is not good,” he stated. “Our people are enduring significant hardships, businesses are struggling, and our economy is in dire straits.”
The president emphasized that urgent measures were needed to restore stability. He pointed to Ghana’s severe economic downturn, characterized by rising inflation, a depreciating currency, and an unsustainable debt burden. He highlighted the necessity of the upcoming National Economic Dialogue, scheduled for March 3rd and 4th, as a critical platform for national stakeholders to discuss solutions. Additionally, the Finance Minister is set to present the 2025 budget to Parliament on March 11, providing a comprehensive overview of the economic challenges and the government’s strategies to address them.
Mahama’s candid admission of the country’s predicament was met with mixed reactions, with many appreciating his transparency while others remained anxious about the road ahead. The president made it clear, however, that he would not resort to finger-pointing but instead focus on solutions.
“Mr. Speaker, it is not my style to lament and shift blame when confronted with challenges,” he stated firmly. “I have therefore not come here to lament on the state of our country, though there is much to lament about. I stand here today with a renewed commitment to tackling these challenges head-on.”
A key focus of Mahama’s speech was Ghana’s debt crisis. He revealed that the country’s debt servicing obligations over the next four years would amount to GHS280 billion, with GHS150 billion allocated for domestic debt and GHS130 billion for external debt repayments.
“Our debt situation is alarming,” he said. “We must urgently restructure and implement prudent fiscal policies to prevent further deterioration.”
The financial distress extends beyond national debt, affecting state-owned enterprises as well. The president highlighted the worsening financial position of institutions such as the Electricity Company of Ghana (ECG) and the Ghana Cocoa Board (COCOBOD), both of which are burdened with unsustainable debt.
“The ECG owes GHS68 billion, while COCOBOD’s total debt stands at GHS32.5 billion, with GHS9.7 billion due for payment by September 2025,” Mahama disclosed. “These figures underscore the reckless financial mismanagement of recent years.”
Mahama also addressed Ghana’s Sinking Fund, a reserve meant to facilitate debt repayments, revealing that it held only $64,000 and GHS143,000, contradicting claims by the previous Akufo-Addo administration that they left behind substantial buffers.
“There have been claims that buffers were left for ongoing debt repayments in 2025,” Mahama stated. “The reality, however, is starkly different. Our Sinking Fund, which was supposed to ease the burden of debt servicing, has been virtually emptied.”
The economic crisis has taken a toll on businesses and households alike. Inflation has significantly eroded the purchasing power of citizens, and the Ghanaian Cedi continues to experience sharp depreciation, making imports more expensive. The private sector has struggled under the weight of high interest rates, erratic power supply, and an unfavorable tax regime that has stifled growth.
“Our private sector, which should be the engine of growth, is on the brink of collapse,” Mahama said. “We must take bold steps to revive industries, support small and medium-sized enterprises (SMEs), and ensure that businesses can thrive in a stable economic environment.”
Beyond the economy, Mahama expressed concerns over the deterioration of public services. He noted that Ghana’s healthcare system is under immense strain, with hospitals facing severe shortages of medical supplies and delays in essential projects due to a lack of funding.
“Our healthcare system is struggling, our schools are underfunded, and our roads remain in deplorable conditions,” Mahama stated. “The mismanagement of public resources has had a direct impact on the quality of life for our citizens.”
Despite the grim reality, Mahama reaffirmed his commitment to turning the situation around. He outlined his administration’s approach to economic recovery, including:
- Enhancing domestic revenue mobilization to reduce over-reliance on external borrowing.
- Implementing strict fiscal discipline to curb excessive government expenditure.
- Investing in key sectors such as agriculture, manufacturing, and technology to drive sustainable growth.
- Restoring investor confidence by ensuring transparency, accountability, and good governance.
The president acknowledged that the road to recovery would not be easy but urged Ghanaians to remain hopeful. He called on all political leaders, civil society organizations, and the private sector to work together in rebuilding the nation.
“We cannot afford to be divided in the face of this crisis,” Mahama said. “Our nation requires unity, resilience, and collective action. We must make the difficult but necessary decisions to ensure that future generations inherit a stable and prosperous Ghana.”
Mahama also assured the public that his government would work closely with international financial institutions and development partners to secure debt relief and restructuring agreements that would provide the country with some fiscal breathing room.
“We are engaging with international partners to negotiate better terms for our debt obligations,” he revealed. “At the same time, we must take responsibility for our financial management and ensure that every Cedi spent yields tangible results for the people.”
The speech resonated with many Ghanaians who have been grappling with economic difficulties. Citizens have voiced concerns over rising unemployment, declining income levels, and a general sense of economic instability. Many are hopeful that Mahama’s administration will deliver on its promise to restore stability and prosperity.
In the coming months, all eyes will be on the government’s implementation of key policies and whether they will yield the desired economic recovery. The upcoming National Economic Dialogue and the Finance Minister’s budget presentation will serve as critical moments in shaping the country’s financial future.
Mahama’s message was clear: Ghana is in crisis, but with decisive leadership, fiscal responsibility, and a commitment to the people, the country can recover. The task ahead is monumental, but the president remains resolute in his determination to steer the nation toward a brighter future.
