President John Dramani Mahama has delivered a sobering assessment of Ghana’s economic state, warning that the nation is “broken on many fronts” due to unsustainable debt and financial mismanagement. Addressing Parliament in Accra on Thursday, February 27, during his first State of the Nation Address (SONA) of his second term, Mahama painted a grim picture of the country’s finances, stressing the urgent need for corrective measures.
Mahama revealed that Ghana’s public debt has ballooned to GHS721 billion, placing immense pressure on the economy and threatening the livelihoods of millions. He further detailed the troubling financial state of key state-owned enterprises, including the Electricity Company of Ghana (ECG) and the Ghana Cocoa Board (COCOBOD), both of which are burdened with significant liabilities.
“We are saddled with staggering debts and glaring signs of almost deliberate and, in some cases, reckless mismanagement of our resources,” Mahama stated.
The president did not mince words as he outlined the dire consequences of financial recklessness. He disclosed that ECG alone owes GHS68 billion, further exacerbating the crisis in Ghana’s energy sector. Meanwhile, COCOBOD, a vital institution supporting Ghana’s cocoa farmers, is struggling under a total debt of GHS32.5 billion, with GHS9.7 billion due by the end of September 2025.
“The financial health of our key state institutions is deteriorating at an alarming rate. The state of ECG and COCOBOD is just a reflection of a broader economic breakdown,” Mahama emphasized.
The former president pointed to years of mismanagement and poor financial planning as the root cause of the current economic turmoil, warning that without urgent intervention, the country could face severe economic hardship.
A Crippling Debt Burden
Ghana’s rising debt levels have been a source of concern for both local and international financial institutions. Analysts have repeatedly warned that the country’s debt-to-GDP ratio is unsustainable, making it difficult for the government to meet its financial obligations.
Mahama highlighted how the debt crisis has led to reduced funding for critical sectors such as healthcare, education, and infrastructure development. With most of the national revenue being channeled toward debt servicing, there is little room left for investments in projects that could improve the lives of Ghanaians.
“The rising debt, excessive borrowing, and misallocation of resources have weakened investor confidence and made it increasingly difficult to finance essential projects,” he noted.
He lamented the impact on social services, stating that hospitals are struggling with inadequate supplies, schools are facing funding shortages, and many public infrastructure projects have been abandoned due to lack of financing.
The Energy Crisis and Economic Stagnation
Mahama also addressed the ongoing challenges in Ghana’s energy sector, where ECG’s financial woes have contributed to persistent power outages and unreliable electricity supply.
“The electricity sector is in crisis. ECG’s financial instability has led to inefficiencies, delayed payments to power producers, and a deteriorating service that is affecting businesses and households alike,” he explained.
The energy crisis, he noted, has resulted in reduced productivity and job losses, further worsening the economic difficulties faced by Ghanaians. Small and medium-sized enterprises, which form the backbone of the economy, have been particularly hard-hit by inconsistent power supply and rising electricity costs.
“The private sector cannot thrive in an environment where power supply is uncertain, and costs of doing business continue to rise,” Mahama cautioned.
COCOBOD’s Struggles and the Fate of Cocoa Farmers
Ghana’s cocoa industry, a key driver of the country’s economy, is also feeling the strain of financial mismanagement. COCOBOD’s staggering debt has left cocoa farmers uncertain about their future, with delayed payments and inadequate support threatening their livelihoods.
“The cocoa industry is the backbone of our economy, but today, our farmers are struggling due to poor management and heavy debts at COCOBOD,” Mahama said.
Farmers have expressed concerns over the declining state of the sector, with many calling for urgent reforms to ensure fair pricing and better support for producers. Mahama pledged to work closely with stakeholders to revive the industry and restore confidence in Ghana’s cocoa exports.
The Path to Economic Recovery
Despite the grim outlook, Mahama expressed confidence in Ghana’s ability to overcome the current crisis. He outlined a series of measures aimed at stabilizing the economy, including improved fiscal discipline, enhanced revenue mobilization, and a crackdown on corruption and wasteful expenditure.
“The path forward requires tough but necessary decisions. We must realign our economic priorities, cut wasteful expenditures, and focus on initiatives that will create jobs and improve livelihoods,” he stated.
He reiterated his commitment to fostering transparency and accountability in governance, emphasizing that restoring confidence in the economy would require collective effort from both the government and citizens.
“Our economic recovery must be a national priority. Every Ghanaian has a role to play in ensuring that we move away from reckless financial management towards a future of sustainable growth and shared prosperity,” Mahama stressed.
He also called on Parliament and all stakeholders to support efforts to revive the economy, stressing that national unity and collective responsibility were essential in addressing the crisis.
“The task ahead is challenging, but it is not insurmountable. With determination, transparency, and accountability, we can put Ghana back on the path to progress,” he concluded.
Mahama’s remarks reflect growing concerns over Ghana’s financial health, with many economists warning of the long-term consequences of rising debt and fiscal mismanagement. His call for decisive action signals a renewed effort to address the economic challenges and restore confidence in the nation’s future.
