BTA2023 President John Dramani Mahama has delivered a stark assessment of Ghana’s economic landscape, warning that the nation is facing a severe financial crisis due to excessive debt and mismanagement.
Presenting his first State of the Nation Address (SONA) in his second term to Parliament on Thursday, February 27, President Mahama highlighted Ghana’s deteriorating fiscal position, citing unsustainable debt levels and the collapse of key state institutions as major contributors to the crisis.
Escalating Debt and Struggling State Enterprises
The President revealed that Ghana’s public debt has surged to GHS721 billion, placing immense pressure on the economy. He also drew attention to the financial distress of major state-owned enterprises, including the Electricity Company of Ghana (ECG) and the Ghana Cocoa Board (COCOBOD), both of which are grappling with crippling debt burdens.
“We are burdened with overwhelming debts and clear evidence of reckless mismanagement of our resources,” Mahama stated.
“In addition to our public debt of GHS721 billion, several state enterprises are also in deep financial trouble. ECG owes GHS68 billion, while COCOBOD—once the backbone of our cocoa industry—is struggling with a debt of GHS32.5 billion, with GHS9.7 billion due for repayment by September 2025.”
Call for Immediate Economic Reforms
President Mahama’s address underscored the urgency of financial restructuring and responsible governance to stabilize the economy. He called on policymakers and stakeholders to collaborate in implementing immediate and decisive reforms to prevent further economic decline.
As Ghana navigates these fiscal challenges, the government faces mounting pressure to introduce measures that curb wasteful spending, enhance revenue generation, and restore investor confidence in the nation’s financial system.
