President John Dramani Mahama has delivered a stark appraisal of Ghana’s economic condition, warning that the country is “broken on many fronts” due to mounting debt and financial mismanagement.
In his first State of the Nation Address since returning to office, President Mahama outlined the scale of the country’s fiscal deterioration, revealing that Ghana’s public debt has reached GHS 721 billion, placing severe strain on the economy.
He pointed to unsustainable liabilities at key state-owned enterprises, notably the Electricity Company of Ghana (ECG) and the Ghana Cocoa Board (COCOBOD), both of which are grappling with heavy debt burdens.
“We are saddled with staggering debts and glaring signs of almost deliberate and, in some cases, reckless mismanagement of our resources,” President Mahama told Parliament on Thursday, February 27.
The power utility ECG now owes GHS 68 billion, while COCOBOD’s total liabilities stand at GHS 32.5 billion, with GHS 9.7 billion payment falling due by September 2025.
The financial instability of these institutions raises fresh concerns over the sustainability of Ghana’s economic model, particularly as the country struggles with fiscal imbalances and low investor confidence.
President Mahama’s remarks set the stage for policy debate ahead of the 2025 Budget presentation on March 11, in which the Government is expected to outline measures aimed at stabilising public finances and restoring macroeconomic stability.
