President Mahama Addresses Deteriorating Economic Situation in State of the Nation Speech
In his first State of the Nation address, President John Mahama described a troubling economic situation in Ghana, revealing a meager $64,000 balance in the Sinking Fund and substantial debt challenges. He projected a financing shortfall of $2.2 billion for 2025 and pointed to stalled infrastructure projects, emphasizing the need for urgent and collaborative action to restore economic stability. Mahama committed to transparency and accountability as he seeks to address these crises.
During his inaugural State of the Nation address on February 27, 2025, President John Mahama highlighted the deteriorating state of the nation’s economy, citing a lack of adequate funds in the Debt Service Reserve Account, or Sinking Fund, which currently holds only $64,000. He reported that the economic conditions have resulted in significant hardships for citizens and the economy is in crisis.
President Mahama noted that the energy sector is grappling with financing difficulties attributed to collection losses and outstanding debts, with a financing gap of approximately $2.2 billion anticipated for 2025. He emphasized the severe limitations on the financial sector, exacerbated by prior governmental policies that failed to sustain economic stability. Despite previous efforts to manage the economy, he indicated that the current debt servicing obligations are staggering, at an estimated GH¢280 billion over the next four years.
He mentioned the stalling of numerous infrastructure projects, amounting to $2.95 billion that have been disrupted due to debt defaults, leading to a cost overrun of GH¢15 billion. Mahama announced upcoming National Economic Dialogue sessions on March 3rd and 4th, anticipating these will clarify Ghana’s present economic challenges. Additionally, he will present the financial year’s budget to Parliament on March 11th.
The President committed to addressing the numerous challenges facing the nation, asserting that the electorate expects him to focus on solutions rather than lamentation. Emphasizing his previous successes, he stated his intention to alleviate the current economic crises, recalling his past success regarding power supply stability. Mahama acknowledged the extent of the current issues, describing the economy as being in severe disrepair.
He specifically targeted reckless debt accumulation as a primary concern and criticized the previous administration’s mismanagement of economic resources, which contributed to a high inflation rate and depreciating currency. He noted alarming debts of various State-Owned Enterprises, including ECG and COCOBOD, indicating a dire need for restructuring and stabilization. Mahama lamented lost revenue opportunities for cocoa farmers due to delayed supply and the consequential debt associated with infrastructure projects, reinforcing the significant challenges that lay ahead.
Despite these hurdles, President Mahama expressed his determination to steer the country towards recovery and progress, stressing the necessity for collaboration with citizens and legislative members to rebuild a prosperous Ghana.
In conclusion, President John Mahama’s first State of the Nation address underscores a grim economic reality for Ghana, highlighting severe financial deficits, stalled projects, and overwhelming debt. He aims to address these pressing issues through forthcoming dialogues and asserted his commitment to economic recovery. Mahama’s acknowledgment of the past and his focus on teamwork present a hopeful path forward amidst considerable challenges.
Original Source: www.ghanabusinessnews.com
