President Mahama Warns of Severe Economic Challenges Ahead for Ghana

President John Dramani Mahama forecasted that Ghana’s debt servicing will reach GHC280 billion over the next four years, with GHC150 billion for domestic and GHC130 billion for external debt. He also revealed a GHC34 billion shortfall in the energy sector financing for 2025, necessitating urgent intervention to stabilize the economy.

In a recent address, President John Dramani Mahama provided a stark overview of Ghana’s economic challenges, forecasting that debt servicing will reach GHC280 billion over the next four years. This figure comprises GHC150 billion dedicated to domestic debt and GHC130 billion allocated to external debt obligations. Mahama expressed significant concern regarding the financial sector, which he stated continues to struggle, despite previous administrations investing GHC29.9 billion in a cleanup effort to stabilize it.

Furthermore, President Mahama highlighted the critical financial difficulties plaguing Ghana’s energy sector. He disclosed that the sector’s financing shortfall has escalated to approximately $2.2 billion, equating to about GHC34 billion for the year 2025. He identified key issues as collection and system losses, non-compliance with the cash waterfall mechanism, and outstanding legacy debts.

The President underscored the urgent necessity for strategic interventions to mitigate this financial shortfall. He emphasized the importance of reducing the shortfall to sustainable levels, with the ultimate goal of completely eliminating it. Mahama’s address calls for immediate action to address these pressing financial concerns in Ghana’s sectors.

In summary, President Mahama outlined a troubling forecast for Ghana’s economic situation, indicating severe challenges in both debt servicing and the energy sector. With a forecasted GHC280 billion in debt servicing and a burgeoning financing shortfall of GHC34 billion in the energy sector, immediate measures are imperative. The call for restructuring and innovative solutions highlights the importance of proactive governance in addressing these financial issues.

Original Source: www.gbcghanaonline.com