President John Mahama delivered a stark appraisal of Ghana’s economic turmoil during his first State of the Nation Address (SONA) of his second term on February 27, 2025, declaring the country “broken on many fronts” due to unsustainable debt levels and systemic mismanagement.
Speaking to Parliament, Mahama revealed that Ghana’s public debt has ballooned to a staggering ₵721 billion, crippling state institutions and threatening long-term stability.
“We are saddled with staggering debts and glaring signs of almost deliberate and, in some cases, reckless mismanagement of our resources,” Mahama stated, citing dire financial straits at key agencies. The Electricity Company of Ghana (ECG) alone owes ₵68 billion, while the Ghana Cocoa Board (COCOBOD) struggles under a ₵32.5 billion debt burden, with ₵9.7 billion due by September 2025. These figures underscore a pattern of fiscal decay that has left critical sectors teetering on collapse.
The address painted a grim picture of institutional neglect. Once-profitable state enterprises now face liquidity crises, hampering their ability to deliver essential services. ECG’s massive liabilities, for instance, threaten nationwide power reliability, while COCOBOD’s debt imperils Ghana’s cocoa sector—a cornerstone of the economy. Analysts warn that without urgent intervention, these challenges could spiral into broader economic paralysis.
Mahama’s speech framed the crisis as a consequence of both global pressures and domestic failings. While acknowledging external shocks like fluctuating commodity prices, he emphasized “reckless” local decision-making as a primary driver of the meltdown. “This is not merely a fiscal challenge—it is a crisis of accountability,” he asserted, pledging to prioritize financial restructuring and stricter oversight.
The revelations have intensified scrutiny of Ghana’s governance frameworks. Critics argue that successive administrations have prioritized short-term political gains over sustainable planning, allowing corruption and inefficiency to flourish. “These debts didn’t accumulate overnight,” noted Accra-based financial Journalist Roger A. Agana. “Years of weak oversight and opaque contracting have brought us here.”
Despite the grim outlook, Mahama outlined no immediate rescue package, instead urging bipartisan cooperation to “rebuild trust and discipline” in public finance. His call for austerity measures and institutional reforms, however, faces skepticism from a public weary of unfulfilled promises. With inflation lingering in double digits and the cedi under persistent pressure, ordinary Ghanaians brace for tougher times.
As Parliament debates next steps, the address has reignited demands for transparency in debt management and sharper consequences for mismanagement. For now, Mahama’s grim diagnosis hangs over the nation—a stark reminder that Ghana’s path to recovery will require more than rhetoric. The true test lies in turning pledges of accountability into actionable change.
