President John Mahama delivered a stark assessment of Ghana’s economy during his first State of the Nation Address of his second term, revealing a staggering public debt of GH₵721 billion alongside crippling liabilities in critical state-owned enterprises.
Describing the nation as “broken on many fronts,” Mahama attributed the crisis to years of financial mismanagement, warning that urgent restructuring and disciplined governance are needed to avert further collapse.
“We are saddled with staggering debts and glaring signs of almost deliberate—and, in some cases, reckless—mismanagement of our resources,” Mahama told lawmakers on Thursday. The debt figure, equivalent to roughly 84% of Ghana’s GDP, underscores a liquidity squeeze that has paralyzed public services and stalled infrastructure projects.
The President singled out the Electricity Company of Ghana (ECG), which owes GH₵68 billion, as emblematic of systemic failures. Chronic revenue leaks, unpaid bills, and aging infrastructure have left the utility company struggling to keep the lights on, with frequent power outages plaguing households and businesses.
Equally dire is the plight of the Ghana Cocoa Board (COCOBOD), the backbone of the nation’s cocoa sector, which faces a total debt of GH₵32.5 billion. A GH₵9.7 billion payment, due by September 2025, threatens the board’s ability to pay farmers and fund critical crop disease prevention programs. “COCOBOD was once the hope of cocoa farmers,” Mahama said. “Now, its balance sheet tells a story of neglect.”
The disclosures come amid rising public anger over inflation, which has hovered above 20% for months, and a depreciating cedi that has eroded purchasing power. Mahama acknowledged the toll on citizens but stopped short of detailing immediate relief measures, instead emphasizing long-term fiscal reforms.
Critics, however, questioned the administration’s capacity to steer recovery. Minority Leader Alexander Afenyo-Markin accused Mahama of “rehearsing old grievances” without actionable solutions. Analysts also noted that Ghana’s debt restructuring talks with the International Monetary Fund (IMF) have stalled, delaying access to a $3 billion bailout package.
Mahama vowed to prioritize transparency and accountability, pledging to audit state enterprises and recover misused funds. Yet for many Ghanaians, patience is wearing thin. “We hear about billions in debt, but our hospitals lack drugs and our schools are crumbling,” said Accra teacher Efua Mensah. “When will ‘responsible governance’ mean results?”
As the government prepares for a National Economic Dialogue in March, the stakes are existential. With debt servicing consuming nearly half of tax revenues, Mahama’s ability to stabilize Ghana’s finances—and restore public trust—will define his second term.
