President John Mahama confronted Ghana’s dire fiscal realities head-on during his first State of the Nation Address (SONA) since reclaiming office, admitting the economy is “in crisis” but vowing aggressive reforms to stabilize it.
With public debt soaring to GHȼ721 billion (approximately $60 billion) and inflation eroding purchasing power, Mahama outlined a recovery plan anchored by austerity, tax reforms, and infrastructure investment—though skeptics warn the path ahead remains fraught with risks.
“We inherited a nation in financial distress,” Mahama told lawmakers on Thursday, citing crippling debts at state-owned enterprises like the Electricity Company of Ghana (ECB), which owes GHȼ68 billion, and the Ghana Cocoa Board (COCOBOD), saddled with GHȼ32.5 billion in liabilities. “But with divine guidance and the people’s mandate, I declare today: We will fix this crisis and reset Ghana’s trajectory.”
Central to Mahama’s strategy is slashing government bloat. His administration will cap ministerial appointments at 60—a 35% reduction from previous governments—to curb spending. He also pledged to “rationalize” Ghana’s contentious tax regime, which businesses argue stifles growth, while boosting revenue through tighter enforcement and export incentives. A National Economic Dialogue in March will seek input from economists, unions, and industry leaders on additional measures.
Critics, however, note past failures to rein in debt. Ghana’s debt-to-GDP ratio has ballooned to 84%, with interest payments consuming 47% of tax revenue. “Promising fiscal discipline is easy,” said Accra-based financial journalist Roger A. Agana. “But without tackling systemic corruption and SOE inefficiencies, austerity alone won’t heal this hemorrhage.”
Mahama’s “Big Push” policy—a $10 billion infrastructure plan targeting roads, ports, and energy—aims to spur job creation and productivity. Coupled with a “24-Hour Economy” initiative to maximize industrial output, the government hopes to revive growth. Yet funding remains unclear. While Mahama reaffirmed cooperation with the IMF on debt restructuring, the program’s conditions could clash with his spending ambitions.
The Cocoa Board’s struggles underscore broader vulnerabilities. COCOBOD’s GHȼ9.7 billion debt payment due by September 2025 threatens farmer payments and export capacity, risking further sectoral collapse. “Cocoa is Ghana’s golden goose,” remarked agricultural economist Dr. Kojo Ahene-Nsiah. “If COCOBOD defaults, the ripple effect could devastate rural economies.”
Political opponents dismissed Mahama’s pledges as recycled ideas. “Ghanaians have heard these promises before,” said Nana Akomea, spokesperson for the New Patriotic Party. “Cutting ministers saves pennies compared to the billions lost through mismanagement.”
For citizens, patience wears thin. Inflation, though down from a 2023 peak of 54%, remains at 23%, while the cedi has lost 15% against the dollar this year. “Prices change daily,” said market trader Ama Serwah in Kumasi. “We need action, not speeches.”
As Mahama’s team prepares for March’s dialogue, the stakes transcend economics. With youth unemployment near 40% and public trust in institutions eroding, his ability to deliver “inclusive growth” could define Ghana’s stability—and his legacy. “The crisis is deep, but not insurmountable,” Mahama asserted. Yet for millions, hope hinges on execution, not rhetoric.
