President John Dramani Mahama has vowed to fulfill all debt obligations to bondholders, promising repayment “to the last pesewa” despite Ghana’s strained economic climate.
Delivering his first State of the Nation Address on February 27, 2025, Mahama sought to calm investor anxieties fueled by the nation’s financial instability, emphasizing his administration’s resolve to honor commitments even as citizens grapple with rising costs and stagnant growth.
The president placed partial blame for the crisis on what he called a “crushing debt legacy” from the previous New Patriotic Party (NPP) government, disclosing that the energy sector alone inherited GHC 70 billion in liabilities. “Agencies in the sector are struggling to stay afloat,” he said, underscoring the ripple effects of unpaid debts on critical infrastructure. While acknowledging widespread public hardship, Mahama outlined plans to revive the economy through what he termed a “resetting agenda”—a mix of structural reforms, job creation, and sustainable development initiatives. Critics, however, question how these measures will diverge from past policies given tighter fiscal constraints.
In a bid to foster cross-party collaboration, Mahama urged opposition NPP leaders to join upcoming national economic talks, indirectly referencing their 2014 boycott of the Senchi Forum, a landmark dialogue during his earlier presidency. “Economic recovery cannot be a partisan project,” he asserted, framing cooperation as essential to navigating the crisis. The appeal signals a delicate balancing act for Mahama, who must reconcile investor assurances with domestic pressures to ease living costs.
Financial experts remain split on the feasibility of his dual pledges. With Ghana’s debt-to-GDP ratio nearing 85% and inflation stubbornly high, some argue that prioritizing bondholder repayments could clash with urgent social spending needs. Others contend that restoring investor trust is non-negotiable for stabilizing the cedi and securing future financing. The dilemma reflects a broader challenge for debt-laden emerging economies: reassuring global markets while shielding vulnerable populations from austerity’s harshest blows.
As the government prepares to unveil detailed recovery plans, analysts warn that Ghana’s path to stability hinges on transparent policymaking and political compromise. Mahama’s resetting agenda, while ambitious, faces a litmus test in bridging the gap between international creditor demands and the daily realities of Ghanaians. Whether his administration can translate rhetoric into equitable growth—or risk deepening public disillusionment—remains a defining question for the nation’s economic future.
