Credit: Kekeli K. Blamey
President John Dramani Mahama has assured Ghanaians that his administration is committed to restoring macroeconomic stability and steering the country towards growth, despite inheriting a dire financial situation from the previous government.
In his 2025 State of the Nation Address to Parliament, President Mahama acknowledged the significant economic challenges facing the country, including a debt stock of GH¢721 billion and a financing shortfall of GH¢34 billion in the energy sector.
However, he expressed confidence in his administration’s ability to turn things around, outlining several fiscal measures aimed at reducing debt, rebuilding reserves, and restoring investor confidence.
These measures include implementing strict fiscal discipline and prudent debt management strategies, restoring buffers in the Sinking Fund to manage debt obligations, and honoring domestic debt coupon payments.
President Mahama also announced that his administration has signed a Memorandum of Understanding with the Official Creditor Committee to formalize agreements on debt treatment, which he described as a crucial step towards restoring long-term debt sustainability.
The president’s address comes amid significant economic challenges, including revenue losses for Ghanaian farmers due to a contract rollover decision taken by the previous administration.
Despite these challenges, President Mahama remains optimistic about Ghana’s ability to recover through fiscal discipline, debt restructuring, and structural reforms.
He also emphasized the need for a National Economic Dialogue to build consensus on economic reforms and create a fair and equitable economy, urging opposition parties to participate in the process.
“We must work together to restore our economy and create prosperity for all Ghanaians,” President Mahama said.
The president’s address has been welcomed by some economists, who believe that his administration’s fiscal measures are a step in the right direction.
However, others have expressed concerns about the government’s ability to implement these measures, given the significant economic challenges facing the country.
The government’s economic recovery plan is expected to be implemented over the next few months, with the aim of restoring macroeconomic stability and promoting economic growth.
