Accra, Ghana – February 27, 2025 – President John Dramani Mahama has unveiled a comprehensive strategy to address Ghana’s staggering public debt of GHS 721 billion, as he delivered his first State of the Nation Address since returning to office. He attributed the nation’s dire economic situation to excessive borrowing and mismanagement by the previous administration, pledging swift action to restore financial stability.
Inherited Economic Crisis
Mahama painted a grim picture of Ghana’s economic outlook, citing high inflation (23.8% in 2024), a depreciating cedi, and a struggling private sector. The country’s debt burden, he said, has placed immense pressure on government finances, limiting its ability to fund critical infrastructure, health, and education projects.
“We have inherited a broken economy, and the numbers do not lie,” Mahama stated. “But let me assure Ghanaians that we will take the tough decisions necessary to stabilize the economy and set it on a path to sustainable growth.”
Debt Restructuring and Fiscal Discipline
To manage Ghana’s ballooning debt, the President announced plans to renegotiate repayment terms with international creditors while implementing a homegrown fiscal consolidation plan. The government will also prioritize critical expenditures, ensuring that public funds are channeled into productive sectors rather than recurrent costs.
A National Economic Dialogue will be held in the coming months, bringing together economic experts, policymakers, and private sector leaders to design a roadmap for recovery.
Cutting Government Expenditure
In a major cost-cutting move, Mahama revealed that his administration will reduce the number of ministers to 60, a decision aimed at curbing excessive government spending. Additionally, non-essential expenditures will be slashed, and a strict budget monitoring system will be introduced to prevent financial leakages.
“We will lead by example and ensure that public funds are used efficiently,” he emphasized.
Boosting Revenue and Strengthening Tax Collection
Mahama’s government also plans to expand Ghana’s tax base while improving efficiency in revenue collection. However, he assured the public that new tax policies will not overburden ordinary Ghanaians.
“We will eliminate loopholes, enhance digital tax collection systems, and ensure fairness in the tax structure,” he said.
Stimulating Economic Growth
To revive economic growth, the government will focus on key sectors such as agriculture, manufacturing, and energy. Programs like the Agriculture for Economic Transformation Agenda (AETA) and the Feed Ghana Programme will be expanded to boost local food production, reduce imports, and create jobs.
Additionally, the government is set to increase investment in renewable energy and infrastructure development, ensuring that growth is both sustainable and inclusive.
A Call for National Unity
President Mahama concluded his address by urging Ghanaians to rally behind his administration’s recovery plan. “Fixing this economy will require patience, resilience, and a collective effort. Together, we will overcome these challenges and build a stronger Ghana,” he declared.
With the country facing a tough road ahead, all eyes are now on the government to deliver on its promises and steer Ghana toward economic stability.
