President John Dramani Mahama has described Ghana as “broken on many fronts” due to unsustainable debt burdens and fiscal irresponsibility. Addressing Parliament on Thursday, February 27th, during his inaugural State of the Nation Address in his second term, he highlighted the country’s economic struggles. He identified unsustainable debt and poor governance of state institutions as the primary causes, stressing the need for urgent reforms. Ghana’s public debt has skyrocketed to GH¢721 billion, posing a severe threat to financial stability.
Mahama underscored the financial struggles of key state-owned enterprises, particularly the Electricity Company of Ghana (ECG) and the Ghana Cocoa Board (COCOBOD), which are drowning in debt. ECG’s debt has ballooned to GH¢68 billion, while COCOBOD owes GH¢32.5 billion, with GH¢9.7 billion due by September 2025. He warned that this massive debt burden threatens the energy sector and could lead to power outages. The situation, he said, reflects not just poor economic governance but also reckless mismanagement of national resources, worsening the plight of ordinary Ghanaians.
The President emphasized the urgent need for financial system reforms, stricter fiscal management, and accountable governance to halt economic decline. He reaffirmed his administration’s commitment to addressing these challenges and implementing policies to restore economic confidence and stability. His pledge signals a determination to revitalize the economy and secure a stronger financial future for all Ghanaians.
