President Mahama Declares Ghana’s Economic Mess as Deeper Than Expected But Vows to Fix It—-Ghana’s economy is in deep crisis, says President John Dramani Mahama, who adds it is far worse than he anticipated before assuming office.
President John Mahama reveals the nation’s finances is in a very sorry state and hence he is not surprised at the unprecedented hardships Ghanaians are facing.
Mr. Mahama made the shocking revelation on Thursday during his maiden State of the Nation’s Address to Parliament.
“The state of our economy is not good. Our economy is in crisis and our people are suffering unprecedented hardships. Our economy is in dire state, and that is putting it mildly,” the president said.
To paint a vivid picture about the situation, the President revealed that Ghana’s public debt has ballooned to an alarming GHC 731 billion, with several state-owned enterprises drowning in debt. The Electricity Company of Ghana (ECG) owes GHC68 billion, while COCOBOD, the backbone of Ghana’s cocoa industry, is crippled by massive financial burdens.
Inflation remains very high, ending 2024 at 23.8%, above the 18% target set with the IMF. The Ghanaian cedi’s decline has been relentless, losing 19% of its value against the dollar in 2024, after an even sharper depreciation of 27.8% the previous year.
Other critical sectors of the economy such as energy, infrastructure, education, and others are also reeling under the economic mess. He attributes the current state of the economy to what he describes as reckless and mismanagement of the country’s resources.
“What we are seeing is the result of almost deliberate, and in some cases, reckless mismanagement of our resources,” Mahama lamented, adding that not even the constraints of an IMF program were enough to instill financial discipline in the previous administration.”
Despite the gloomy picture, President Mahama assured that he is determined and solution-driven, promising swift action to reverse the economic decline.
As part of his strategy, the government will convene a National Economic Dialogue on March 3rd and 4th to engage stakeholders in crafting a comprehensive recovery plan. This, he says, will be followed by the 2025 Budget presentation on March 11th, where the government will unveil its detailed economic strategy.
“I will fix the economic crisis confronting our country and reset it on the path of growth and prosperity,” the President assured Ghanaians adding that “My government, working with you and every Ghanaian, will solve the challenges because we have developed a plan with our people’s support.
“It is not my style to lament when confronted with challenges. My approach is to accept challenges and work hard to resolve them,” he stated.
The President says he has experienced an unanticipated difficult start, however, Ghanaians should keep faith in him as he and his team work tirelessly to turn around the fortunes of the ailing economy.
