One of the most pressing concerns touched on during the presentation of the State of the Nation Address was Ghana’s debt position, which has significantly impacted critical infrastructure projects. Currently, 55 major development projects have stalled due to debt defaults and restructuring delays, resulting in an undisbursed total of US$2.95 billion. The cost overruns associated with these delays are projected to amount to approximately GHS 15 billion, further exacerbating economic stagnation.
Despite this challenging backdrop, President Mahama assured Ghanaians of his unwavering commitment to leading an economic reset, implementing structural reforms, and working collaboratively to build a resilient and thriving economy.
“The economic crisis confronting our country will be fixed. I will reset Ghana’s economy on the path of growth and prosperity,” President Mahama stated, underscoring his government’s strategic plans to revitalize the country’s fiscal landscape.
To counteract the economic downturn, the government is doubling efforts to complete ongoing structural reforms aimed at restoring fiscal discipline and ensuring debt sustainability. The upcoming national budget will introduce corrective measures designed to stabilize public finances while addressing key economic weaknesses.
While Mahama’s commitment to economic reform is evident, the feasibility of his plan remains a subject of debate. Economic analysts stress the importance of sustained policy consistency, reduction of fiscal leakages, and strengthened institutional frameworks to ensure long-term stability.
A cornerstone of this strategy is Ghana’s ongoing participation in the IMF-supported Programme, which is set for its fourth review from April 2 to April 15, 2025. The IMF Executive Board’s anticipated approval in June 2025 will play a crucial role in providing policy guidance and financial assistance to help navigate Ghana out of the crisis.
“We are doubling our efforts to complete all outstanding structural reforms. Through the budget, we will implement corrective measures to restore fiscal discipline and debt sustainability. We are also working towards completing the upcoming fourth review of the IMF-supported Programme”. President Mahama noted.
To ensure the country meets its debt obligations, the government has taken decisive steps in debt management, including bolstering financial buffers in the Sinking Fund. A notable success in this effort was the GHS 6.081 billion cash and GHS 3.46 billion in-kind coupon payments made in February 2025 to all Domestic Debt Exchange Programme (DDEP) bondholders. Additional buffers have been secured to meet maturing DDEP bonds in July and August of this year, reinforcing Ghana’s commitment to responsible debt repayment.
With these transparent and prudent measures, President Mahama reassured business owners, foreign investors, and the general public of his government’s competency in turning around the economy.
“As we have done previously, we are committed to building resilience in our financial systems and fostering an investment-friendly environment. I urge my fellow Ghanaians and our global partners to trust in our ability to navigate this economic transformation successfully,” he emphasized.
The Mahama administration’s economic reset is centered on restoring investor confidence through fiscal discipline and policy consistency, accelerating stalled infrastructure projects to stimulate economic activity and job creation, strengthening debt management practices to prevent future financial crises and enhancing revenue mobilization while prioritizing social and economic investments.
As Ghana embarks on this path of economic resurgence, the government’s commitment to sustainable growth, fiscal prudence, and infrastructural development remains steadfast. While challenges persist, the bold economic reset promises to usher in a new era of stability and opportunity for businesses, investors, and citizens alike.
