President Mahama forecasts Ghana’s debt servicing will reach Ghc280 billion over the next four years, with Ghc150 billion for domestic debts and Ghc130 billion for external obligations. He emphasized severe financial challenges in the energy sector, including a $2.2 billion shortfall, necessitating urgent reforms to stabilize the economy.
President John Dramani Mahama has outlined a concerning forecast for Ghana’s economic trajectory, indicating that the nation’s debt servicing obligations are expected to reach a staggering Ghc280 billion over the next four years. This figure encompasses Ghc150 billion allocated for domestic debt and Ghc130 billion dedicated to servicing external debts.
During his State of the Nation Address (SoNA) delivered in Parliament on February 27, 2025, President Mahama lamented the financial struggles of Ghana’s sector, despite the previous administration’s substantial investment of GHS29.9 billion in a financial sector cleanup initiative. He stated that the impending debt servicing figure indicates a serious economic challenge.
Additionally, the President highlighted significant financial obstacles within Ghana’s energy sector, noting that the current financing shortfall has surged to approximately $2.2 billion, or Ghc34 billion, for the year 2025. The energy sector’s difficulties are primarily attributed to collection inefficiencies, system losses, issues with the cash waterfall mechanism, and unresolved legacy debts.
President Mahama urged for prompt interventions to alleviate the financial burdens on the energy sector, stressing the need to decrease the shortfall to sustainable levels and ultimately resolve it. The addressing of these critical issues is essential for improving Ghana’s economic stability and growth.
In conclusion, President Mahama’s address highlights the pressing economic difficulties facing Ghana, particularly in terms of debt servicing and challenges within the energy sector. With the projected debt servicing costs and significant financing shortfalls in energy, immediate and effective measures must be implemented to navigate these troubling economic circumstances responsibly. A strategic approach is imperative to ensure sustainable growth and financial stability in the years ahead.
Original Source: www.gbcghanaonline.com
