Key points:
- Ghana’s debt has hit GHS 721bn ($48.5bn), with inflation at 23.8%
- Mahama launches anti-corruption drive, vows to recover stolen funds
- Job creation, energy reforms, and infrastructure development prioritised
PRESIDENT John Dramani Mahama has pledged to fix Ghana’s struggling economy, create jobs, and tackle corruption as he delivered his State of the Nation Address (SONA) 2025 to Parliament on Thursday.
Mahama, who assumed office in January following a historic electoral victory, painted a grim picture of Ghana’s economic state, describing it as ‘a country in deep crisis.’ He pointed to ballooning debt, high inflation, currency depreciation, and crumbling infrastructure as urgent issues requiring immediate intervention.
‘I will fix the economic crisis confronting our country and reset it on a path of growth and prosperity,’ Mahama declared.
Ghana’s economic woes: debt, inflation, and fiscal discipline
According to Mahama, Ghana’s public debt has surged to GHS721bn (about $48.5bn), leaving the country in a precarious financial position. He lamented that despite strict IMF conditions, previous economic managers failed to exercise fiscal prudence, leading to an inflation rate of 23.8 percent in 2024—far exceeding the IMF target of 18 percent. ‘Our economy is in intensive care. The reckless mismanagement of our resources has left us with no buffers to cushion the hardships our people are enduring,’ he said.
The Ghanaian cedi has also taken a hit, depreciating 19 percent against the US dollar in 2024, further increasing the cost of imports and everyday essentials. Mahama assured Ghanaians
that his government would reduce wasteful expenditures and adopt prudent debt management practices.
To reset the economy, Mahama announced a National Economic Dialogue on March 3–4, bringing together economic experts, businesses,
and policymakers to chart a homegrown recovery plan.
Jobs, infrastructure, and the 24-hour economy
A central theme of Mahama’s address was job creation, as he acknowledged the youth unemployment crisis in the country. He pledged to generate sustainable jobs through industrialisation, agribusiness, and digital technology initiatives.
‘Too many of our young people are unemployed. We must act swiftly to provide them with meaningful work and restore their dignity,’ Mahama said.
To address this, he announced the Adwumawura Programme, an initiative to support startups and small businesses, as well as a National Apprenticeship Programme to train 10,000 youth in vocational skills.
His 24-hour economy policy, which aims to boost productivity and create jobs by extending business operations round-the-clock, will be implemented alongside tax reforms to encourage investment.
Energy sector crisis: debt and power shortages
Mahama described Ghana’s energy sector as being on the brink of collapse, revealing that despite collecting GHS45bn ($3bn) in Energy Sector Levies over the last eight years, the sector remains burdened with a staggering debt of GHS70bn ($4.7bn).
‘It is unacceptable that after billions collected from Ghanaians, our energy sector is drowning in debt. This mismanagement must end,’ Mahama stated.
He directed the Minister of Energy and Green Transition to introduce urgent reforms, including private sector participation in metering and billing to improve revenue collection and reduce high energy losses.
Additionally, Mahama promised to expand renewable energy sources and fully operationalise the Renewable Energy and Green Transition Fund, focusing on solar power, off-grid solutions, and electric vehicle infrastructure.
Corruption crackdown: ‘Operation Recover All the Loot’
One of Mahama’s strongest commitments in SONA 2025 was to root out corruption and recover stolen public funds. He referred to the launch of ‘Operation Recover All the Loot’, aime
d at retrieving misappropriated state resources and prosecuting corrupt officials.
‘We must put an end to state capture and impunity. Those who have looted state resources must return what they have taken or face justice,’ Mahama warned.
A key focus of his anti-corruption drive is the investigation into the National Service Scheme ghost names scandal, where over 80,000 fraudulent names were allegedly used to siphon off GHS50 million ($3.36 million) monthly. Mahama revealed that some suspects have fled the country, but vowed to track them down and freeze their assets.
He also pledged:
- The establishment of a presidential anti-corruption unit to oversee graft cases.
- A new bill to regulate the sale and disposal of public lands and state assets.
- Strengthened transparency in government spending and public procurement reforms.
Infrastructure, roads, and housing
Mahama criticised the previous administration’s handling of the Agenda 111 hospital project, revealing that despite $400 million already disbursed, not a single hospital is fully operational.
‘We will reassess, restructure, and complete these hospitals using a pragmatic funding model,’ Mahama assured.
On roads, Mahama debunked claims by the Akufo-Addo administration that 13,000km of roads had been built, stating that many were mere rehabilitation projects misrepresented as new constructions. He promised to unblock stalled road projects worth GHS105bn ($7.05bn) and reinstate road tolls using modern technology to raise revenue.
His housing plan includes completing stalled affordable housing projects and launching a District Housing Scheme, where formal sector workers can purchase homes and pay through salary deductions over 15–20 years.
Social policies and education
Mahama reassured Ghanaian
s that the Free SHS (senior high school) programme would not be cancelled, but instead reformed for better quality and efficiency.
‘I will not cancel Free SHS. I am determined to make it better,’ he affirmed.
Additionally, he announced:
- The No-Fee Tertiary Education Policy to remove admission fees for all students.
- 100 percent free tertiary education for persons with disabilities.
- The introduction of military training for national service personnel to instil discipline.
‘The task ahead is tough, but we will succeed’
Mahama ended his speech with a call for unity and collective action, emphasising that Ghanaians must work together to rebuild the economy.
‘We are embarking on a historic mission to reset Ghana’s economic course. It will not be easy, but with determination, we will succeed,’ he stated.
He assured the nation that bold, pragmatic steps would be taken to restore economic stability, create jobs, and build a more transparent government.
‘I have been here before. I have faced crises before. And just as I fixed dumsor [ constant power cuts], I will fix this economy,’ Mahama assured the nation.
