President John Dramani Mahama, in his State of the Nation Address, underscored his administration’s unwavering commitment to responsible debt management and the bolstering of Ghana’s financial reserves as cornerstones of economic recovery. He acknowledged the challenging legacy inherited from the previous administration, characterized by significant debt accumulation and a plethora of stalled infrastructure projects, which collectively placed immense strain on public finances and hindered economic progress. President Mahama emphasized that a disciplined fiscal approach, centered on proactive debt repayment and a strengthened Sinking Fund, would be the guiding principle in navigating the path to economic revitalization.
The President highlighted recent achievements in debt servicing as tangible proof of Ghana’s renewed commitment to its financial obligations. He cited the successful settlement of substantial coupon payments, totaling GHS 6.08 billion in cash and GHS 3.46 billion in-kind, for bonds under the Domestic Debt Exchange Programme (DDEP) in February 2025. This demonstrated, according to the President, a clear intention to honor commitments and restore confidence in Ghana’s financial stability both domestically and internationally. Furthermore, he stressed the importance of securing additional resources for the Sinking Fund to ensure timely repayment of DDEP maturities due in July and August, underlining the government’s proactive approach to prevent future payment delays and reinforce credibility.
President Mahama emphasized that the government’s focus extended beyond mere debt management to rebuilding trust in the country’s economic prospects. By establishing robust financial buffers, the government aims to not only safeguard future stability but also send a clear message to citizens and investors that Ghana is committed to honoring its financial commitments. This commitment to transparency and responsible fiscal management, the President argued, is crucial for attracting investment and fostering sustainable economic growth.
Furthermore, President Mahama addressed the broader economic ramifications of past financial mismanagement. He drew attention to the 55 stalled infrastructure projects, representing a combined value of $2.95 billion with projected cost overruns of GHS 15 billion. These unfinished projects, he argued, were not just symbols of inefficiency but also a significant drain on public resources, hindering the delivery of essential services and impeding economic growth. He stressed that the accumulated debt burden necessitated a rigorous adherence to debt sustainability measures to facilitate economic recovery.
The President emphasized the critical link between prudent debt management and the ability to revive stalled projects. He argued that every cedi saved through responsible financial management would be redirected towards restarting these crucial infrastructure projects. This reallocation of resources, according to the President, would not only stimulate economic activity but also improve the quality of life for Ghanaians by delivering essential services and infrastructure.
In conclusion, President Mahama’s address conveyed a strong message of commitment to fiscal discipline and responsible debt management as the foundation for economic recovery. He outlined a clear strategy focused on proactive debt repayment, strengthening financial buffers, and reviving stalled infrastructure projects. The President stressed that this approach is not solely about managing debt, but also about rebuilding trust and demonstrating to both citizens and investors that Ghana is on a path of sustainable economic development, committed to honoring its commitments and creating a brighter future for its people. He vowed to maintain this fiscal discipline even as his government diligently worked to restart the stalled projects, emphasizing the long-term benefits of this approach for Ghana’s economic future.
