Mahama Reports Ghana’s Debt Servicing to Surge to Ghc280 Billion in Next Four Years

President John Dramani Mahama forecasted that Ghana’s debt servicing will reach Ghc280 billion within four years, with significant financial struggles in the energy sector due to a $2.2 billion deficit. Urgent measures are needed to address these fiscal challenges, as called for during his recent State of the Nation Address.

President John Dramani Mahama has provided a sobering assessment of Ghana’s economic landscape, stating that debt servicing is anticipated to reach Ghc280 billion over the next four years. This amount includes Ghc150 billion allocated for domestic debt and Ghc130 billion for external debt servicing.

During his State of the Nation Address (SoNA) delivered in Parliament on February 27, 2025, he noted ongoing struggles in the financial sector, despite significant expenditures of Ghc29.9 billion aimed at its rehabilitation under the previous government. The President mentioned, “Mr. Speaker, our financial sector continues to struggle despite the reportedly spending of GHS29.9 billion on the financial sector cleanup exercise to date by the previous administration.”

Additionally, President Mahama highlighted critical financial difficulties facing the energy sector. He disclosed that the funding gap in this area has surged to approximately $2.2 billion, or Ghc34 billion, for the year 2025. Issues such as collection losses, non-compliance with the cash waterfall mechanism, and legacy debts are primarily responsible for these challenges.

He underscored the necessity for immediate interventions to mitigate this deficit to sustainable levels and ultimately eliminate it altogether. His remarks underline the urgency of stabilizing Ghana’s economic conditions for future growth.

In conclusion, President Mahama’s address paints a concerning picture of Ghana’s financial future, particularly regarding the projected debt servicing and energy sector deficits. His statements reflect a dire need for strategic measures to address these challenges and secure the nation’s economic stability.

Original Source: www.gbcghanaonline.com