Ghana’s public debt hits GHS721bn; ECG owes GHS68bn, COCOBOD GHS32.5bn – Mahama
President John Dramani Mahama’s first State of the Nation Address (SONA) of his second term painted a grim picture of Ghana’s economic situation, describing the nation as “broken on many fronts” due to staggering debt and financial mismanagement. Ghana’s public debt has soared to GHS721 billion, placing immense pressure on the country’s economy.
The dire financial condition of major state-owned enterprises, including the Electricity Company of Ghana (ECG) and the Ghana Cocoa Board (COCOBOD), was also highlighted.
The ECG owes GHS68 billion, while COCOBOD’s balance sheet indicates a total debt of GHS32.5 billion, with GHS9.7 billion due by the end of September 2025.
“We are saddled with staggering debts and glaring signs of almost deliberate and, in some cases, reckless mismanagement of our resources,” Mahama stated.
“In addition to the public debt, which amounts to a staggering GHS721 billion, several state-owned enterprises are also in debt, including the ECG, which owes GHS68 billion.
Mahama’s revelations underscore the severity of Ghana’s economic crisis, emphasizing the need for financial restructuring and responsible governance to restore stability. The country’s economic growth has been impacted by high inflation, with rates reaching 54.1% in December 2022, although they have since decreased to 23.2% in December 2023.
To address these challenges, the government has implemented substantial macroeconomic policy adjustments, including comprehensive debt restructuring and fiscal consolidation. The International Monetary Fund (IMF) has also approved a $3 billion Extended Credit Facility to support Ghana’s economic recovery.
Key Economic Challenges:
– High Public Debt: GHS721 billion, placing immense pressure on the economy
– State-Owned Enterprise Debt: ECG owes GHS68 billion, COCOBOD owes GHS32.5 billion
– Inflation: Rates reached 54.1% in December 2022, decreased to 23.2% in December 2023
– Economic Growth: Impacted by high inflation, with growth projections revised upwards to 4% for 2024.
