President Mahama forecasts Ghana’s debt servicing will reach Ghc280 billion over the next four years, comprising Ghc150 billion for domestic debt and Ghc130 billion for external debt. Challenges in the energy sector are also highlighted, with a projected financing gap of Ghc34 billion in 2025, necessitating immediate intervention.
President John Dramani Mahama has delivered a critical assessment of Ghana’s economic outlook, forecasting that over the next four years, the nation’s debt servicing will reach Ghc280 billion. This total includes Ghc150 billion allocated for domestic debt and Ghc130 billion for external debt liabilities.
During his State of the Nation Address (SoNA) in Parliament on February 27, 2025, President Mahama highlighted the ongoing struggles within Ghana’s financial sector. He pointed out that despite the previous administration’s expenditure of Ghc29.9 billion on financial sector cleanup efforts, significant challenges persist.
The President also addressed the financial difficulties plaguing Ghana’s energy sector, noting a substantial financing gap projected to be approximately $2.2 billion or Ghc34 billion for 2025. These issues arise due to collection inefficiencies, system losses, and outstanding legacy debts that must be managed effectively.
To mitigate the energy sector deficit, President Mahama called for immediate strategies to bring the shortfall down to sustainable levels and ultimately eliminate it. He emphasized that addressing these financial challenges is essential for the country’s economic stability.
In summary, President Mahama forecasted a grim economic situation for Ghana, highlighting that debt servicing will reach an alarming Ghc280 billion in the coming four years. Additionally, he pointed out the significant challenges in the energy sector, with a pressing need for strategies to address the ongoing financial shortfall.
Original Source: www.gbcghanaonline.com
