President John Dramani Mahama has revealed that Ghana’s Sinking Fund, meant for debt repayment, holds a meager balance of just $64,000 and GHS143,000, challenging assertions by the previous Akufo-Addo administration that it left behind significant financial reserves.
Speaking during his first State of the Nation Address (SONA) of his second term on Thursday, February 27, 2025, President Mahama provided clarity on the true state of the nation’s finances.
“Contrary to claims that buffers were left for debt repayments in 2025, the reality is starkly different. The Sinking Fund currently has only $64,000 in its dollar account and GHS143,000 in the Cedi account,” Mahama disclosed.
He painted a concerning picture of Ghana’s mounting debt, emphasizing the tough road ahead for economic stabilization.
“The financial strain caused by reckless accumulation of debt and economic mismanagement will require significant sacrifices and structural reforms,” the president stated.
Mahama further projected that Ghana’s debt servicing costs over the next four years would reach an overwhelming GHS280 billion—comprising GHS150 billion for domestic debt and GHS130 billion for external debt.
“With our debt servicing obligations set to hit GHS280 billion in the next four years, we must take urgent action to restore fiscal discipline and rebuild trust in our economy,” he stressed.
The revelations underscore the financial challenges facing the country and reinforce the need for prudent economic policies to navigate the difficult road ahead.
