President Mahama forecasts Ghana’s debt servicing will reach Ghc280 billion in the next four years, comprising Ghc150 billion for domestic and Ghc130 billion for external debts. He also pointed out a projected $2.2 billion financing shortfall in the energy sector for 2025, citing systemic inefficiencies and legacy debts as key issues.
President John Dramani Mahama has expressed grave concerns regarding Ghana’s economic outlook. He projected that over the next four years, the country’s debt servicing will accumulate to Ghc280 billion, comprising Ghc150 billion for domestic obligations and Ghc130 billion for external debts. In his State of the Nation Address delivered on February 27, 2025, he emphasized the implications of these figures for the nation’s financial health.
Furthermore, President Mahama highlighted the ongoing struggles in Ghana’s financial sector, noting that despite a reported expenditure of Ghc29.9 billion on prior financial sector reforms, challenges persist. He remarked on the substantial financial burdens, particularly regarding the energy sector, where a financing shortfall of approximately $2.2 billion, or Ghc34 billion, is anticipated for the year 2025.
The energy sector is experiencing critical issues primarily due to collection inefficiencies, system losses, and the non-adherence to the cash waterfall mechanism, along with significant legacy debts. President Mahama underscored the need for immediate and effective strategies to mitigate this financial shortfall, aiming for a sustainable resolution to restore stability within the sector.
In summary, President Mahama’s address underscores the alarming forecasts for Ghana’s debt servicing and highlights the challenging dynamics within the financial and energy sectors. The projections of Ghc280 billion in debt servicing over the next four years and the urgent need to address the energy sector’s financing shortfall indicate significant fiscal challenges that require concerted efforts for resolution.
Original Source: www.gbcghanaonline.com
