In his first State of the Nation Address (SONA) since his return to office, President John Dramani Mahama has made a bold declaration to fix and revive Ghana’s energy sector.
Speaking to Parliament on Thursday, February 27, 2025, Mahama emphasized his past successes and declared his commitment to addressing the economic crisis that currently affects the country.
Drawing from his past experiences and a history of solving complex challenges, Mahama promised to reset the Ghanaian economy onto a path of growth and prosperity, just as he had successfully tackled the “Dumsor” energy crisis during his previous tenure.
The President reflectet on his past achievements, particularly the promise he made in 2015 to resolve Ghana’s chronic power outages. Mahama took pride in the fact that he had delivered on his promise.
“Since I stood in this chamber at this very spot to declare my determination to fix ‘Dumsor,’ a legacy problem of power shortages. And, Mr. speaker, I fixed it.”
President John Dramani Mahama
He made it clear that under his leadership, Ghana had successfully overcome power rationing and load management from January 2016 until he handed over the administration in July 2017.
This achievement, he emphasized, not only improved the energy situation but also had positive economic and developmental impacts on the country.
With a renewed mandate, Mahama announced his intention to resolve Ghana’s economic challenges and set the country on a trajectory of growth and prosperity.
“Mr. Speaker, today, inspired by the Almighty God and propelled by the massive mandate given to me by the good people of Ghana, I am moved to make a similar purposeful and bold declaration.
“That I, John Dramani Mahama, will fix the economic crisis confronting our country and reset it on a path of growth and prosperity.”
President John Dramani Mahama
Mahama’s statement comes at a time when Ghana is grappling with economic instability marked by high inflation, depreciating currency, and rising debt levels.
The president’s commitment to addressing these challenges signals a shift in focus toward fiscal consolidation, industrial expansion, and job creation.
Energy Sector Challenges and Reforms
Beyond the economic crisis, Mahama highlighted the financial difficulties plaguing Ghana’s energy sector.
According to him, the sector faces significant financial burdens due to collection inefficiencies, system losses, and noncompliance with the cash waterfall mechanism.
These issues have led to a substantial financing shortfall, which he estimated at approximately $2.2 billion.
Mahama acknowledged that these financial difficulties have constrained the sector’s ability to operate efficiently, affecting the stability and reliability of power supply.
“The energy sector faces significant financial challenges primarily due to collection and system losses, noncompliance with the cash waterfall mechanism, and legacy debts.”
President John Dramani Mahama
To address these challenges, Mahama outlined plans to restructure the sector’s financial architecture, enhance revenue collection, and enforce compliance with regulatory mechanisms.
His administration aims to introduce reforms to ensure cost recovery and operational sustainability, thereby eliminating the financial shortfall in the long term.
As Ghana faces economic uncertainties and energy sector difficulties, Mahama’s first SONA sets the tone for his administration’s policy priorities.
His promise to fix the economic crisis and revamp the energy sector reflects a strategic approach to governance, emphasizing fiscal discipline, investment in critical sectors, and sustainable energy solutions.
The coming months will be crucial in determining the effectiveness of his policies and whether his administration can deliver on its promises to restore economic stability and ensure reliable power supply.
With heightened public expectations, Mahama’s leadership will be under scrutiny as he embarks on his mission to rebuild Ghana’s economy and energy sector.
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