The Institute of Economic Research and Public Policy (IERPP) has raised concerns over certain claims made by President John Dramani Mahama during his first State of the Nation Address (SONA) on February 27, 2025.
Delivered before the 9th Parliament, the speech covered Ghana’s economic, social, and financial state.
However, IERPP asserted that some of the president’s statements do not align with historical records and available data.
In particular, the institute challenged the president’s claim that he had fully resolved dumsor (erratic power supply) by 2016.
IERPP cites a statement from an article published by Citi FM Online on April 19, 2016, in which the president himself admitted: “We are not able to get enough gas to feed the power plants.”
Additionally, a GhanaWeb article published on July 15, 2016, quotes President Mahama acknowledging that dumsor had not yet ended while addressing party supporters in Tamale.
Based on these documented statements, IERPP argued that the claim made in the 2025 SONA contradicts historical facts.
Addressing the depreciation of the Ghanaian cedi, the president reported a 19% loss in value against the U.S. dollar in 2024, following a 27.8% depreciation in 2023.
While IERPP acknowledged that the economy faces challenges, it emphasized that a broader analysis of data from the Ministry of Finance and the Bank of Ghana shows significant efforts in stabilizing the currency.
“Despite periods of volatility, the cumulative exchange rate depreciation showed a decline from 73.8% during the NDC administration (2009–2016) to 71.4% under the NPP government (2017–2023).”
Institute of Economic Research and Public Policy (IERPP)
The institute attributed this relative stability to policy interventions, including fiscal discipline, monetary policy adjustments, and the gold-for-oil policy.
However, it warned that sustained long-term stability will require additional structural reforms, increased foreign exchange reserves, and diversified economic strategies.
Financial Sector Recovery: A Misleading Narrative?
Meanwhile, President Mahama also stated that Ghana’s financial sector remains fragile despite the previous government spending GHS 29.9 billion on a clean-up exercise.
However, IERPP contended that this claim is misleading and highlights data from the World Bank’s 8th Ghana Economic Update, which indicates that more than half of Ghana’s 23 banks are now in strong positions.
According to IERPP, the financial sector has experienced a significant turnaround. Return-on-equity (ROE) after tax surged from -34.4% in December 2022 to 34.2% in December 2023, while return-on-assets (ROA) improved from -3.8% to 5.4% in the same period.
“These indicators suggest that while challenges remain, the financial sector has made significant strides in resilience and recovery. The implementation of regulatory measures, improved asset quality, and enhanced risk management strategies have contributed to the sector’s stability.”
Institute of Economic Research and Public Policy (IERPP)
IERPP further stressed the importance of fiscal discipline, efficient monetary policies, and investor confidence in ensuring continued growth in the financial sector.
Another point of contention is the president’s claim that the previous administration left minimal reserves for debt servicing, despite implementing what he described as one of the most severe economic policies—the Domestic Debt Exchange Programme.
Accordingly, IERPP argued that it remains unclear whether the president was referring to Gross International Reserves (GIR) or the sinking fund.
IERPP stated that Ghana’s gross international reserves currently stand at approximately $8.9 billion, translating to four months of import cover.
This, it noted, is among the highest reserve levels recorded under the Fourth Republic. In contrast, when President Mahama handed over power in January 2017, Ghana’s reserves stood at $5.78 billion, covering only 3.4 months of imports.
Additionally, if the president was referring to the sinking fund, IERPP clarified that as of January 2025, the previous NPP administration had left an auction excess of over GH₵700 million, along with an extra GH₵3 billion in unspent end-of-year revenue. “Given these facts, the President’s claim that inadequate reserves were left for debt servicing does not align with available financial records.”
IERPP further emphasized that while President Mahama’s SONA sought to outline his administration’s vision, certain economic claims require further scrutiny.
The institute stressed that Ghana’s economic challenges demand pragmatic policies rather than political rhetoric.
As such, it called for a balanced approach that considers historical economic data and emphasizes long-term stability over short-term political narratives.
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