In his State of the Nation Address (SONA), President John Dramani Mahama laid out his plans to rebuild Ghana’s struggling economy, restore investor confidence, and create a business-friendly environment.
Acknowledging the economic turmoil inherited by his administration, he reaffirmed his commitment to fiscal discipline, structural reforms, and policies that will encourage both local and foreign investment.
“The repercussions of reckless debt accumulation and economic mismanagement will require extensive work and sacrifice to repair,” he admitted, emphasizing the depth of the crisis.
One of the key pillars of President Mahama’s strategy is restoring fiscal discipline. Since taking office on January 7, 2025, his administration has streamlined government operations, eliminated wasteful expenditures, and reduced Ghana’s reliance on borrowing.
As part of these efforts, the government successfully honored the matured coupon payment of GHS 6.081 billion in cash and GHS 3.46 billion in kind to Domestic Debt Exchange Programme (DDEP) bondholders.
Additional buffers have been created in the Sinking Fund to ensure that upcoming domestic and external debt maturities are repaid on time.
Mahama also revealed that Ghana has signed a Memorandum of Understanding (MoU) with its Official Creditor Committee (OCC) to formalize the debt treatment agreement reached with official creditors.
“This marks a crucial step toward Ghana’s restoration of long-term debt sustainability,” he noted, highlighting how the agreement will support economic recovery.
Economic Reforms and Business Climate
President Mahama reassured investors and business owners that his government is working to create a stable and predictable economic environment.
He pointed to recent developments in the financial sector as evidence that his reforms are beginning to bear fruit.
“Our prudent debt management practices have led to a substantial reduction in interest rates. The 91-day Treasury bill rate, which was 28.51% on January 6, 2025, has decreased to 24.48% as of February 24, 2025”
President John Dramani Mahama
He further noted that the 182-day and 364-day Treasury bill rates had also dropped from 29.07% to 25.388% and from 30.41% to 27.30%, respectively.
With this foundation in place, Mahama called on both local and foreign investors to trust in the government’s ability to turn the economy around.
“With the transparent and prudent measures we have implemented since taking over the administration of this country, I urge my countrymen and women, business owners, and foreign investors to trust our competence in turning our economic fortunes around”
President John Dramani Mahama
Revitalizing the Petroleum Sector
Another area of concern is Ghana’s petroleum sector, which has seen a significant decline.
Crude oil production has shrunk by more than 32%, a situation Mahama attributed to “high opacity levels, a hostile business climate, and excessive political interference.”
This decline has had devastating effects on cities such as Sekondi-Takoradi, once the epicenter of Ghana’s oil and gas activities.
“My recent visit reveals many shut-down facilities and many businesses that have packed and left,” he lamented.
To reverse this trend, his administration has begun engaging with investors to rebuild confidence in the sector.
“My meetings with players in the upstream sector have been extremely positive, and we have been assured of substantial investments running into billions of dollars in the very near future”
President John Dramani Mahama
Judicial and Legal Reforms
In addition to economic restructuring, Mahama underscored the need to restore public confidence in Ghana’s judicial system.
He acknowledged growing concerns about political interference in justice delivery and pledged his administration’s commitment to upholding the independence of the judiciary.
“Delays and uncertainties have plagued justice delivery in Ghana, leading many Ghanaians to perceive a politicization of the judicial process. The public’s trust in the judiciary’s independence is alarmingly low”
President John Dramani Mahama
To address these concerns, Mahama outlined plans to depoliticize the judiciary by working closely with the Judicial Council and the Chief Justice. His administration will also implement measures to curb corruption within the judiciary.
“We must restore confidence in the judiciary. My government will uphold its independence, work with the Judicial Council and services to depoliticize justice delivery, and collaborate closely with the Chief Justice to combat corruption effectively”
President John Dramani Mahama
As part of his broader legal reforms, Mahama announced that his government had drafted a Legal Education Reform Bill, which will soon be presented to the Cabinet before being laid before Parliament.
This bill aligns with his administration’s commitment to expanding and improving legal education in Ghana.
Furthermore, on January 30, 2025, Mahama inaugurated the Constitution Review Committee to undertake a comprehensive review of Ghana’s fundamental law.
The committee, composed of distinguished scholars, jurists, and professionals, will engage citizens and relevant stakeholders over six months to gather input on necessary constitutional amendments.
“The findings will ultimately be presented to the public for approval in a referendum, followed by submission to Parliament for enactment into law,” Mahama explained.
Agricultural Transformation and Food Security
Mahama’s government has also prioritized agriculture as a key driver of economic recovery. The Agriculture for Economic Transformation Agenda (AETA) aims to modernize the sector, enhance agribusiness, and ensure food security.
“The Feed Ghana Programme will increase food production and reduce prices through projects like the Grains Development Project, focusing on rice, maize, and soybean production. The Vegetable Development Project will target crops such as tomatoes, onions, and peppers”
President John Dramani Mahama
A major focus will be on reducing poultry imports, which currently cost Ghana over $300 million annually.
“The Nkoko Nkitinkiti project will cover 55,000 households producing eggs and fresh poultry for the market and help reduce the $300 million we spend on importing chicken annually”
President John Dramani Mahama
To attract young people to agriculture, the government will implement the AgriNext Programme, which will provide access to land banks, connect graduates to opportunities in the agricultural value chain, and promote greenhouse farming.
Empowering Entrepreneurs and the Workforce
Youth unemployment remains a critical challenge, and Mahama’s administration has rolled out multiple initiatives to tackle it.
The Adwumawura Programme, for example, will support 2,000 business proposals annually with funding, mentorship, and market access.
“The first phase will support the top 2,000 implementable business proposals with business development training, mentorship, access to startup capital, market, and networking to operationalize their innovations and business ideas”
President John Dramani Mahama
In addition, the National Apprenticeship Programme will train 10,000 young people in the informal sector, covering apprenticeship fees and providing startup kits.
A Commitment to Inclusive Growth
Beyond these targeted reforms, Mahama emphasized his broader vision for economic inclusion. “The goal is prosperity for all, which must be shared, not the prerogative of a select few,” he stated.
As part of this agenda, the government will launch a National Economic Dialogue to bring stakeholders together and develop a homegrown fiscal consolidation program.
The initiative aims to reset the economy and lay the foundation for sustainable growth with the 24-hour economy positioned to ferry all these interventions.
Mahama also underscored the importance of Ghana’s strategic position on the global stage.
“Ghana’s peaceful and democratic environment positions us as an attractive hub for international summits, business conventions, and high-profile gatherings,” he noted.
“Ghana is open for business” he stated emphatically. With a renewed focus on fiscal discipline, debt sustainability, industrialization, judicial reforms, and job creation, his administration is laying the groundwork for a more resilient economy.
Acknowledging the difficulties ahead, he remained optimistic. “The economy is even worse than we envisaged, but this gives us ample opportunity to be innovative in our efforts to reset and rebuild it,” he declared.
Through targeted reforms, strategic investments, and a commitment to inclusive growth, Mahama’s administration seeks to restore confidence, attract investment, and ultimately create an economy that works for all Ghanaians and businesses.
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