FULL TEXT: President John Dramani Mahama's State of the Nation Address

MESSAGE ON THE STATE OF THE NATION
DELIVERED BY HE JOHN DRAMANI MAHAMA, PRESIDENT OF THE REPUBLIC OF GHANA TO THE 9TH PARLIAMENT ON THURSDAY, FEBRUARY 27, 2025.

Right Honourable Speaker,
Your Excellency, the Vice President,
Your Excellency, the First Lady, 
Your Ladyship, the Chief Justice,
Honourable Members of Parliament,
Honourable Members of the Judiciary,
Distinguished Leaders of Our Security Forces,
Excellences, Members of the Diplomatic Corps,
Our revered Niimei, Naamei, Chiefs, Traditional Rulers and Religious Leaders,
The National Chairman and executives of the National Democratic Congress, 
The good people of Ghana, 

I wish you a very good morning. 

Mr. Speaker, Article 67 of the 1992 Constitution requires the President to address the people of Ghana, in whom sovereignty resides, on the state of the nation.

About thirty (30) years ago, in 1996, I took my first steps in public service when I was elected to this august house as the Member of Parliament for the Bole Bamboi Constituency. 

For twelve memorable years, I forged many enduring friendships and alliances while working with colleagues from both sides of the house to shape Ghana's legislative agenda and advance the development of our beloved country, Ghana.

It has also been nearly a decade since I said goodbye to this house after delivering what many, including myself, thought at the time would be my final address to Parliament.

God almighty, providence and the unpredictability of life have summoned me here once again, on the back of a historic electoral mandate from the people of Ghana, to deliver a message on the State of the Nation. 

That mandate came with an unprecedented majority in Parliament, and here I am, once again, to deliver a message on the real State of the Nation. 

Mr. Speaker, I wish to convey my heartfelt gratitude to Parliament for the prompt vetting and approval of my nominees for Ministerial positions.

This efficiency is unmatched in the history of the Fourth Republic, demonstrating the strides we can make when we come together in our dedication to serve the people of our great country.

I believe that a similar dispatch will be applied to the approval processes for my Deputy Ministerial nominees. This will enable them to promptly assume office and assist their Ministers in delivering on our noble vision of Resetting Ghana. 

In making the nominations and considering the numbers involved, I considered the long-expressed sentiments of the Ghanaian people about the sheer size of previous administrations and the associated cost implications.

I trust that this significant reduction to sixty (60) Ministers and Deputy Ministers, including Regional Ministers—will set the stage for further reductions in the size of future governments.

With the inauguration of the Council of State, we can begin appointing staff for the Presidency. I intend to significantly reduce the number of staff compared to what existed under the previous administration. All this is aimed at leading by example in cutting down government expenditures and reducing the budget deficit.

Let me begin, Mr. Speaker, by invoking the timeless words of hymnist John Oatman Jr., who encourages us to count our blessings and name them one by one.

Yes, we are a nation troubled on many fronts, but we have many blessings, among which is a now firmly established democracy that, for all its imperfections, has enabled four (4) peaceful transfers of power in our land.

Nestled in a sub-region often plagued by strife and political instability, there is good reason to take sober satisfaction that these successive peaceful power transfers have become routine.

Mr. Speaker, fifty days ago, I took the solemn oath to assume leadership of this country and serve with truth and humility. This was preceded a month earlier by watershed elections that promised to revive our nation's fortunes and give us a new lease on life. 

The election result gave us an important opportunity to change course and move off the slippery slopes our country had been descending on that had caused so much economic pain, suffering, and grief.

In their collective wisdom and with resounding clarity, the Ghanaian people chose to chart a new path to reset the country's economy. Through their votes, they made it clear that they would henceforth demand the highest standards of governance from those they put in positions of leadership.

The good people of Ghana elected me to office, with a historic electoral margin of nearly 1.7 million votes separating me from my next opponent.

For the National Democratic Congress (NDC), that resounding victory is a selfless call to duty from a people weary of years of economic hardships and poor governance.

That call, therefore, places an obligation on me and all who serve with me, including legislators from both sides of the house, to do our utmost with decency and humility to change the circumstances and state of our country.

Mr. Speaker, as I stated earlier, Article 67 of the 1992 Constitution requires that I give an account of the State of our Nation to Parliament. I am sad to report that the state of our nation is not good. Our economy is in crisis, and our people are suffering unprecedented hardships.

Mr. Speaker, we will host a National Economic Dialogue on March 3rd and 4th. On March 11th, the Minister for Finance, on my behalf, will present the budget estimates for the financial year to this August House. These two events will allow us to present the real state of Ghana's economic crisis to the people.

Mr. Speaker, it is not my style to lament and shift blame when confronted with challenges, as others often do. My approach is to accept challenges and work hard to resolve them. Indeed, that is precisely what the people of Ghana elected me to do. 

I have not come here to lament the state of our country, though there is much to lament. I understand why I was elected with such high voter confidence—to solve their problems. 

With your permission, Mr Speaker, and within the constraints of time—I will take the liberty to elaborate on how we intend to address the problems.

Yesterday, February 26, 2025, marked exactly ten years since I stood in this chamber, at this very spot, to declare my determination to fix Dumsor, a legacy problem of power shortages. And I fixed it! 

Yes, I promised to fix it, and I did! I wish to place firmly on record that from January 2016 until I handed over the administration of this country on January 7, 2017, there was no power rationing or load management in Ghana.

Mr. Speaker, today, inspired by the almighty God and propelled by the massive mandate given 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. 

My government, working with you and every Ghanaian, will solve the challenges because we have developed a plan with our people's support.

When I decided to run for President again, I did so because of what I knew about the state of our country. I was aware that huge problems awaited me upon my assumption of office. But nothing could prepare anyone for the reality of the depths to which our economy and governance have sunk.

Our elders say that a frog's true length can be ascertained only after it has died. And how right they are.

It is common knowledge that our economy is in dire straits, which is putting it mildly because, after an initial assessment of the books, we have discovered that our economic problems are much deeper than was publicly known. We have inherited a country that is broken on many fronts. The profundities of the challenges are staggering.

We are saddled with staggering debts and glaring signs of almost deliberate and, in some cases, criminal mismanagement of our resources.

Mr. Speaker, not even the restraints of an IMF programme were enough for the previous economic managers to exercise prudence in managing our finances. 

After setting an inflation target of 18% by the end of 2024, the actual rate was 23.8%, significantly exceeding the IMF threshold. The Ghana cedi continued its downward slide, losing 19% of its value against the dollar in 2024. It had already lost 27.8% in value in 2023.

In addition to the public debt, which amounts to a staggering GHS 721 billion, several State-Owned Enterprises are also in debt, including ECG, which owes GHS 68 billion.

Ghana Cocoa Board—the hope of cocoa farmers—is also highly indebted. Its balance sheet indicates a total debt of GHS 32.5 billion, of which GHS 9.7 billion is due to be paid at the end of September 2025.  

In the 2023/2024 crop season, COCOBOD could not supply three hundred and thirty-three thousand seven hundred and sixty-seven (333,767) tonnes of cocoa, which it sold at US$ 2,600 per tonne. As a result, the then management of COCOBOD rolled over these contracts into the 2024/2025 cocoa season. 

This implies that for every tonne of cocoa delivered this year in fulfilment of the rolled-over contracts, COCOBOD and the Ghanaian farmer would lose US$ 4,000 in revenue. 

Mr. Speaker, as I address this honourable house, COCOBOD has supplied 210,000 tonnes out of the rolled-over contract, resulting in a revenue loss of US$ 840 million for both COCOBOD and the Ghanaian farmer. 

COCOBOD and the Ghanaian farmer will lose another US$495 million when the Board finishes supplying the remaining rolled-over contracts.

Additionally, cocoa road commitments alone total GHS 21.7 billion, of which only GHS 4.4 billion is included in the total debt of GHS 32.5 billion. This debt has arisen mainly because of the decision in 2019 and 2020 to award road contracts worth over US$1 billion because of the election.

Mr. Speaker, the energy sector faces significant financing challenges primarily due to collection and system losses, non-compliance with the Cash Waterfall Mechanism, and legacy debts. 

The financing shortfall has risen considerably to approximately US$2.2 billion or GHS 34 billion for 2025, and urgent measures will be needed to reduce it to sustainable levels and ultimately eliminate it. 

The financial sector continues to struggle despite the previous government reportedly spending GHS 29.9 billion on the financial sector clean-up exercise to date.

They also left scant reserves for debt servicing despite implementing what may be considered the most severe and distressing economic policy in the annals of the Fourth Republic, if not in the entirety of our nation's history—the Domestic Debt Exchange Programme. 

This is in stark contrast to our actions in 2017, before we left office, when we allocated US$ 250 million to the Sinking Fund to service debt.

While there have been claims that buffers were left for debt repayment, the statement of accounts for the Debt Service Reserve Account, also known as the Sinking Fund, shows a balance of only $64,000 and GHS 143 million in the dollar and Ghana cedi accounts, respectively.

The repercussions of reckless debt accumulation and economic mismanagement will require extensive work and sacrifice to repair.  

In the next four years, debt servicing will amount to GHS 280 billion, comprising GHS 150 billion for domestic and GHS 130 billion in external debt servicing. 

The catastrophic debt position has also severely impacted infrastructure projects that should have been completed. There are fifty-five (55) stalled projects due to the default of debt and subsequent restructuring, with a total amount of US$ 2.95 billion not disbursed. The stalling of these projects is expected to result in a cost overrun of about GHS 15 billion.

Notwithstanding this gloomy background, I remain committed to leading this government, taking every necessary step to reset our economy, getting things back on track, and working with the good people of our country to build the Ghana we want. 

We are doubling our efforts to complete all outstanding structural reforms. Through the budget, we will implement corrective measures to restore fiscal discipline and debt sustainability. We are also working towards completing the upcoming fourth review of the IMF-supported Programme. 

The review is scheduled from April 2nd to April 15th, 2025, and the IMF Executive Board is expected to approve it in June 2025. As we have done previously, we are also building buffers in the Sinking Fund and adopting prudent debt management practices to ensure prompt repayment of upcoming domestic and external debt maturities. 
In this respect, the government successfully honoured the matured coupon payment of GHS 6.081 billion (in cash) and GHS 3.46 billion (in kind) due in February 2025 to all Domestic Debt Exchange Programme (DDEP) bondholders. 

We have also built additional buffers in the Sinking Fund to honour maturing DDEP bonds due in July and August.

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.

Mr. Speaker, since we took office on January 7, 2025, we have upheld our commitment to a fiscal consolidation agenda with a streamlined government. We have eliminated unnecessary expenditures and reduced our reliance on borrowing. 

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. Similarly, the 182-day Treasury bill rate, which was 29.07% as of January 6, 2025, has decreased to 25.388% 

The 364-day Treasury bill rate has also moved from 30.41% to 27.30% in the same period.
We signed a Memorandum of Understanding (MoU) with our Official Creditor Committee (OCC) to formalise the debt treatment agreed upon with official creditors. This marks a crucial step toward Ghana's restoration of long-term debt sustainability. The agreement will enable financial resources to support and strengthen economic recovery.
  
Mr Speaker, on February 20, 2025, the National Tripartite Committee (NTC) and the Public Services Joint Standing Negotiating Committee (PSJSNC) concluded negotiations on the 2025 minimum wage and base pay for the Single Spine Salary Structure (SSS), respectively.

I want to use this opportunity to reiterate my sincere gratitude to Organised Labour and the Ghana Employers Association for their understanding and cooperation in reaching this agreement on the minimum wage and base pay. 

On the final day of negotiations, I enjoyed the privilege of joining my comrades, the leaders of organised labour, for the concluding discussions. I am confident that the sacrifice we all have to make this year will significantly benefit our economy's health. 

We look forward to a positive economic outlook as we restore macroeconomic stability, encourage exports, activate the 24-Hour Economy initiative, implement the US$ 10 billion ‘Big Push’ policy for swift infrastructure development,  ationalize taxes, and foster inclusive growth. 

The goal is prosperity for all, which must be shared, not the prerogative of a select few.

Mr Speaker, in fulfilment of our 120-day social contract with the Ghanaian people, we have put in place the planning committee to host the National Economic Dialogue. This dialogue is expected to discuss the State of the economy and reach a consensus on the key policies needed to address the devastating economic crisis confronting us.

It will support the development of a home-grown fiscal consolidation programme and highlight key structural reforms and policy priorities essential for resetting the economy and creating prosperity for all.

I believe there is absolute wisdom in what our elders say: that two heads are better than one. Consultation and consensus building have always proven to be better than unilateral decision making. It is my hope that our colleagues on the other side of the divide will display love of country and participate in this National dialogue unlike their boycott of the Senchi Forum in 2014.

I humbly choose a different path of accommodation and cooperation with all stakeholders. We will continuously engage on important issues so that together, we can reset our country and focus on sustainable development. Together, we shall build the Ghana we want.

Mr. Speaker, my administration inherited an energy sector on the brink of collapse, which was weighed down by unsustainable debts. This unfortunate situation has led to many Independent Power Producers (IPPs) and fuel suppliers threatening to cease their operations. 

Despite collecting over GHS 45 billion in Energy Sector Levies (ESLA) over the last eight years, the outgone NPP administration has left the Ghanaian people an energy sector burdened with a staggering GHS 70 billion debt as of December 2024. 

It is of deep concern that several state-owned enterprises (SOEs) in the energy sector are struggling to stay afloat. Unless urgent interventions are made, many of them will go under. 

Financial distress in the energy sector remains a significant obstacle to delivering consistent and affordable electricity to Ghanaians and poses an existential threat to the economy in general.
 
Compounding these challenges, critical maintenance activities—such as the scheduled pigging of the West African Gas Pipeline (WAPCO)—were postponed from 2024 to 2025 without sufficient contingency measures for alternative fuel supply. 
As a result, my administration has had to swiftly mobilise resources to secure emergency fuel supplies, ensuring that electricity generation continues despite the difficult circumstances.

I have been informed that the pigging exercise will be completed in the first weeks of March. Once additional gas flows from Nigeria, we anticipate a marked improvement in the power situation.

While the current state of the energy sector poses grave concerns, we must remain resolute in our commitment to restoring stability. I have directed the Minister for Energy and Green Transitions to implement far-reaching reforms, including enforcing a single revenue collection account, strictly adhering to the Cash Waterfall Mechanism (CWM), and eliminating wasteful expenditures.

The Minister, following my directive has set up an advisory committee to guide the participation of the private sector in metering and billing in order to improve efficiency in revenue collection and reduce the high commercial and technical losses that are threatening to drown the state-owned utility company.

A pilot partnership between ECG and Enclave power has proved highly successful and provides us with a workable framework. ECG provides bulk supply of power to Enclave Power Limited. Enclave Power provides meters and bills all companies operating in the Free Zones Enclave with 99% revenue collection and nearly 100% uptime in power supply.

Reduction in commercial and technical losses will lead to affordable tariffs for everyone and bring relief to all users of electric power. We also aim in the medium term to achieve 100% gas utilisation for power production and eliminate the use of crude oil. 
 
This will save Ghana hundreds of millions of dollars spent on the importation of fuel oils for power production.

With regards to renewable energy, this administration will soon operationalise a Renewable Energy and Green Transition Fund to enhance efficiency and accelerate Ghana's transition to renewable energy. 

This initiative will drive investment in sustainable energy solutions, including solar street lighting, rooftop solar installations, off-grid solar systems, electric vehicle charging stations, and chargeable outboard motors. These measures will reduce dependence on the national grid and position Ghana as a leader in Africa's green energy transition.

Mr. Speaker, Ghana's petroleum sector has witnessed a precipitous decline, with crude oil production shrinking by more than 32%. This has resulted from high opacity levels, a hostile business climate, and excessive political interference, culminating in most major oil companies exiting and stalling upstream activities.

The decline in upstream activity is obvious to any person familiar with the twin cities of Sekondi-Takoradi. Just under a decade ago, the twin cities were the bustling epicentre of fabrication, logistics, and service activity associated with the upstream oil and gas sector. Unfortunately, my recent visit reveals many shut down facilities and many businesses that have packed and left.

Hundreds of workers have been laid off and left unemployed. I wish to assure the people of Sekondi-Takoradi and indeed the whole Western Region that we will breathe life back into the area.

We have commenced revitalisation of our upstream petroleum sector by creating a business-friendly and congenial environment for our partners and other prospective investors. My meetings with players in the upstream sector has been extremely positive and we have been assured of substantial investments running into billions of dollars in the very near future. 

Mr Speaker, Ghana has fertile lands, abundant water, and human resources. Yet, we face a paradox. Our food import bill continues to soar, reaching alarming levels of over US$2 billion annually. In addition, rising food inflation is burdening households and threatening livelihoods.
 
To address this, we are implementing several well-considered policies to grow the agricultural sector, including agro-processing. This will be backed by a reliable power supply, to meet our country's needs while advancing exports to earn foreign exchange and strengthen our economy.

The Agriculture for Economic Transformation Agenda (AETA) will modernise agriculture, enhance agribusiness, ensure food security, lower food inflation, boost exports, and create sustainable jobs.

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, onion, and pepper. 

Our poultry farm-to-table project will eliminate poultry imports and increase local production. Ghana imports 95% of its poultry needs, which costs over US$ 300 million annually. To reverse this trend, government’s plan is to revamp the poultry sector by investing in hatcheries, feed mills, processing, and distribution, working toward eliminating poultry imports. 

The Nkoko nkitinkiti project will cover fifty-five thousand (55,000) households producing eggs and fresh poultry for the market and help reduce the $300 million dollars we spend on importing chicken annually.

To strengthen the connection between agriculture and industry, we will prioritise value addition, processing, and distribution. This will position agriculture as a profitable and appealing activity, making it more attractive to young people. 

We will implement an AgriNext Programme to facilitate access to land banks by young farmers, connect graduates with opportunities in the agricultural value chain, and promote greenhouse agriculture among the youth. This initiative will benefit approximately 30,000 young people. 

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