Mahama’s full State of the Nation Address

In a national address today, President John Dramani reaffirmed his commitment to resetting the country's trajectory and driving it towards a positive future.

Among his key assurances, he pledged to continue payments to bondholders without disruption and to maintain allowances for teacher trainees. He also emphasized his determination to hold accountable those responsible for any mismanagement and to restore fiscal discipline across all sectors.

Below is his full speech

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.