President John Dramani Mahama has revealed that Ghana’s Sinking Fund contains a paltry $64,000 and GHS143,000, contradicting assertions by the previous Akufo-Addo administration that it left behind substantial financial buffers for debt repayment.
This revelation raises concerns about the country’s ability to meet its debt obligations amidst an already strained economy.
Speaking during his first State of the Nation Address (SONA) in his second term on Thursday, 27th February 2025, President Mahama addressed the financial difficulties inherited from his predecessor.
He dismissed claims of available reserves, stating, “There have been claims that buffers were left for ongoing debt repayments in 2025. The Sinking Fund shows a balance of only $64,000 in the dollar account and GHS143,000 in the Cedi account.”
The president further underscored the severity of Ghana’s debt crisis, stressing the urgent need for economic restructuring.
He warned that the country faces significant financial challenges due to the reckless accumulation of debt, which will require substantial sacrifices to correct.
“The repercussions of the accumulation and the economic mismanagement will require extensive work and sacrifices to repair,” he stated.
Mr Mahama also highlighted the magnitude of Ghana’s debt servicing obligations over the next four years, estimating that the country will need GHS280 billion to settle both domestic and external debts.
Of this amount, GHS150 billion will go towards domestic debt servicing, while GHS130 billion will be allocated for external debt repayments.
“In the next four years, our debt servicing will amount to GHS280 billion and comprises GHS150 billion for domestic debt and GHS130 billion in external debt servicing,” he emphasised.
With these revelations, President Mahama reaffirmed his administration’s commitment to restoring fiscal discipline and implementing measures to rebuild the economy.
He assured Ghanaians that his government would prioritise responsible financial management to prevent further economic deterioration.
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