President John Dramani Mahama has emphasized the urgent need for disciplined debt restructuring to revive Ghana’s economy. Speaking during his keynote speech at the Ghana CEO Summit in Accra, he outlined plans to stabilize the economy, stressing that past fiscal mismanagement necessitated bold reforms.
He lamented the abandonment of safeguards established by his 2013–2016 administration. “From 2013 to 2016, Ghana issued four euro bonds, all without default, and these were anchored in a sinking fund mechanism designed to ensure repayment. We applied about $335 million from our oil-funded sinking fund to settle maturing euro bond liabilities. Before we left office, we left sufficient reserves, enabling the next administration that came after us to pay off the balance in 2017 of the 2007 bond without distress.
Tragically, this architecture was dismantled. Between 2017 and 2022, debt accumulation skyrocketed, and yet the framework to ensure repayment was abandoned,” he said. Mahama attributed Ghana’s economic crisis to weak debt restructuring frameworks, opaque collateralization, and eroded investor confidence. “Investors, businesses, and pensioners suffered crushing losses through the domestic debt exchange program, with crude haircuts eroding trust in the financial system.”
To reverse this, Mahama proposed;
- Strict IMF program adherence
President John Dramani Mahama pledged to reopen capital markets, linking borrowing to viable projects to avoid unsustainable debt restructuring burdens. He said, “We expect to conclude the fourth review of the IMF program in June 2025, with a target to exit at the end of the program in 2026.” He hinted that after the IMF program, the policy support instrument framework will be used to signal Ghana’s return to responsible, non-borrowing engagement with the fund.
- Reopening domestic and international capital markets.
President Mahama said his administration was working to reopen Ghana’s own markets in collaboration with the IMF and our development partners, the Ghana Stock Exchange, and local banks.
He said future borrowing will be linked to self-financing, commercially viable projects, particularly by MDAs, MMDAs and SOEs, ensuring value for money and sustainable repayment.
- Strengthening sovereign funds and local government financing.
“We’ll amend the Public Finance Shell Management Act and Constitution to make contributions to the sinking and stabilization funds mandatory,” he said.
President John Mahama said a certain percentage of funds will be committed to sinking and stabilization funds, with MMDAs required to issue infrastructure and municipal bonds secured against a portion of their district assembly’s common fund to fund infrastructure projects such as roads, schools, water systems, and local industry in their districts.
- Clearing verified arrears and rationalizing public investment.
The president mentioned that a report on arrears and government commitments from the auditor general is expected by the end of May, after which his administration will commence to clear legitimate arrears transparently and enforce commitment controls.
However, the President was emphatic that “new projects will be prioritized based on need, funding availability, and alignment with our national interests.”
5. Accelerating public financial management reforms
To curb corruption, the president said his administration will reactivate stored reforms, including the Treasury Single Account (TSA), the Integrated Tax Administration System, and real-time budget monitoring tools.
6. Revitalizing exports through Ghana EXIM Bank
President Mahama detailed how EXIM Bank will be repositioned to prioritize funding for agro-processing, light manufacturing, and SMEs as part of broader efforts to enhance foreign exchange earnings and create employment opportunities in Ghana’s real economy.
The president also announced the rollout of the Agriculture for Economic Transformation Agenda, which will channel substantial investments into high-value tree crop cultivation. The initiative will target oil palm, cocoa, cashew, shea, and other premium agricultural commodities.
Mahama emphasized Ghana’s favorable position in global commodity markets, noting the strong performance of the country’s two major export products. “With two of our major export commodities, gold and cocoa, enjoying a good run in international markets, we will build our reserves and buffers to create the resilience to withstand any future global shocks,” he indicated.
7. Building Ghana into a regional hub for trade and investment.
President Mahama said his administration envisions Ghana as West Africa’s commercial, transport, and digital services hub.
He said research will prioritize port expansion, financial services, health, education, and industrial corridors, linking Ghanaian businesses to the African Continental Free Trade Area and beyond.
8. Infrastructure development to stimulate growth
A key proposal by the President involved infrastructure development. He said, “Infrastructure investment is not optional.
We’ll resume priority projects in the roads, energy, water, housing, and urban renewal sectors.” The president emphasized that these projects will be prioritized “not through reckless borrowing but through innovative financing systems.” He highlighted projects like the Big Push as ways through which these projects will be strategically carried out.
