SONA 2026: President Mahama says Ghana’s debt dragged nation into hardship

President John Dramani Mahama has described the country’s debt burden as a shackle that dragged the nation into hardship and despair, insisting that his government confronted the crisis with action rather than rhetoric.

Delivering his second State of the Nation Address on Friday, February 27, he recounted that on December 19, 2022, Ghana, under the President Akufo-Addo administration, declared its inability to meet debt obligations, placing a moratorium on domestic and foreign debt repayments and entering a complex debt restructuring process.

“Ghana's debt became a shackle on our economic progress, dragging our nation down into hardship and despair,” he stated.

As part of the restructuring strategy, he explained, the government established sinking funds, restructured obligations, and pursued bilateral agreements. He reported concrete outcomes from these measures: public debt fell by Gh¢82.1 billion, and the debt-to-GDP ratio declined from 61.8 per cent to 45.3 per cent, calling this one of the sharpest reductions in Ghana’s history.

The President also highlighted an early repayment milestone, noting that the government had settled a US$709 million eurobond ahead of schedule, completing US$1.4 billion in debt service that had been slated for 2025. He presented this early settlement as evidence of Ghana’s restored credibility and as a factor that drew positive attention from international ratings agencies.

Mr Mahama linked the restructuring and early repayments to improved sovereign credit perception, noting that Fitch, Moody’s, and S&P all upgraded Ghana’s ratings—the first triple upgrade in many years.

He described the debt restructuring as central to restoring fiscal stability, reducing borrowing needs, and enabling broader economic recovery.