Ghana’s Economic Crisis: Finance Minister Reveals Grim Inheritance
Finance Minister Dr Cassiel Ato Forson has painted a grim picture of the economy inherited by the Mahama administration, describing it as collapsed and riddled with reckless spending, massive debt, and institutional failures.
In a detailed Facebook post, Dr Forson outlined the scale of the economic crisis left behind by the Akufo-Addo/Bawumia government, blaming it for derailing Ghana’s progress and plunging the country into fiscal chaos.
The Ajumako-Enyan-Esiam MP also revealed that the country’s IMF programme had completely gone off track, with key targets missed. Quoting the Deputy Managing Director of the IMF, Mr Bo Li, Dr Forson said, “the programme had deviated substantially from its targets by the close of 2024.”
The post went on to list a litany of issues inherited by the new administration, including:
Over GH¢67 billion in arrears and more than GH¢194 billion in contract commitments due to weak commitment controls and irresponsible spending;
A troubled energy sector bleeding over US$1.5 billion annually;
GH¢32 billion in cocoa sector liabilities;
A weakened financial sector still battling high non-performing loans, despite a GH¢30 billion clean-up effort;
Massive debt repayment obligations looming between 2026 and 2028, including GH¢20 billion, GH¢50.3 billion, and GH¢45.8 billion, respectively;
GH¢137 billion in short-term treasury bill maturities;
Depleted fiscal buffers, including an empty Sinking Fund;
Over 55 stalled projects tied to US$3 billion in undisbursed loans due to bilateral debt restructuring delays.
Dr Forson also went further to blame the 2022 economic meltdown on what he described as reckless spending and corruption by the former handlers of the economy.
“The root of our 2022 economic crisis can be traced directly to an overbearing fiscal dominance marked by reckless spending and corruption, compounded by poor leadership of the previous administration. The worsened fiscal situation spilt over into the monetary and external sectors, causing a rapid depreciation of the Ghana Cedi.”
“Monetary financing by the Bank of Ghana reached an all-time high, driving inflation to levels never seen in decades.”
“There was a complete lack of coordination between the Ministry of Finance and the Bank of Ghana, signalling the highest levels of incompetence in the management of the economy.”
Despite the dire situation, the Finance Minister said the Mahama administration has resolved not to make excuses but to focus on resetting Ghana’s economy.
“In the face of this dire inheritance bequeathed by the Akufo-Addo/Bawumia administration, the government of President John Dramani Mahama made a conscious decision not to make excuses, but to reset the country,” he stressed.
