SONA 2025: A nation at a turning point

By Samuel Lartey(Prof)

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On February 27, 2025, President John Dramani Mahama stood before Ghana’s 9th Parliament to deliver a State of the Nation Address (SONA) that captured the stark realities of a nation in economic distress.

His words resonated beyond political rhetoric, reflecting the deep frustration of Ghanaians grappling with an economic downturn, rising debt, unemployment, and governance challenges.

“The state of our nation is not good,” the President admitted, but instead of dwelling on lamentations, he delivered a bold declaration: “I, John Dramani Mahama, will fix the economic crisis confronting our country and reset it on a path of growth and prosperity.”

What makes SONA 2025 different from previous ones is Mahama’s historic majority in Parliament. This electoral advantage presents a unique opportunity to implement the critical policies needed to reset Ghana’s economic trajectory. With Parliament now largely aligned with the President’s vision, how can Mahama leverage this mandate to make his promises a reality?

The Power of a Majority Parliament: Enabling Economic Recovery

With an unprecedented parliamentary majority, Mahama holds the legislative power needed to fast-track economic and governance reforms. This advantage allows him to:

1. Pass Fiscal Responsibility and Debt Management Laws

• Establish legal caps on borrowing and government expenditure to prevent excessive debt accumulation.
• Reform tax policies to increase revenue collection without overburdening businesses.

2. Streamline Government Spending and Reduce Waste

• Enforce the Public Financial Management Act to eliminate fiscal indiscipline.
• Strengthen anti-corruption measures, including the proposed “Operation Recover All Loot” (ORAL) initiative to reclaim stolen public funds.

3. Fast-Track Infrastructure and Social Policies

• Secure budgetary approval for the $10 billion Big Push Initiative to boost infrastructure development.
• Legislate the Free Primary Healthcare Programme to ensure universal access to medical services.

4. Accelerate Economic Diversification and Job Creation

• Pass laws to support the 24-Hour Economy Initiative, boosting productivity in key industries.
• Enhance legal frameworks to facilitate public-private partnerships in agriculture, energy, and digitalisation.

With Parliament’s backing, Mahama has the legislative muscle to push through these critical reforms without the gridlock that has plagued previous administrations.

Key Promises in SONA 2025: Resetting Ghana’s Economic Course

1. Fiscal Consolidation and Debt Restructuring

• Ghana’s public debt stands at GHS 721 billion, with state-owned enterprises like ECG and COCOBOD adding further liabilities.
• The administration plans to restructure debt servicing, increase revenue collection, and cut wasteful expenditure.
• The government has already honored a GHS 6.081 billion coupon payment under the Domestic Debt Exchange Programme (DDEP).

2. Economic Growth and Industrialisation

• The 24-Hour Economy Initiative will be the cornerstone of job creation, unlocking new employment avenues.
• The Adwumawura Programme will support 2,000 innovative businesses with training and startup capital.
• Government will establish specialized economic zones to boost manufacturing and exports.

3. Energy Security and Power Sector Reforms

• Independent Power Producers (IPPs) and ECG have debts exceeding GHS 70 billion, threatening power stability.
• Government will enforce a Cash Waterfall Mechanism (CWM) to ensure revenue accountability.
• Private sector participation in metering and billing will reduce ECG’s 45% revenue losses.

4. Agricultural Transformation and Food Security

• Nkoko Nkitinkiti Project to support 55,000 households in poultry farming, cutting $300 million poultry import bill.
• The Feed Ghana Programme will boost rice, maize, and soybean production, reducing food imports.
• Establishment of Farmer Service Centres will provide mechanisation, seeds, and fertilisers nationwide.

5. Education Reform and Free SHS Enhancements

• Restoration of Parent-Teacher Associations (PTAs) to improve school management.
• No-Fee University Admission Policy to remove financial barriers to tertiary education.
• Expansion of STEM and TVET education to match industry demands.

6. Governance, Corruption, and Public Sector Efficiency

• A new Presidential Anti-Corruption Unit will fast-track investigations and prosecutions.
• Operation Recover All Loot (ORAL) will track and retrieve stolen public funds.
• Reform of procurement laws to eliminate sole-sourcing and promote competitive bidding.

Stakeholder Participation: Who Must Make This Work?

1. Government Agencies:

• Ministries, Departments, and Agencies (MDAs) must implement austerity measures and accountability frameworks.
• Ghana Revenue Authority (GRA) must expand the tax net to capture informal sector businesses.

2. Private Sector:

• Businesses must align with the 24-Hour Economy Initiative, driving innovation and job creation.
• Banks and financial institutions must support SMEs with affordable credit facilities.

3. Citizens:

• Ghanaians must support local industries and reduce reliance on imports.
• The public must demand accountability from policymakers and participate in governance.

Resetting Ghana: The Path Forward

To successfully reset Ghana’s economy, the government must focus on:

1. Strict Fiscal Discipline – Limit borrowing, increase tax compliance, and curb corruption.
2. Infrastructure and Industrialisation – Leverage the Big Push Initiative to create jobs and improve productivity.
3. Energy Sector Reforms – Ensure ECG accountability and shift to renewable energy sources.
4. Education and Skill Development – Expand STEM and TVET to equip youth with industry-ready skills.
5. Agriculture and Food Security – Reduce food imports through targeted investments in local farming.

Conclusion:

A Mandate for Action, Not Excuses

President Mahama’s SONA 2025 was not just a speech; it was a strategic roadmap for economic revival. His parliamentary majority offers an unprecedented opportunity to fast-track critical reforms without opposition roadblocks.

However, having the numbers in Parliament alone is not enough. Execution will demand bold decision-making, cross-sector collaboration, and citizen engagement.

Ghana stands at a critical crossroads—one path leads to renewed economic prosperity, while the other spirals into deeper crisis. The responsibility to choose wisely falls on the government, Parliament, the private sector, and the people.

The reset has begun, but its success depends on one question: Will Ghana seize this moment to transform, or will it squander yet another opportunity?

The time for action is now.