SONA 2026: “Dec. 19, 2022 was one of Ghana’s darkest economic days” - Prez. Mahama

President John Dramani Mahama has described December 19, 2022, as “one of the darkest days in Ghana’s economic history,” recalling the moment the country declared a debt default and suspended repayments on both domestic and external obligations.

Speaking during the 2026 State of the Nation Address (SONA) in Parliament, President Mahama reflected on the economic turmoil that followed the announcement, noting that the debt crisis had become a major obstacle to national progress.

“On that day, Ghana declared its inability to honor its debt obligations,” he told lawmakers, adding that the country subsequently entered a complex debt restructuring process that weighed heavily on households and businesses.

President Mahama said his administration confronted the crisis “with action, not rhetoric,” establishing sinking funds, renegotiating obligations, and pursuing bilateral agreements to stabilize the economy.

According to him, public debt has fallen by GH¢82.1 billion, reducing the debt-to-GDP ratio from 61.8% to 35.3% — one of the sharpest reductions in the country’s history.

He also disclosed that Ghana settled a US$709 million Eurobond ahead of schedule in early January, completing a total US$1.4 billion debt service obligation originally slated for 2025.

The President noted that international rating agencies — Fitch Ratings, Moody's Investors Service, and Standard & Poor's — have since upgraded Ghana’s credit outlook, describing it as a rare “triple upgrade.”

President Mahama further highlighted what he characterized as strong economic recovery indicators. Ghana’s GDP is projected to reach $113 billion in 2025, up from $83 billion at the end of 2024, with average growth of 6.1% recorded over the first three quarters of the year.

He said inflation, which peaked at 54.1% in late 2022, declined to 23.6% by the end of 2024 and further dropped to 3.8% by January 2026 following monetary tightening and currency stabilization measures.

Food inflation and prices of locally produced goods, he added, have also seen significant reductions, easing pressure on household budgets.

President Mahama also pointed to falling petrol prices — from GH¢15.2 to GH¢10.7 per litre, with recent dips below GH¢10 — as evidence of improved macroeconomic stability and exchange rate management.

The President framed the economic turnaround as part of his administration’s broader reset agenda, declaring that Ghana’s credibility on the global stage has been restored.

“Ghana is rising,” he told Parliament, stressing that the painful lessons of December 2022 have informed a renewed commitment to fiscal discipline, economic resilience, and long-term stability.

Story by: Hawa Abubakar