By Enoch 
In a bold assertion during his final State of the Nation Address (SONA), President Nana Akufo-Addo declared that Ghana is not broke, despite ongoing debt challenges. The President emphasized that his administration is leaving the country with gross international reserves of almost $8 billion, a figure he claims surpasses the $6.2 billion inherited in 2017.
Economic Growth and Reserves
President Akufo-Addo highlighted the growth rate and international reserves as key indicators of Ghana’s financial health. He stated that the country’s growth rate is projected to reach 6.7% this year, a significant improvement from the 3.4% growth rate his administration inherited in 2017. This robust growth is seen as a testament to the government’s effective economic policies and initiatives.
The President also noted that private sector credit grew by 28.8% in October 2024, reflecting a positive economic trajectory. This growth in private sector credit indicates increased confidence in the economy and suggests that businesses are experiencing greater access to funding, which can spur further economic development.
Debt Management and Fiscal Discipline
Addressing criticisms of economic mismanagement, President Akufo-Addo defended his administration’s commitment to fiscal discipline. He announced that the government has begun repaying some of its debts, including honoring coupon payments to EuroBond holders. This move is seen as a step towards stabilizing the country’s financial standing and restoring investor confidence.
The President highlighted several measures undertaken to manage the nation’s debt. These include restructuring existing debts to make them more manageable and ensuring that new borrowing is directed towards high-impact projects that can generate revenue and drive economic growth. By prioritizing fiscal discipline, the government aims to create a sustainable financial environment for future administrations.
Investment in Infrastructure
One of the key achievements President Akufo-Addo emphasized was the significant investment in infrastructure. He outlined various projects, such as the construction of roads, bridges, and hospitals, which have been pivotal in stimulating economic growth and improving the quality of life for Ghanaians. These infrastructure projects have not only created jobs but also enhanced connectivity and accessibility across the country.
The President also mentioned the ongoing efforts to improve the energy sector, ensuring a stable and reliable power supply. This is crucial for the growth of industries and businesses, which rely heavily on consistent energy availability. By addressing the energy challenges, the government aims to foster a conducive environment for economic activities.
Criticism and Opposition at SONA
Despite the President’s optimistic outlook, his claims have faced criticism from observers and opposition parties. Critics argue that the restructuring of debts and the need for an IMF bailout indicate underlying financial challenges. Economist Alfred Appiah pointed out that the country’s inability to pay its debts raises questions about the true state of Ghana’s economy.
Opposition leaders have also voiced concerns about the rising cost of living and unemployment rates. They argue that while the government’s initiatives have led to macroeconomic improvements, the benefits have not yet trickled down to ordinary citizens. This disconnect has led to calls for more inclusive policies that address the immediate needs of Ghanaians.
President Akufo-Addo’s final SONA has sparked a debate about Ghana’s economic health. While he insists that the country is not broke and is leaving behind robust financial reserves, critics remain skeptical. The President’s focus on economic growth, debt management, and infrastructure development underscores his administration’s efforts to build a resilient economy.
Reasons For Ghanaian Youth Protest
As Ghana navigates its economic challenges, the focus will be on maintaining fiscal discipline and fostering sustainable growth. The incoming administration will have the task of building on the foundations laid by President Akufo-Addo’s government and addressing the concerns raised by critics. The true impact of these policies will unfold in the years to come, shaping the economic future of Ghana.
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