Category: Local News

President John Dramani Mahama has disclosed that despite the previous government’s expenditure of GHS29.9 billion on the financial sector cleanup exercise, the sector remains in distress.

Delivering his first State of the Nation Address (SONA) of his second term on Thursday, February 27, 2025, he highlighted the persistent financial challenges and the heavy debt burden facing the country.

“The financial sector continues to struggle despite the reportedly spending of GHS29.9 billion on the financial sector cleanup exercise to date,” Mahama stated.

He further projected that Ghana’s debt servicing over the next four years will reach a staggering GHS280 billion, comprising GHS150 billion for domestic debt and GHS130 billion for external debt servicing. The president stressed the urgent need for decisive action to stabilize the financial sector and prevent further economic deterioration.

President John Dramani Mahama has expressed gratitude to Parliament for its swift vetting and approval of his ministerial nominees, describing it as an unprecedented achievement in Ghana’s Fourth Republic. Delivering his first State of the Nation Address (SONA) of his second term on Thursday, February 27, 2025, Mahama commended lawmakers for their efficiency and dedication. “I would like to convey my heartfelt gratitude to Parliament for the prompt vetting and approval of my nominees for ministerial positions. This efficiency is unmatched in the history of the Fourth Republic,” he stated.

He emphasized that such cooperation between the executive and legislature demonstrates the progress achievable when all branches of government work together in service to the nation. Over the past weeks, Parliament’s Appointments Committee has been actively vetting the President’s nominees. On January 21, 2025, lawmakers approved the first batch of ministers, including Dr. Cassiel Ato Baah Forson as Minister for Finance, Mr. John Abdulai Jinapor as Minister for Energy, and Dr. Dominic Akruitinga Ayine as Attorney-General and Minister for Justice.

Mahama urged Parliament to apply the same diligence and urgency in approving his deputy ministerial nominees, stressing the need for a fully operational government to effectively implement policies and programs.

His remarks underscore a collaborative spirit between the executive and legislature, fostering an environment conducive to governance and national development.

President John Dramani Mahama has assured Ghanaians that his administration will resolve the country’s economic crisis by the end of his four-year mandate.

Delivering his first State of the Nation Address in his second term to Parliament on Thursday, February 27, he acknowledged the severe economic challenges but vowed to put the nation back on a path of growth and prosperity.

“I John Dramanai Mhaam will fix the economic crisis confronting our country and reset it on a path of growth and prosperity.”

President Mahama added, “The state of the nation is not good. Our economy is in crisis, and the people of Ghana are suffering unprecedented hardships,” Mahama admitted. However, he emphasized his commitment to finding solutions rather than dwelling on the past. “It is not my style to lament and shift blame. I am therefore not here to lament, even though there is much to lament about,” he stated.

The president reaffirmed his track record of delivering on promises, referencing his past success in resolving Ghana’s energy crisis.

“I promised to fix ‘dumsor,’ and I fixed it. There was no power rationing or load management in Ghana,” he reminded the nation. Mahama’s address outlined his administration’s commitment to economic stabilization and recovery, signaling his readiness to implement policies that will steer the country towards financial stability and national progress.

Economist Professor Godfred Bokpin is anticipating a rise in the country’s Value Added Tax (VAT) to as much as 18% or slightly lower in the 2025 budget, as the government considers scrapping certain taxes.

The expected removal of the E-Levy, COVID-19 levy, and betting tax has raised concerns about how the government intends to bridge the resulting revenue gap.

Speaking in an interview with Citi Business News, Professor Bokpin suggested that the government may extend VAT to cover financial services as part of efforts to offset the expected shortfall. He believes the government will also likely restructure the VAT system by merging the standard levies with the standard VAT rate. “One thing I am expecting the NDC to do, which I think they will, is to merge the standard levies with the standard VAT rate. We are talking about levies of almost 6% while the standard VAT rate is 15%, so I think they should merge it and peg it at 18% or below,” he explained.

Professor Bokpin cautioned that any VAT rate exceeding 18% could be counterproductive, as it would negatively impact productivity and affect low-income earners.

He stressed that the upcoming budget, the first for the Mahama-led administration, must consider reforms that meet the expectations of both the private and public sectors.

“There is a lot for them to consider in this budget, and probably the reason why the stakes are high. The private sector is expecting some reforms, the public sector is expecting some reforms in terms of service delivery, and more importantly, procurement measures and ensuring value for money in our public procurement processes will also be important,” he noted. As the new administration looks to “reset” the economy, President Mahama has pledged to scrap certain taxes while promising to cut wasteful spending and enforce fiscal discipline.

Speaker of Parliament, Alban Bagbin, has announced the launch of an investigation into a petition against a Member of Parliament (MP) over alleged involvement in illegal mining, known as “galamsey.”

Speaking at a conference on Wednesday, February 26, where MPs and stakeholders finalized a strategy for responsible small-scale mining, Bagbin warned that Parliament would not shield any lawmaker found complicit in destructive mining activities.

“Let me be unequivocal in stating that Parliament will not tolerate any MP, regardless of position, who is found to be complicit in destructive mining activities,” he stated.

Revealing the ongoing probe, he added, “There’s a petition before me concerning an MP, and I have initiated an investigation. The member himself has appeared before me on that. We are not going to countenance it at all.”Bagbin also underscored the need for lawmakers to uphold accountability and integrity, stating, “As lawmakers, we must lead by example. Any MP caught engaging in or facilitating this type of existential threat to our lives will face the full rigours of the law—and I mean what I say.

“We cannot preach accountability and integrity to the nation while turning a blind eye to misconduct within our ranks.”

Cement prices across Ghana are poised for a sharp increase, with retailers planning to add approximately GHC 9 per bag starting Thursday, February 27th. Some retailers have already implemented the new rates. Samuel Azu, a cement retailer, confirmed the impending price adjustment, “We have not yet increased the price, but this will take effect starting Thursday. From then on, any customer purchasing a bag of cement will need to pay GHC 120.00.

“This price hike is essential because, without it, we won’t be able to restock. If you don’t have that amount, you won’t be able to buy cement in Tema or anywhere else in the country. The factories have explained that the government has raised port tariffs,” Azu explained.

Azu elaborated on the dependency on imported materials, stating “Since most materials used in cement production are imported, any increase in costs from the source directly impacts the final price.” Another retailer, Bismark Owusu Tetteh, expressed frustration over the frequent price fluctuations and emphasized the need for stricter regulatory enforcement.

Meanwhile, the Ghana Chamber of Construction Industry (GhCCI) has urged the government to intervene and stabilize the situation before it worsens. The Chamber’s CEO, Emmanuel Cherry, stressed the government’s role in addressing the issue.

“The best person to assist us is the government, as they are the ones with the power. The mandate lies with them. We can only talk or advise, but it is their decision to act or not.”

Cement prices were a contentious issue last year, sparking a standoff between the Cement Manufacturers Association of Ghana and former Minister of Trade and Industry, K.T. Hammond, over a Legislative Instrument (LI) aimed at regulating prices. The initiative introduced by the former minister received mixed reactions from stakeholders in the supply chain.

As the year progresses, price hikes continue, with some retailers citing rising port tariffs as the primary cause.

Chairman of the Trades Union Congress (TUC), Bernard Owusu, has highlighted key issues the union expects President John Dramani Mahama to address in his upcoming State of the Nation Address on Thursday, February 27.

In an exclusive interview on Channel One Newsroom, Owusu called for a clear explanation of the government’s “resetting agenda,” urging the president to provide specific details and actionable measures.

“We need clarity on what the government means by resetting Ghana and the concrete steps it plans to take,” he stated. He also stressed the urgent need for policies to tackle the rising cost of living and high unemployment rates, emphasizing that Ghanaians expect a well-defined plan to address these pressing challenges. Additionally, the TUC hopes to hear the government’s strategy for fostering national unity and reducing extreme partisanship.

On the issue of wages, Owusu called for a firm commitment to addressing wage disparities and improving overall pay conditions for workers.

The TUC remains hopeful that the president’s address will provide clear, actionable solutions to these concerns.

“There should be clarity on what the government means by resetting Ghana with specific details and measures. The government outlined measures to address the rising cost of living and unemployment rate. And also, we are looking forward to hearing the government put in measures to unify the country, moving away from this extreme partisanship towards what we call a new era of unity and consensus. “The wage situation in the country, a commitment to addressing the wage situation in the country and also adopting a living wage to replace the current minimum wage and to address pay inequalities, efforts to increase pension coverage, improve retirees’ income and implement pension unification, particularly for the informal economy,” he said

The latest data from the Ghana Statistical Service reveals that the country’s total exports in 2024 reached GH₵294.9 billion, surpassing imports of GH₵250.2 billion. This resulted in a trade surplus of GH₵44.7 billion, a significant increase compared to the previous year.

Gold was the leading export commodity, accounting for 55.3% of total export revenue, followed by petroleum and oils, which made up 17.8%. Cocoa and cocoa products contributed 8.4% to total exports.

The report also highlights a shift in trading patterns, with exports to African countries nearly doubling compared to imports, reinforcing Ghana’s role in intra-African trade under the African Continental Free Trade Area (AfCFTA). In the fourth quarter of 2024, exports totaled GH₵92.9 billion, while imports amounted to GH₵72.4 billion, resulting in a trade surplus of GH₵20.5 billion. This marks a substantial rise from the GH₵6.1 billion surplus recorded in Q4 2023.

Gold exports in this quarter were valued at GH₵49.8 billion, representing 53.6% of total export earnings. Crude petroleum, cocoa, and other cocoa products together accounted for 26.4% of exports. Imports remained stable, with mineral fuels and machinery being the top imported goods.