Ghana’s Energy Crisis Deepens: IPPs Threaten Shutdown Over GHS 70B Debt

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February 27, 2025

Accra, Ghana – February 27, 2025 – Sweet Melodies FM – During his State of the Nation Address today, President John Dramani Mahama announced sweeping tax reforms aimed at improving revenue collection and expanding Ghana’s tax base. The President addressed the nation on the pressing need to enhance fiscal discipline and ensure the country has the necessary resources to fund essential public services and infrastructure projects.

Government to Tackle Tax Evasion and Expand Base

With Ghana facing a public debt of GHS 721 billion and a strained economy, President Mahama outlined the government’s commitment to increasing revenue without burdening ordinary Ghanaians. He acknowledged that a key challenge to fiscal sustainability has been the country’s low tax compliance and tax evasion.

“We will eliminate loopholes and improve enforcement to ensure that everyone contributes fairly to the nation’s development,” Mahama stated.

The government’s tax reforms will focus on increasing the efficiency of tax collection systems, utilizing digital tools, and targeting previously untapped sectors of the economy.

Introducing Digital Solutions to Tax Collection

A core aspect of the proposed reforms will be the digitalization of tax collection systems. President Mahama revealed that the government will implement new online platforms and mobile tax services, aimed at making tax payments more convenient, transparent, and accessible for businesses and individuals alike.

“The future of tax collection in Ghana lies in digital solutions. We will harness technology to make the system more efficient and less prone to fraud,” Mahama said.

Strengthening Taxpayer Education and Compliance

Alongside digitalization efforts, the government will invest in taxpayer education programs to inform citizens and businesses about the importance of tax contributions and the benefits of a compliant system.

“These reforms will not work without the full support and cooperation of the people. We need Ghanaians to understand the need for taxes to fund critical services such as education, healthcare, and infrastructure,” the President emphasized.

Targeting the Informal Sector

Another significant element of the tax reform plan is bringing more businesses in the informal sector into the formal tax system. Mahama acknowledged that the informal sector accounts for a large portion of Ghana’s economic activity but contributes only a small share of tax revenues.

The government will work with local businesses to formalize operations and ensure they are registered for tax purposes.

“We will ensure that informal businesses are supported as they transition to the formal sector, and we will provide incentives to encourage voluntary registration,” Mahama stated.

Balanced Approach to Taxation

While focusing on enhancing revenue, Mahama reassured Ghanaians that the government’s tax policies would not overburden the public. He emphasized that the reforms would aim for fairness and equity, ensuring that the tax system works for all Ghanaians, particularly the most vulnerable.

“We are not increasing taxes on the ordinary citizen. Instead, we are making sure that the system is more efficient and that those who can afford to contribute more to the nation do so,” Mahama said.

Strengthening Tax Agencies

As part of the broader reforms, President Mahama also announced that the Revenue Authority and other tax-related agencies would be strengthened to enhance their capacity to collect taxes effectively. He highlighted the importance of professionalism and integrity within these agencies.

“We will ensure that our tax agencies have the resources and training needed to carry out their duties with integrity,” Mahama emphasized.

A Call for National Support

In his closing remarks, Mahama called on all Ghanaians to support the government’s tax reform efforts. He reminded the public that these measures are essential for securing the country’s future and ensuring that Ghana can fund its own development without relying on external borrowing.

“Together, we can build a stronger, more self-reliant economy. Let us all contribute to nation-building,” he said.

Sweet Melodies FM will continue to follow the developments of these reforms and keep our listeners informed as the government moves forward with its tax collection improvements.

Fewer Ministers, Lower Spending: Mahama’s Cost-Cutting Measures Explained

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February 27, 2025

Accra, Ghana – February 27, 2025 – In a move to address the country’s economic challenges, President John Dramani Mahama has announced significant cost-cutting measures aimed at reducing government expenditure. During his State of the Nation Address to Parliament, Mahama outlined plans to reduce the number of ministers, curtail non-essential spending, and implement a more efficient and transparent government structure.

Cabinet Downsizing to 60 Ministers

As part of his cost-cutting strategy, President Mahama revealed that the current number of government ministers will be reduced from 86 to 60. This decision, which is expected to save millions of Ghana cedis, reflects Mahama’s commitment to reducing the size and cost of the government apparatus.

“We must lead by example. By streamlining the number of ministers and ensuring that our resources are used effectively, we can better serve the people of Ghana,” Mahama stated.

The President also emphasized that this reduction would not affect the quality of governance. Instead, he said, it would lead to a more focused and efficient administration that prioritizes the nation’s most pressing needs.

Cutting Non-Essential Government Expenditure

In addition to downsizing the Cabinet, Mahama pledged to cut back on non-essential government expenditure. This includes reducing the costs associated with luxury vehicles, overseas travel, and unnecessary public events. These measures are designed to ensure that every cedi spent is directed toward critical areas such as health, education, and infrastructure.

“Every penny counts in these challenging times. We will prioritize projects that create jobs, stimulate growth, and provide essential services to Ghanaians,” Mahama said.

Efficient Public Spending and Budgetary Discipline

To further ensure fiscal discipline, the President announced plans to introduce a more rigorous budget monitoring system, which will focus on transparency and accountability. He noted that all government projects would undergo strict scrutiny, and only high-priority initiatives would receive funding.

“We are committed to eliminating waste and ensuring that every cedi spent contributes to the development of our nation,” Mahama emphasized.

Strengthening Tax Collection and Revenue Generation

While reducing government spending, Mahama also recognized the need to improve revenue generation. He pledged to enhance tax collection efforts and close loopholes in the tax system to ensure that the country’s tax base is expanded.

The President stressed that these revenue increases would not burden ordinary Ghanaians but would instead focus on ensuring fairness and inclusivity in the tax structure.

Austerity and Accountability in Governance

Mahama’s cost-cutting measures form part of a broader plan to restore economic stability in Ghana, as the country grapples with a GHS 721 billion debt and high inflation. By reducing government waste and improving efficiency, Mahama hopes to build a more sustainable and accountable government that can focus on the nation’s development needs.

“We understand that these decisions may not be easy, but they are necessary to secure a better future for Ghana,” Mahama stated. “The sacrifices we make today will pave the way for a stronger, more prosperous Ghana tomorrow.”

A Unified Effort for Ghana’s Economic Future

In his closing remarks, Mahama called for unity among Ghanaians, urging citizens to support the government’s austerity measures. He reminded the nation that the challenges ahead would require the cooperation of all sectors of society, including businesses, civil society, and political leaders.

“The road to recovery is long, but with the collective effort of all Ghanaians, we will rebuild our economy and ensure prosperity for future generations,” he concluded.

The President’s announcement of these cost-cutting measures sets the stage for what will likely be a challenging but necessary period of fiscal austerity. With these actions, Mahama aims to steer the nation toward economic recovery while maintaining a focus on essential public services.

National Economic Dialogue: Mahama Calls for Collective Fiscal Solutions

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February 27, 2025

President John Dramani Mahama has called for a National Economic Dialogue as part of a comprehensive effort to address Ghana’s economic challenges. During his State of the Nation Address to Parliament, Mahama emphasized the need for collective action to stabilize the economy, reduce public debt, and set the country on a path toward sustainable growth.

A National Call to Action

In his address, President Mahama highlighted the gravity of Ghana’s current economic crisis, including an unsustainable GHS 721 billion debt, high inflation, and a depreciating cedi. He stressed that the crisis requires urgent, coordinated action from all sectors of society.

“We cannot address these challenges in isolation,” Mahama said. “The road to recovery requires a broad and inclusive dialogue that brings together policymakers, business leaders, civil society, and ordinary Ghanaians.”

The Role of the National Economic Dialogue

The National Economic Dialogue will be a key platform for identifying practical, homegrown solutions to Ghana’s fiscal problems. Mahama revealed that the dialogue would involve economists, industry experts, and representatives from various sectors of society. The goal is to craft a fiscal consolidation plan that focuses on long-term stability while addressing immediate concerns, such as inflation and debt management.

“We need all hands on deck to develop a clear, unified plan,” the President stated. “We must make difficult decisions, but we must also be united in our vision for a prosperous future.”

Key Areas of Focus

The dialogue will cover a wide range of issues, including revenue generation, fiscal discipline, reducing public debt, and implementing structural reforms in key sectors such as energy, agriculture, and education.

Mahama also mentioned that special attention would be given to the country’s debt restructuring process, which will involve negotiating favorable terms with international creditors to ease the burden on the nation’s finances.

Government’s Commitment to Action

Mahama assured Ghanaians that his administration is committed to implementing the outcomes of the National Economic Dialogue, no matter how challenging.

“We are committed to fiscal responsibility and sustainable economic management. The dialogue will provide the roadmap, and we will put the solutions into action,” he emphasized.

A Call for Unity and Collective Responsibility

As the nation grapples with its economic crisis, President Mahama concluded by calling for unity and patience as Ghana works through the challenges ahead. He encouraged Ghanaians to remain hopeful and to actively participate in the national discourse to help create solutions that benefit everyone.

“Together, we can overcome this crisis. This is a challenge for all of us, and it requires the collective effort of every citizen to ensure that we build a better future for the generations to come,” he said.

The National Economic Dialogue is expected to kick off in the coming weeks, with the results shaping the government’s policy approach in the months to come. The nation now looks to this inclusive platform for hope and direction in navigating Ghana’s toughest economic period in recent history.

There will be no secrecy in how much government spends on national teams – President Mahama

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February 27, 2025

Accra, Feb.27, GNA – President John Dramani Mahama has emphasised the need for transparency on money spent on various Ghanaian national teams and other sporting associations.

President Mahama said this during his State of Nations Address (SONA) to Parliament on Thursday, February 27, 2025.

According to President, the taxpayers ought to know what goes into the expenditure on the national teams, especially the Black Stars.

He also tasked Mr. Kofi Adams, the Minister for Sports and Recreation, to hold the Ghana Football Association (GFA) accountable in respect to their financial dealings.

“Next month, the senior national team, the Black Stars, now a pale shadow of its former glory, will now play two World Cup qualifying matches.

“I have instructed my Office and the Minister to hold the GFA accountable to the people of Ghana as we prepare for these games, especially regarding the budget the GFA has presented for the two matches.

“There should be no secrecy in how much the government spends on the national teams. The budget presented by the GFA and the other sports associations must be known by the public.

“After all, it is the taxpayer’s money that is used to fund these activities. The reduction in government expenditure and waste reduction applies to all sectors of the economy, including the Ministry of Sports and Recreation.

President Mahama also indicated the establishment of a Schools Sports Authority, which would organise structured school competitions to identify talent essential for nurturing talent in the future.

He also stated that the government was committed to the reimbursement of the national sports stadium, including the completion of various national youth resources centres across the country.

GHS 721 Billion Debt: Mahama Outlines Plan to Fix Ghana’s Economy

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February 27, 2025

Accra, Ghana – February 27, 2025 – President John Dramani Mahama has unveiled a comprehensive strategy to address Ghana’s staggering public debt of GHS 721 billion, as he delivered his first State of the Nation Address since returning to office. He attributed the nation’s dire economic situation to excessive borrowing and mismanagement by the previous administration, pledging swift action to restore financial stability.

Inherited Economic Crisis

Mahama painted a grim picture of Ghana’s economic outlook, citing high inflation (23.8% in 2024), a depreciating cedi, and a struggling private sector. The country’s debt burden, he said, has placed immense pressure on government finances, limiting its ability to fund critical infrastructure, health, and education projects.

“We have inherited a broken economy, and the numbers do not lie,” Mahama stated. “But let me assure Ghanaians that we will take the tough decisions necessary to stabilize the economy and set it on a path to sustainable growth.”

Debt Restructuring and Fiscal Discipline

To manage Ghana’s ballooning debt, the President announced plans to renegotiate repayment terms with international creditors while implementing a homegrown fiscal consolidation plan. The government will also prioritize critical expenditures, ensuring that public funds are channeled into productive sectors rather than recurrent costs.

A National Economic Dialogue will be held in the coming months, bringing together economic experts, policymakers, and private sector leaders to design a roadmap for recovery.

Cutting Government Expenditure

In a major cost-cutting move, Mahama revealed that his administration will reduce the number of ministers to 60, a decision aimed at curbing excessive government spending. Additionally, non-essential expenditures will be slashed, and a strict budget monitoring system will be introduced to prevent financial leakages.

“We will lead by example and ensure that public funds are used efficiently,” he emphasized.

Boosting Revenue and Strengthening Tax Collection

Mahama’s government also plans to expand Ghana’s tax base while improving efficiency in revenue collection. However, he assured the public that new tax policies will not overburden ordinary Ghanaians.

“We will eliminate loopholes, enhance digital tax collection systems, and ensure fairness in the tax structure,” he said.

Stimulating Economic Growth

To revive economic growth, the government will focus on key sectors such as agriculture, manufacturing, and energy. Programs like the Agriculture for Economic Transformation Agenda (AETA) and the Feed Ghana Programme will be expanded to boost local food production, reduce imports, and create jobs.

Additionally, the government is set to increase investment in renewable energy and infrastructure development, ensuring that growth is both sustainable and inclusive.

A Call for National Unity

President Mahama concluded his address by urging Ghanaians to rally behind his administration’s recovery plan. “Fixing this economy will require patience, resilience, and a collective effort. Together, we will overcome these challenges and build a stronger Ghana,” he declared.

With the country facing a tough road ahead, all eyes are now on the government to deliver on its promises and steer Ghana toward economic stability.

Mahama Declares Ghana’s Economy in Crisis: Bold Austerity Measures Announced

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February 27, 2025

Accra, Ghana – February 27, 2025 – President John Dramani Mahama has declared Ghana’s economy to be in a state of crisis, citing high inflation, a depreciating cedi, and an unsustainable debt burden. Speaking during his State of the Nation Address to the 9th Parliament of Ghana, Mahama outlined a series of bold austerity measures aimed at stabilizing the economy and restoring fiscal discipline.

According to the President, the government inherited a severely weakened economy, with inflation reaching 23.8% in 2024 and public debt soaring to GHS 721 billion. He blamed excessive borrowing and economic mismanagement by the previous administration for the current financial turmoil.

Austerity Measures to Cut Government Spending

To curb government expenditure, Mahama announced a significant reduction in the number of ministers from 86 to 60, marking one of the most drastic cabinet downsizing measures in recent history. He also pledged to reduce non-essential government spending, enforce strict budgetary discipline, and improve tax collection to boost revenue.

“The era of wasteful spending is over. We must all make sacrifices to restore economic stability,” Mahama stated.

Additionally, a National Economic Dialogue will be convened to develop a homegrown fiscal consolidation plan, bringing together economists, business leaders, and policymakers to find sustainable solutions for Ghana’s economic recovery.

Debt Management and Economic Recovery

With Ghana’s debt crisis worsening, the President emphasized the need for strategic debt restructuring and the prioritization of critical infrastructure projects. He assured the public that his administration would engage international creditors and development partners to negotiate more favorable repayment terms.

On revenue generation, Mahama reiterated his government’s commitment to expanding the tax base while ensuring fairness in tax collection. “We will not burden the ordinary Ghanaian with excessive taxes, but we will ensure that everyone contributes their fair share,” he said.

Call for Unity in Economic Recovery

In his concluding remarks, President Mahama called on Ghanaians to unite in the face of economic hardship, urging businesses, civil society groups, and political stakeholders to support his government’s recovery efforts.

“The road ahead will not be easy, but with discipline, determination, and the collective effort of all Ghanaians, we will rebuild our economy and create a better future for generations to come,” he declared.

The coming months will be crucial as Mahama’s administration begins to implement these austerity measures. Many will be watching closely to see if these policies can steer Ghana’s economy back on track.

NGO condemns Ayariga’s “discriminatory statements,” calls for retraction

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February 27, 2025

Anloga, (V/R), Feb 27, GNA-Developers Net, an orgganisation into youth advocacy and skills development, has strongly condemned recent comments made by Mr. Osman Ayariga, the Acting Chief Executive Officer of the National Youth Authority (NYA).

The group is demanding an immediate retraction of his remarks.

He should also make a firm commitment to impartiality in the Authority’s operations.

Mr. Ayariga, during an interview recently on national television stated: “My first preference is the NDC youth; that, I am not going to lie about…” a statement, which was a reply to issues related to job recruitment for the youth.

In the view of Developers Net, the statement attributed to Mr. Ayariga suggested that he would consider members of the ruling National Democratic Congress (NDC) for job opportunities at the detriment of the general Ghanaian youth.

The comment sparked widespread criticism for an apparent bias in employment opportunities within the National Youth Authority.

In an official statement released by the organisation on Thursday, February 27, 2025, made available to Ghana News Agency, Developers Net has described the statement as “discriminatory and biased.”

Mr. Ayariga, during an interview recently on national television stated: “My first preference is the NDC youth; that, I am not going to lie about…” a statement, which was a reply to issues related to job recruitment for the youth.

In the view of Developers Net, the statement attributed to Mr. Ayariga suggested that he would consider members of the ruling National Democratic Congress (NDC) for job opportunities at the detriment of the general Ghanaian youth.

The comment sparked widespread criticism for an apparent bias in employment opportunities within the National Youth Authority.

Developers Net argued that Mr. Ayariga’s comment directly contradicts the fundamental principles of fairness, equality and inclusivity that should govern any public institution responsible for youth development and employment.

The organisation also posited that the NYA, as a state institution, has legal mandates to carry out its duties.

Mr. Yonnah Keleku, founder and project lead for Developers Net, in an exclusive discussion with the Ghana News Agency, reiterated that, said: “It is prudent to note that, the National Youth Authority is a state institution mandated to promote the welfare of all Ghanaian youth irrespective of their political affiliation, ethnicity, or background.

“Any attempt to create an undue advantage in favour of a certain political group is not only ethically ignominious but also in direct violation of Ghana’s constitutional principles and legal frameworks that uphold fairness and non-discrimination.”

In the statement, the group emphasised that Mr. Ayariga’s comments breach several legal provisions in Ghana’s laws, including, “Article 17 of the 1992 Constitution, which ensures that all persons are equal before the law and prohibits favouritism based on political, ethnic, or economic status.

It further referenced Article 296 of the 1992 Constitution, which it noted mandates state officials to exercise discretionary powers fairly and without bias as well as the Labour Act, 2003 (Act 651), which promotes equal opportunity and fair treatment in employment and public service,”

Developers Net is urging Mr. Ayariga to take immediate steps to retract his statement and assure the public that the NYA will operate in a non-partisan manner, and to ensured that the Authority remains committed to policies and programs that provide equal opportunities for all Ghanaian youth.

The organisation also urged President John Dramani Mahama to direct all public officials to refrain from divisive language and actions that could alienate portions of the youth population and to ensure that all youth-related state agencies remain politically neutral and serve all citizens equally.

“The Ghanaian youth deserve institutions that prioritize their welfare, free from political bias and discrimination,” the statement emphasised.

Developers Net reaffirmed its commitment to holding public officials accountable and ensuring that all Ghanaian youth have equal access to opportunities.

“We will continue to push for fairness, inclusivity, and justice in our national policies and institutions,” the group said.

Ghanaian pro golfer Danny List sets high target ahead of new season

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February 27, 2025

Accra, Feb 27, GNA – Danny List, a Ghanaian pro golfer, has expressed readiness to keep his ranking ahead of the forthcoming DP World Tour season.

The 26-year-old golfer is among the top golfers in world and is keen on securing his card which had been one of his greatest achievements since beginning his career at a young age.

Danny List whiles speaking at a presser in Accra said, “As far as I make a successful DP World Tour season, I will be maintaining my card for next year and staying on the tour with some good results.”

He revealed that keeping his badge as part of the world’s top ranked golfers would be a milestone worth celebrating.

The youngster, who is regarded by many as West Africa’s number one recalled some challenging moments in his journey where he had to fight back on top after picking up an injury.

He said despite these challenges, he still aims to be a world champion, winning major championships as well as growing the sport in Africa.

“Golf requires a lot of experience, and I am very pleased with where I am at this point and I feel like I have a long way to go”, he said.

He urged the government to invest in golf which was gradually being accepted by many Ghanaians.

List, through his foundation looks to empower the youth and golf enthusiasts in Ghana and West Africa by providing a world class avenue to learn, practice and excel.

Unlike his predecessors, List’s story is one of global roots, perseverance, and a relentless passion for the game.

In Ghana his success is celebrated by his community and the over 40 junior golfers supported by his foundation.

Understanding the challenges of golf accessibility, the professional golfer is committed to providing equipment, resources, and inspiration for the next generation.

Ketu North MP to hold maiden scholarship award ceremony

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February 27, 2025