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Ted News Ghana Blog of Thursday, 27 February 2025
Source: TEDDY VAVA GAWUGA
Former President John Dramani Mahama has claimed that the Akufo-Addo administration has nearly depleted Ghana’s Sinking Fund, leaving behind only a small fraction of the $290 million he handed over in 2017.
Speaking during the 2025 State of the Nation Address in Parliament, Mahama revealed that the Fund now holds just $64,000 in the dollar account and GHS143 million in the Cedi account.
“Scarce reserves were also left for debt servicing, despite implementing what may be considered the most severe economic policy in our history—the Domestic Debt Exchange Programme (DDEP),” Mahama stated. “This is in stark contrast to our actions in 2017, when we allocated $250 million to the Sinking Fund to help service Ghana’s debt.”
The Sinking Fund, a crucial debt management tool, was designed to ensure timely debt repayment. Economists have long stressed its role in reducing financial pressure, especially given Ghana’s rising debt levels.
Mahama criticized the Akufo-Addo government for halting contributions to the fund after 2017. He reiterated his commitment to restoring and strengthening the fund under provisions of the Petroleum Revenue Management Act, 2011 (Act 815).
Former Finance Minister Seth Terkper has also condemned the depletion of the fund, arguing that it has left Ghana vulnerable and overly reliant on the Stabilization Fund and Bank of Ghana interventions.
