In a recent panel discussion at the 60th Annual Meeting of the African Development Bank, President John Dramani Mahama disclosed that the recent appreciation of the Ghana Cedi against major trading currencies has had a significant impact on Ghana’s public debt. He revealed that the cedi’s gains against trading currencies have reduced the country’s total public debt by almost GH¢150 billion over the last five months.
President Mahama emphasized the importance of maintaining this trajectory to achieve the target of reaching 55 to 58 percent of debt sustainability by 2028. This, he said, would provide the government with the fiscal space to borrow and invest in the most productive sectors of the economy.
However, the President also highlighted the need for sustainable debt management practices, including improving domestic revenue mobilization, cutting wasteful government expenditure, fighting corruption, and promoting accountability. He stressed the importance of investing borrowed funds into productive sectors of the economy to ensure that they generate income for repayment.
President Mahama pointed to successful examples of smart borrowing, such as the Tema port expansion project and the terminal three of the Kotoka International Airport, which have been able to pay for themselves. He underscored the importance of creating debt escrows to ensure that borrowed funds are used effectively.
As of the first quarter of 2025, Ghana’s total public debt stood at GH¢769.4 billion, representing 55 percent of Gross Domestic Product. President Mahama’s remarks shed light on the country’s efforts to manage its debt effectively and promote sustainable economic growth.
By implementing smart borrowing practices and focusing on productive investments, Ghana can continue to reduce its debt burden and create a path towards a more sustainable and prosperous
Ghanaflare.com
