President John Dramani Mahama has credited the recent appreciation of the Ghanaian cedi with significantly reducing the country’s total debt burden by nearly GH₵150 billion, describing the development as a major step toward restoring fiscal health.
Speaking at a high-level presidential session during the 60th Annual Meeting of the African Development Bank (AfDB) and the 51st Annual Meeting of the African Development Fund (ADF) today (May 27, 2025) in Abidjan, President Mahama said the rebound of the cedi was central to reversing the rising cost of the country’s public debt, most of which is denominated in foreign currencies.
“One of the push factors for the debt is the strength of the local currency,” he explained. “Our debt continued to multiply because the cedi kept weakening, and so we needed more cedis to service foreign-denominated debt. Fortunately, the measures we have put in place are beginning to show results, and the cedi has been strengthening. We’ve reduced our total debt over the last five months by almost GH₵150 billion, which is very significant.”
President Mahama noted that Ghana is now on course to meet its medium-term debt sustainability targets far earlier than projected.
He indicated that, should the current momentum continue, the government could achieve a debt-to-GDP ratio of 55 to 58 percent—initially targeted for 2028—by the end of this year.
The President attributed the cedi’s turnaround to what he described as “bold and necessary” fiscal and monetary interventions introduced over the past five months. These, he said, have helped stabilise the economy, restore investor confidence, and create room for strategic investments in productive sectors.
He emphasised that while the currency’s recovery has offered some relief, the broader focus of his administration remains on implementing long-term reforms aimed at building resilience.
“We need to look inward, boost domestic revenue, cut wasteful government expenditure, fight corruption, and introduce better accountability in governance,” he stressed.
The AfDB Annual Meetings provide a platform for African leaders and policymakers to collaborate with development partners and financial institutions on strategies for sustainable growth and economic transformation across the continent. Mahama’s remarks were closely watched as Ghana continues its path toward recovery under his renewed leadership.
Source: Graphic Online
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