In a significant revelation that signals renewed optimism for Ghana’s economic future, President John Dramani Mahama has disclosed that the recent appreciation of the cedi has led to a drastic reduction in the country’s total public debt, amounting to nearly GHC150 billion in the past five months alone.
Speaking at a high-level presidential panel during the 60th Annual Meeting of the African Development Bank (AfDB) and the 51st Annual Meeting of the African Development Fund (ADF) in Abidjan, Mahama explained that the strengthening of the local currency is accelerating Ghana’s path toward achieving debt sustainability.
“One of the main drivers of our ballooning debt over the years has been the weakening of the cedi,” Mahama noted. “Because much of our public debt is denominated in foreign currencies, a weaker cedi meant we had to spend more in local currency to service the same amount of debt.”
He credited recent economic measures taken under his leadership for the cedi’s current rebound, emphasizing that this trend is making a tangible difference in the country’s fiscal outlook.
“Fortunately, some measures we put in place have begun to show results, and the cedi has been strengthening. As a result, we’ve reduced our total debt by almost GHC150 billion over the last five months, which is very significant,” he said.
The former president projected that if this positive trajectory continues, Ghana could reach its medium-term debt sustainability target between 55% and 58% of GDP by the end of 2025, well ahead of the original 2028 deadline.
Mahama also stressed that a stronger cedi and reduced debt burden would provide Ghana with greater fiscal space to invest in critical sectors of the economy, such as infrastructure, agriculture, and education. However, he was quick to caution that this opportunity must be complemented by sound governance and economic discipline.
“We must look inward. We must boost domestic revenue, cut wasteful government expenditure, fight corruption, and introduce better accountability in governance. That is the focus of my administration,” he concluded.
The remarks have since sparked conversations among economic observers, many of whom are watching closely to see whether the positive outlook can be sustained amid global economic uncertainties and domestic structural challenges.