Ghana adds GH¢182.5b to public debt in one year

Within one year Ghana has added GH¢182.5 billion to its public debt, a situation that has largely crippled the economy, forcing the country to restructure it’s debts.

Two years ago in 2022, President Akufo-Addo said the government will implement measures to reduce Ghana’s public debt to Gross Domestic Product (GDP) to 55% by 2028. It’s not clear how those measures are being effective.

He said the six-year targeted measure is to ensure that the country restores and keeps its debt sustainable.

At that time, data by the Bank of Ghana (BoG) showed that Ghana’s debt, which was GH¢291 billion (76 per cent of GDP) in 2020, and GH¢351.8 billion (80.1 per cent of GDP) by the end of 2021, has increased to GH¢402.4 billion as of August 2022.

Recently published data by the Bank of Ghana, shows that the country’s public debt has been ballooning, exceeding 75 per cent of GDP.

Within the last year, the public debt has increased from GH¢578.7 billion in July 2023 to GH¢761.2 billion in July 2024 at this rate public debt would hit a trillion cedis within two years.

The external debt stands at GH¢470.3 billion while domestic debt is GH¢290.9 billion.

By Emmanuel K Dogbevi

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