Former President John Dramani Mahama has revealed that Ghana’s public debt has seen a substantial reduction of nearly GHS150 billion over the past five months, attributing the development to recent gains in the value of the Ghanaian cedi.
Speaking during the Annual Meetings held in Abidjan on Tuesday, May 27, Mahama emphasized that the appreciation of the local currency against major international currencies has provided significant fiscal relief, reversing a long-standing trend of debt escalation driven by currency depreciation.
“For years, the depreciation of the cedi meant we had to convert more local currency to service debts denominated in foreign currencies. This dynamic caused our debt stock to balloon,” Mahama explained.
He said the recent turnaround is the result of deliberate policy interventions that have begun to stabilize the economy and enhance macroeconomic indicators.
“Fortunately, some measures we put in place have recently begun to show results, and the cedi has been strengthening. So we’ve reduced our total debt over the last five months by almost GHS150 billion, which is very significant,” Mahama stated.
Highlighting the broader implications of the cedi’s recovery, Mahama expressed optimism about Ghana reaching its debt sustainability goals much earlier than anticipated.
“If that trajectory continues, the target of reaching 55% to 58% debt sustainability by 2028 will be reached by the end of this year. That means it gives us fiscal space to invest in the most productive sectors of the economy,” he said.
The former president’s remarks signal a renewed confidence in Ghana’s economic path, with a focus on leveraging macroeconomic stability to spur investment and development.
