Ghana is set to pay over GH¢150 billion in domestic debt and $8.7 billion in external debt from 2027 to 2028 due to the restructuring efforts by the Akufo-Addo government, according to Minister Dr. Cassiel Ato Forson. The domestic obligations represent 11.6% of GDP and pose substantial risks to the economy, particularly in those fiscal years. Despite these challenges, the administration remains committed to transforming the economy.
Dr. Cassiel Ato Forson, the Minister of Finance, provided an overview of Ghana’s debt obligations for the next four years during the presentation of the 2025 Budget and Economic Policy statement. The debt arises from the debt restructuring exercise initiated by the government led by Nana Addo Dankwa Akufo-Addo. Dr. Forson disclosed that Ghana is facing a total domestic debt service obligation exceeding GH¢150 billion between 2027 and 2028 due to the Domestic Debt Exchange Programme (DDEP).
He explained that the upcoming debt payments represent 11.6% of the country’s GDP, highlighting a significant burden with 73.3% of these payments due in 2027 (GH¢57.6 billion) and 2028 (GH¢52.5 billion). The Minister described these financial responsibilities as “cancerous” and a considerable risk to the economy but assured Ghanaians of the government’s commitment to address these issues.
In addition to domestic obligations, Ghana is also responsible for over $8.7 billion in external debt resulting from the restructuring measures taken by the Akufo-Addo administration. These external obligations represent 10.9% of GDP, with 55% of this debt service due in 2027 (US$2.5 billion) and 2028 (US$2.4 billion). The Minister stressed that these two years will be particularly challenging for the country’s financial landscape.
Dr. Forson vowed that the Mahama government would respond effectively to these challenges and endeavor to transform Ghana’s economy in light of these significant debt obligations. He referenced the DDEP announced by former Minister of Finance Ken Ofori-Atta, aimed at enhancing the government’s ability to manage debt sustainably, with measures enacted in December 2022 to facilitate participation in the debt exchange program.
In summary, Ghana faces substantial debt obligations of GH¢150 billion domestically and $8.7 billion externally over the next four years as a result of the debt restructuring efforts initiated by the Akufo-Addo administration. The Minister of Finance has characterized the situation as a major risk to the economy, especially during the pivotal years of 2027 and 2028, while expressing optimism that the government will address these challenges effectively.
Original Source: www.ghanaweb.com
