Stronger cedi helped cut Ghana’s debt by GH¢150bn in five months - President Mahama
President John Dramani Mahama has disclosed that the recent strengthening of the cedi has led to a reduction of Ghana’s public debt by nearly GH¢150 billion within the past five months.
Speaking at the African Development Bank Group Annual Meetings in Abidjan, Côte d’Ivoire, on Tuesday, May 27, 2025, President Mahama attributed the decline in the debt stock to gains made by the local currency and economic measures taken by his administration.
“Our debt multiplied because the cedi weakened, and since much of our public debt is denominated in foreign currencies, a weaker cedi increases the debt burden,” President Mahama said.
“Fortunately, measures we’ve put in place have shown results, and the cedi has been strengthening. Over the last five months, we’ve reduced our total debt by almost GH¢150 billion.”
He stated that Ghana had successfully completed most of its debt restructuring, resolving 97 per cent of the total obligations.
According to him, agreements have already been concluded with bilateral creditors, while talks with commercial creditors, who hold the remaining 3 per cent, are ongoing.
“Our debt-to-GDP ratio has dropped to around 75 or 76 per cent. We are aiming for a range of 55 to 58 per cent by 2028, but if this progress continues, we may reach that target before the end of this year,” he said.
Mr Mahama emphasised the need to avoid adding new debts to the national books, especially for infrastructure projects that can finance themselves.
He said government borrowing must be done carefully, and only in ways that produce enough income to repay the debt.
He pointed to the expansion of the Tema Port and the construction of Terminal 3 at Kotoka International Airport as examples of large projects that were completed without adding to public debt.
“The port expansion was carried out with Meridian Port Services and the Ghana Ports and Harbours Authority. It cost about a billion dollars and is paying for itself,” he said.
“Similarly, Terminal 3 was developed through the Ghana Airports Company Limited and is not part of our public debt.”
Mr Mahama noted that such financing models free up public funds for other areas.
He added that his administration remains focused on improving public finances through revenue mobilisation and better spending controls.
“We must look inward, raise more revenue locally, reduce wasteful spending, tackle corruption, and improve accountability in governance,” he said. “That is the path we are pursuing.”
