Dr. Mohammed Amin Adam, Ghana’s Finance Minister, has reported that the depreciation of the cedi has caused Ghana’s debt to rise from GH¢608 billion in 2023 to GH¢742 billion in the first half of 2024. This represents a 22% increase in the country’s debt, attributed to the cedi’s decline in value and new loans from creditors. In dollar terms however the debt declined from US$52.7 to US$50.9.
Dr. Amin explained that Ghana’s debt comprises GH¢452 billion in external debt and GH¢290 billion in domestic debt. This breaks down to 60.9% and 39% of the total debt, respectively. In terms of Gross Domestic Product (GDP), external debt accounts for 43%, while domestic debt makes up 27.6%.
Dr. Amin also noted that domestic financing of the debt would reach GH¢38.9 billion, which is 3.8% of the revised GDP and 71.9% of the total financing for 2024. This revision mainly reflects a reduction in interest payments by GH¢7.9 billion, due to adjustments from the external debt restructuring.
Looking ahead, Dr. Amin assured that the government will continue to implement the 2024 Medium Term Debt Strategy (MTDS) from the first half of the year. This strategy aims to find a balanced financing approach to support fiscal consolidation while maintaining macroeconomic stability and debt sustainability.
