As the year draws to a close and markets brim with shoppers, Ghana’s festive season appears to offer a burst of prosperity. Streets from Makola to Kaneshie teeming with activity, mobile money alerts ping relentlessly, and traders talk of a December sales rush that can define their annual revenues. Yet beneath the energy and visible spending lies an emerging economic reality that could leave many households and small businesses grappling with debt long into the new year.
For many Ghanaians, December represents a rare opportunity to meet family obligations, host guests, buy gifts, and settle remaining bills. Mobile money transactions surge during the festive period, reflecting both legitimate economic activity and short-term credit behaviours. In December 2024, mobile money transaction values reached a record GH¢334.8 billion nationwide, underscoring the intensity of digital spending during the season.
However, financial experts and analysts warn that this seasonal surge masks a mounting debt problem. Across living rooms and dinner tables, conversations about “December money” often end in “January tears.” Patrick Baah Abankwa, a financial literacy coach based in Accra, says the pattern is now deeply ingrained in the public psyche. Speaking to The High Street Journal, Abankwa noted that the festive mood encourages people to overspend their means and postpone financial accountability.
One key contributor to the problem is the rapid expansion of short-term credit facilities. Banks and fintech companies are aggressively promoting digital credit and buy now pay later products. Access Bank Ghana, for example, relaunched its Pick Now Pay Later service with zero interest for the first six months, offering consumers immediate purchasing power for household items and electronics.
While zero interest may appear attractive, credit counsellors caution that these products can stretch budgets beyond sustainable limits. Unlike traditional loans with structured repayment plans, buy now pay later agreements often require repayment in the early months of the new year, just when household incomes shrink after festive bonuses and gifts have been spent.
Experts also point to the growing use of unregulated mobile loan applications. Many of these platforms operate outside formal banking oversight, charging high fees and offering little protection to borrowers. A financial advisory report highlighted that some operators fall into legal grey areas, lacking transparent terms, adequate consumer safeguards, and clear avenues for dispute resolution.
This blend of formal and informal credit is reshaping personal finances. For traders like Esther Awoyaa in Kantamanto Market, the festive season is a double-edged sword. “We see customers with money in their wallets and phones,” she said, “but most of that money comes with strings attached, whether it is a loan or staggered payment. By January, people struggle, and sales slow down because everyone is trying to recover financially.” Traders like Awoyaa report that while foot traffic increases, the actual spending power of shoppers is constrained by pre-existing financial obligations and repayment pressures.
Beyond individual households, economists warn that the seasonal debt trend has broader implications for Ghana’s economy. Although Ghana’s overall public debt saw declines earlier in 2025, the rise in consumer debt could offset improvements in macroeconomic data if defaults increase and financial stress spreads.
With inflation cooling slightly and real household spending expected to grow in 2025, according to Fitch Solutions, consumer confidence remains fragile and heavily influenced by post-festive financial strain. Financial advisors are urging Ghanaians to adopt disciplined budgeting practices, avoid stacking credit products, and prioritise essential expenses over discretionary festive purchases.
As January approaches, the celebratory mood for many will inevitably transition to calculation and restraint. What feels like a season of abundance can easily become a period of financial stress. For Ghana, the challenge remains not just to enjoy December’s economic activity but to manage its consequences in the months that follow.
