Ghana must reduce reliance on foreign loans and adopt sustainable financing, warns the EIU’s Africa Economic Outlook 2025. With high external debt servicing costs, the country must enhance domestic revenue and attract investment. Leveraging public-private partnerships and policy reforms can drive long-term economic growth amid global uncertainties.
Ghana has been urged to shift away from its dependence on foreign loans and adopt alternative financing strategies to safeguard economic stability, according to the Economist Intelligence Unit’s (EIU) Africa Economic Outlook 2025.
The report highlights that while the worst of Africa’s sovereign debt crisis appears to have passed, external debt servicing remains a significant burden for many nations, including Ghana. The country must enhance domestic revenue generation to counterbalance its financial obligations and reduce vulnerability to external shocks.
The EIU underscores that nearly half of African countries remain under International Monetary Fund (IMF) programs in 2025, reinforcing the urgency for disciplined fiscal policies and sustainable financing mechanisms.
For Ghana, high external debt servicing costs continue to strain the national budget. The report emphasizes the need for innovative internal financing solutions to avoid the cyclical trap of excessive borrowing. Economic analysts advocate for a strategic shift towards long-term economic sustainability rather than short-term debt accumulation.
Despite these challenges, Ghana stands at a pivotal moment to capitalize on emerging economic opportunities. The EIU projects that Africa will host some of the world’s fastest-growing economies in 2025, with heightened investments in renewable energy, information and communication technology (ICT), and logistics.
Ghana can position itself as a regional investment hub by aligning infrastructure development with national growth priorities. Attracting foreign direct investment (FDI) remains a challenge for many African economies, but a favorable investment climate could help Ghana secure a larger share of global capital inflows.
The report also warns that global geopolitical uncertainties, regional rivalries, and social disruptions could hinder economic stability. As competition intensifies across Africa, Ghana must navigate these complexities by implementing policies that promote sustainable infrastructure financing and economic resilience.
“With economic performance varying significantly across the continent and global geopolitics creating a challenging backdrop, Ghana must ensure its policies foster long-term stability and infrastructure growth,” the report states.
Experts suggest that Ghana can mitigate debt risks by leveraging public-private partnerships (PPPs), pension funds, and targeted policy reforms. A well-coordinated approach to infrastructure financing could reduce reliance on external borrowing and enhance economic sustainability.
The EIU predicts that foreign investment in Africa will increase in 2025, presenting Ghana with a critical opportunity to attract both domestic and international investors. Creating a competitive and investor-friendly environment will be essential to securing economic progress while maintaining fiscal discipline.
While Ghana faces economic hurdles, the country has the potential to redefine its approach to infrastructure financing. By prioritizing sustainable funding mechanisms and reducing dependence on foreign loans, Ghana can strengthen its economic foundation and position itself for long-term growth in an evolving global landscape.
