Ghana’s significant drop in public debt is being attributed to improved macroeconomic management, tighter fiscal discipline, and a stronger local currency, rather than to any inherited political legacy. This is according to Joe Jackson, Chief Executive Officer of Dalex Finance.
Speaking on Current Affairs programme, Key Points on TV3, Mr. Jackson said the recent decline in the country’s debt-to-GDP ratio is closely tied to the appreciation of the cedi and the prudent policy decisions taken by the current economic managers.
The 2025 Mid-Year Budget Review by the Ministry of Finance shows that Ghana’s public debt-to-GDP ratio fell from 61.8 percent in December 2024 to 43.8 percent by June 2025. While the Minority in Parliament has argued that the reduction stems from the Eurobond restructuring programme led by the previous administration in October 2024, Jackson believes the results being seen now are the outcome of ongoing sound fiscal and monetary policy.
“The appreciation of the cedi is not accidental. It is the result of fiscal discipline, effective monetary policy, and sound reserve management,” Jackson said. “A stronger cedi means a lower valuation of our external debt, which plays a direct role in reducing our debt levels.”
While acknowledging that earlier debt restructuring efforts created some fiscal space, Jackson emphasized that the current administration’s policies have reinforced market confidence and sustained the momentum. “There is a difference between legacy and active economic stewardship. What we are seeing now is the result of what is being done today,” he stated.
The Minority had earlier insisted that the foundation for the improvement was laid by the Eurobond restructuring programme, which secured five billion dollars in debt cancellation and saved the country 4.7 billion dollars in debt servicing. They also pointed to a Fitch Ratings report in June 2025 that credited Ghana’s rating upgrade to the 2024 restructuring.
However, Jackson stressed that external conditions, including lower global inflation and rising commodity prices, also played a role but noted that without strong internal policy, those gains would not have translated into meaningful progress.
“Whoever takes credit for the appreciation of the cedi should also take credit for the reduction in the debt levels,” he said. “You cannot separate the two.”
Analysts say the improvement in debt sustainability is not just a reflection of debt write-offs but also of the positive impact of exchange rate management and tighter monetary policy. Credit rating agencies and investors have responded favorably, citing improved confidence in Ghana’s economic direction.
