Ghana’s 2025 budget has been described as a necessary fiscal intervention to manage rising external debt, with Presidential Advisor on the Economy, Seth Terkper, emphasizing the need for alternative debt solutions to prevent a potential default between 2026 and 2028.
Speaking at a farewell ceremony for Simon Madjie, the former Executive Secretary of the American Chamber of Commerce-Ghana, and now current CEO of Ghana Investment Promotion Centre, Terkper defended the government’s tough austerity measures, stating that fiscal discipline is critical as Ghana navigates a delicate economic recovery.
“We’ve just cleared the first suspended budget, but three more major ones lie ahead. The years 2026, 2027, and 2028 will be crucial. We must either pay down or refinance the debt to avoid a rare third default,” he warned.
Ghana’s external debt burden remains a pressing concern, with Finance Minister Dr. Cassiel Ato Forson revealing that the country is expected to service $8.7 billion in external debt over the next four years, amounting to 10.9% of GDP. The heaviest payments are projected for 2027 and 2028, adding urgency to fiscal stabilization efforts.
Despite concerns over debt sustainability, Ghana Investment Promotion Centre (GIPC) CEO Simon Madjie remains optimistic about Ghana’s business environment. He reaffirmed the government’s commitment to attracting local and foreign investments, aligning policies with AfCFTA’s trade framework, and boosting priority sectors.
“Our country is open for business. The government is working on reforms to enhance investment in agribusiness, manufacturing, pharmaceuticals, and the 24-hour economy as promised by President John Mahama,” Madjie stated.
As Ghana implements austerity-driven fiscal policies, the success of the 2025 budget will depend on debt restructuring efforts, investor confidence, and economic resilience in the coming years.
