Mahama: Cedi gains have slashed Ghana’s debt by nearly GHS150bn

President John Dramani Mahama announced that the Ghanaian cedi has strengthened recently. This improvement has significantly reduced the country's total debt burden.

Ghana has cut its debt by nearly GHS150 billion in five months. The rebound of the cedi against major foreign currencies contributed to this reduction.

Speaking at the Annual Meetings in Abidjan on May 27, Mahama highlighted past fluctuations in the cedi's value. He noted that these fluctuations have historically increased Ghana’s public debt.

Mahama explained that a weaker cedi meant higher debt costs. The government had to convert more local currency to pay debts in dollars and other foreign currencies. This led to an increase in total debt stock.

He credited recent policy measures for stabilizing the economy. The current strengthening of the cedi is providing significant fiscal relief. "Some measures we put in place have begun to show results," he stated.

Mahama expressed optimism about continuing this positive trend. If it persists, Ghana could meet its debt sustainability target ahead of schedule. He believes reaching 55% to 58% debt sustainability by 2028 could happen by the end of this year.

This would create fiscal space for investment in productive sectors of the economy.