Ghana must stop excessive reliance on foreign loans – EIU report

The Economist Intelligence Unit’s Africa Economic Outlook 2025 advises Ghana to reduce its reliance on foreign loans by finding alternative funding solutions, as external debt servicing burdens strain national budgets.

Although sovereign debt pressures may have eased, many African countries, including Ghana, continue to face macroeconomic challenges under IMF programs. The report underscores the need to improve domestic revenue collection and develop sustainable infrastructure financing instead of accumulating debt.

It highlights growth opportunities in sectors like renewable energy, ICT, and logistics, urging Ghana to align investments with national development priorities.

To attract more foreign investment, Ghana must create an appealing investment climate and adopt long-term financing strategies involving pension funds, public-private partnerships, and policy reforms. Without these changes, Ghana risks long-term economic instability.