Ghana’s debt repayment low despite rising borrowing – Report

A new report by Old Mutual highlights a concerning rise in borrowing among Ghanaians while debt repayment rates remain low. The report attributes the increase to rising living costs, business expenses, and financial pressures, with loans from banks, micro-lenders, mobile money platforms, and family and friends.

Speaking at the Old Mutual Financial Service Monitoring Debriefing Meeting, Vuyokazi Mabude, Group Head of Knowledge and Insights, noted that only 6% of household income is allocated to debt repayment, ranking it a low financial priority. Despite this, 55% of borrowers are stressed about their debt levels.

The report warns that financial instability could worsen without improved debt management behaviors, emphasizing the need for greater awareness and commitment to repayment.