Cedi’s strong performance cuts Ghana’s debt by GH₵150 billion – Mahama

President John Dramani Mahama has said that the recent rise in the value of the Ghanaian cedi has helped cut the country’s debt by almost GH₵150 billion. He made this announcement at the African Development Bank’s 60th Annual Meeting and the African Development Fund’s 51st Meeting in Abidjan.

“If that trajectory continues, the target of reaching 55 to 58 per cent debt sustainability by 2028 will be reached by the end of this year, and that means that it gives us fiscal space to begin to invest in the most productive sectors of the economy,” he said.

President Mahama explained that the progress was due to strong financial decisions made by his government over the past five months. These include fiscal and monetary steps aimed at building investor trust, stabilising the economy, and setting a foundation for growth.

JoyNews Research supports this, stating that the cedi’s appreciation of about 18% against the US dollar since January 2025 has eased Ghana’s external debt load. “The current appreciation of the cedi is expected to reduce the external component of Ghana’s debt stock by some GHS74 billion, which could translate into an overall debt reduction of about 10%,” said Isaac Kofi Agyei, Lead Analyst at JoyNews.

This marks a major turnaround from 2022 when the cedi’s fall added GHS93 billion to the national debt. Former Finance Minister Ken Ofori-Atta noted in 2023 that, “our stock of debt increased by GHS93 billion this year alone due to the depreciation of the cedi.”

Several factors have boosted the cedi. Internationally, more countries are moving away from the US dollar in trade, especially within BRICS and some African nations. At home, the Bank of Ghana has taken steps like supplying dollars to oil importers and keeping spending low during this election year.

Ghana’s IMF programme has also been crucial. Its $3 billion support comes with strict rules on spending and reforms, which have increased trust in Ghana’s economic plans. Ghana’s international reserves rose from $6.1 billion in early 2024 to over $9.3 billion by February 2025.

Meanwhile, gold and cocoa exports have surged, helping raise much-needed funds. The Monetary Policy Committee is expected to respond to these positive signs in its meeting tomorrow.