Cedi Rally Slashes Ghana’s Public Debt by GHS 150 Billion
President John Dramani Mahama has said the recent sharp appreciation of the Cedi has reduced the country’s public debt burden by nearly GH₵150 billion, accelerating progress towards its medium-term debt sustainability targets.
Speaking during a presidential panel at the African Development Bank’s (AfDB) 60th Annual Meetings in Abidjan, President Mahama said the government could meet its debt-to-GDP ratio target of 55% to 58% by the end of 2025—three years ahead of schedule—if the currency continues on its current trajectory.
“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,” he said. “That gives us fiscal space to begin investing in the most productive sectors of the economy.”
The Cedi has rallied sharply in recent weeks against major trading currencies, particularly the US dollar, reversing years of depreciation. Analysts attribute the recovery to improved foreign exchange inflows, tighter fiscal controls, and increased export receipts.
President Mahama credited his administration’s fiscal and monetary policy mix for the turnaround, describing recent decisions as “bold” but necessary to restore macroeconomic stability and rebuild investor confidence.
The improvement in the Cedi’s performance comes at a critical time for Ghana, which is navigating a debt restructuring process under an International Monetary Fund (IMF)-supported programme. Ghana’s public debt stood at GH₵658.6 billion at the end of 2024, representing 72.5% of GDP, according to central bank data.
The AfDB Annual Meetings bring together African leaders, policymakers, and development financiers to discuss economic challenges and strategies for inclusive growth on the continent.
