Economist paints positive outlook for Ghana’s economy following conclusion of debt restructuring
Dr. Theo Acheampong, an economist and political risk analyst, has forecasted a positive trajectory for Ghana’s economy following the conclusion of its debt restructuring programme.
Dr Acheampong, speaking on the current economic climate, indicated that key indicators point towards a resurgence in the nation’s ability to attract investment, a sector where Ghana had previously faltered.
“We observed a 4% quarter-on-quarter growth in real terms, as reported by the statistical service. Additionally, the IMF’s recent announcement of the successful completion of their second review is promising, and we’ve secured agreements with independent power producers to restructure their debts,” Dr Acheampong noted in an interview.
He emphasized that these developments could unlock significant financial resources for Ghana through interest and principal write-offs, deferred repayments, and increased multinational financing.
This optimistic outlook follows the announcement by Finance Minister Dr. Mohammed Amin Adam, who confirmed the successful restructuring of Ghana’s debt with official creditors. The government has restructured $5.1 billion in debt and concluded negotiations on $13.1 billion in Eurobond obligations, resulting in considerable fiscal savings.
“Two weeks ago, we finalized negotiations with official creditors, restructuring $5.1 billion in debt and achieving savings of $2 billion. Tomorrow, we will announce the successful conclusion of negotiations with Eurobond holders on $13.1 billion, securing an $8 billion deal for Ghana,” Dr. Adam stated.
He underscored the government’s adeptness in negotiations and highlighted the administration’s compassionate approach towards those affected by investment decisions. The government plans to release an additional ¢1.5 billion to support impacted individuals, reaffirming its commitment to the welfare of its citizens.
Despite these positive strides, Ghana faces the formidable task of reducing its debt-to-GDP ratio to 55% by 2028, down from a projected 109% prior to restructuring.
Dr Acheampong, while acknowledging the encouraging indicators, urged caution regarding the Finance Minister’s optimistic timeline, suggesting that the tangible effects of these measures might take longer to materialize.
“I’m a little bit skeptical in terms of the bullish sentiment that the Finance minister expresses, but definitely the indicators have begun to turn in the right direction,” he quipped.
