Ghana’s Finance Minister reports significant external debt service of $8.7 billion over four years, with major payments due in 2027 and 2028. The country lacks buffers to mitigate this burden and is recovering from an economic crisis exacerbated by various global factors. President Mahama seeks to stimulate the economy amid these challenges.
Ghana’s Finance Minister Cassiel Ato Baah Forson announced that the country will encounter substantial external debt service payments over the next four years during his recent budget speech to parliament. The total amount to be paid is projected at $8.7 billion, which constitutes 10.9% of the nation’s GDP, predominantly concentrated in 2027 and 2028.
Specifically, Ghana is expected to pay $2.5 billion in 2027 and $2.4 billion in 2028. Forson highlighted the lack of financial buffers to alleviate this significant debt burden, stressing that the country faces unprecedented domestic and external debt service obligations without any precautionary measures in place.
The government is trying to recover from a major economic crisis worsened by the COVID-19 pandemic, the Ukraine war, rising global interest rates, and history of extensive borrowing. President John Dramani Mahama aims to revitalize the economy and generate employment amidst challenges like a cost-of-living crisis and ongoing IMF bailout measures.
Ghana is grappling with significant external debt service obligations totaling $8.7 billion over the next four years. With a critical focus on the years 2027 and 2028, the country must manage substantial payments amid a challenging economic landscape. The administration, under President Mahama, aims to navigate through these fiscal responsibilities while addressing broader economic recovery efforts.
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