Ghana’s Public Debt Hits GHC742 Billion, 70.6 Per cent of GDP – Finance Minister

Joy ChukwuJuly 23, 20241 Mins read264

Ghana’s Finance Minister, Dr Mohammed Amin Adam, has announced that the country’s public debt has reached GHC742.0 billion, equivalent to 70.6 per cent of GDP.

Adam revealed this during the 2024 Mid-Year Budget review in Parliament on Tuesday, July 23. The debt increased by 22 per cent due to the Cedi’s depreciation and ongoing creditor disbursements.

According to him, as of December 2023, the government’s provisional central and guaranteed debt was GHC608.4 billion, with GHC351.1 billion in external debt and GHC257.2 billion in domestic debt.

“Mr Speaker, the provisional total central government debt as of June 2024 stood at GH¢742.0 billion (US$50.9 billion), equivalent to 70.6 per cent of GDP. This indicates an increase of 22.0 per cent due to the effect of the Cedi depreciation and the continuous disbursements from creditors,” he said.

Adam explained that the debt consists of GHC452.0 billion in external debt and GHC290.0 billion in domestic debt, making up 60.9 per cent and 39.1 per cent of the total debt stock, respectively.

As a percentage of GDP, external debt is 43.0 per cent, and domestic debt is 27.6 per cent, Adam said.

Meanwhile, West Africa Weekly reported that Nigeria’s Debt Management Office announced that the country’s total public debt has risen to N121.67 trillion (about $91.46 billion) as of March 31, 2024. This includes the debts of the Federal Government, state governments, and the Federal Capital Territory. The rise in debt is mainly due to the devaluation of the naira.