Abraham Amaliba, Director of Conflict Resolution for the National Democratic Congress (NDC), has criticized the Akufo-Addo administration for handling the national debt, which reached GH¢742 billion (approximately US$50.9 billion) as of June 2024.
Amaliba contends that excessive government borrowing has led Ghana into a severe fiscal crisis.
Speaking on TV3’s The Big Issue on July 27, Amaliba argued that the only solution to the country’s mounting debt is to vote out the New Patriotic Party (NPP) in the upcoming elections. “The government has brought us into this ditch with excessive borrowing,” Amaliba said. “We are at a point of no return; the only way to address this crisis is to reject this administration at the polls.”
The Finance Minister, Dr Mohammed Amin Adam, reported on July 24 that the national debt represents 70.6% of Ghana’s Gross Domestic Product (GDP). This includes GH¢452 billion in external debt and GH¢290 billion in domestic debt, reflecting a significant increase due to cedi depreciation and ongoing disbursements from creditors.
In response to these concerns, Dr. Adam assured Ghanaians that the government is adhering to its budgetary constraints. He highlighted that the government had exceeded its mid-year revenue target by 0.2% and is on track to achieve a primary surplus of 0.5% of GDP by the end of the year.
Dr. Adam also outlined several fiscal measures and agreements to alleviate the debt burden. These include:
Debt Restructuring: Completing a debt restructuring program with official creditors, resulting in approximately US$2.8 billion in debt relief. The government will not service this portion of the debt from 2023 to 2026.
Eurobond Negotiations: Agreements with Eurobond holders have cancelled US$4.7 billion of debt and provided US$4.4 billion in debt service relief between 2023 and 2026.
Independent Power Producers: Negotiations with Independent Power Producers will save about US$6.6 billion over the life of the power agreements.
State-Owned Enterprises: Significant reforms are being implemented in state-owned enterprises to improve fiscal prudence, particularly in the energy and cocoa sectors.
Despite these efforts, Amaliba remains sceptical of the government’s claims and continues to advocate for a change in leadership to resolve the country’s debt crisis.
