Ghana will begin settling billions in cedi-denominated arrears owed to road contractors by end-July, President John Mahama confirmed to the Council of State on July 7.
While critical to restarting stalled infrastructure projects, the payments risk fueling dollar demand and undermining the cedi’s recent stability.
Roads Minister Governs Kwame Agbodza had earlier disclosed GHS 21.2 billion in certified arrears for completed works, with the Ghana Chamber of Construction noting an additional GHS 105 billion in unexecuted contract liabilities.
Mahama acknowledged the move could pressure the currency but cited recent $727 million IMF/World Bank inflows and gold export reforms as buffers. Gold revenues have “more than doubled,” boosting forex reserves to six months of import cover.
Market analysts caution that injecting cedis without matching forex inflows may reverse the currency’s gains. The cedi’s relative strength since early 2025 stems from tight monetary policy, gold trade oversight, and the new Gold Board curbing illicit exports.
The mid-year budget review, expected this month, will detail how the Mahama administration balances infrastructure revival with exchange rate protection. Mahama conceded economic governance “tempo” has intensified, with six months feeling “like two years.”
