Finance minister, Dr Cassiel Ato Forson
Besides Zambia, Chad, and Ethiopia, which have already defaulted on their debt, Ghana is the latest country to face this predicament.
Speaking at the 5th edition of the Afrodad Media Initiative ongoing in Johannesburg, South Africa, the Executive Director of the African Forum and Network on Debt and Development (AFRODAD), Jason Rosario Braganza, stated that some countries are paying more in debt service interest repayments than on investments in public services.
He said, “Indeed, four countries have already defaulted on their debt: these are Zambia, Chad, Ethiopia, and, more recently, Ghana. Close to half of the continent’s countries are paying more in debt service interest repayments than on investments in public services such as education, health, water, and sanitation.”
According to him, the lack of accessible debt statistics and public reporting is undermining the public’s ability to interact and hold governments accountable.
Braganza said the training initiative aims to enhance the media’s capacity and promote factual, effective, and consistent reporting on debt and development issues.
It would be recalled that the Akufo-Addo-led government defaulted on its domestic and external debt in December 2022 and subsequently launched the Domestic Debt Exchange Programme to restructure domestic credit.
As it stands now, Ghana is expected to pay approximately GH¢150.3 billion in debt service by 2028.
The debt service obligation for this financial year is also substantial, with significant payments due in February (GH¢9.9 billion), July (GH¢6.2 billion), and August (GH¢10.1 billion).
Meanwhile, the Minister of Finance, Dr. Cassiel Ato Forson, during the 2025 budget presentation, said measures have been put in place to restore fiscal responsibility through enhanced public financial management.
He added that the government is committed to cutting expenditures to reduce the country’s fiscal deficit and public debt.
About AFROMEDI
AFROMEDI V is organized by AFRODAD in partnership with African Monitor.
This year, 45 journalists from 29 countries are participating, with expectations that future editions will expand to all 54 African nations.
The training, which began on Tuesday, March 25, will end on Thursday, March 27, 2025.
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