Recent data released by the Bank of Ghana show that Ghana’s total public debt stock rose marginally to GH¢769.4 billion up from GH¢768.1 billion the previous month, representing 55 percent of Gross Domestic Product (GDP).
The modest increase in debt occurred even as the Ghanaian cedi posted one of its strongest performances in recent history, appreciating significantly against major international currencies.
In dollar terms, Ghana’s public debt stood at $49.5 billion as of March 2025, up slightly from $49.4 billion in February.
This ratio suggests that while the nominal value of debt has increased slightly, the country’s debt burden remains relatively moderate by historical standards, particularly in light of Ghana’s recent debt restructuring efforts and improving macroeconomic indicators.
On the external component of the debt stock, the figure rose from GH¢440.1 billion (equivalent to $28.3 billion) to GH¢442.5 billion ($28.5 billion), accounting for 31.6% of GDP.
Conversely, the domestic debt stock saw a minor decline, falling from GH¢328 billion to GH¢326.9 billion, representing 23.4% of GDP.
Analysts attribute this decline to the government’s cautious approach to domestic borrowing, including a tempered appetite for issuing new treasury bills amid falling interest rates and improving investor confidence.
Meanwhile, the cedi’s recent performance has become a key narrative in Ghana’s ongoing economic recovery.
According to the Bank of Ghana’s May 2025 Summary of Economic and Financial Data, the local currency has appreciated by, 24.1% against the US dollar; 16.2% against the British pound and 14.1% against the Euro.
This marks a remarkable turnaround from the depreciation trends seen in previous years.
As of May 22, 2025, the cedi is trading at, GH¢11.85 to the US dollar; GH¢15.84 to the British pound; GH¢13.34 to the Euro.
This resurgence has been attributed to a combination of factors, including improved investor sentiment, declining inflation, robust export performance (particularly in gold and cocoa), and reforms in the foreign exchange market led by the Bank of Ghana.
Additionally, the introduction of innovative currency management strategies such as GoldBod has also helped boost forex reserves and reduce pressure on the local currency.
Despite these gains, Ghana’s public debt remains a source of concern. However, recent trends suggest that the country is gradually transitioning to a more stable fiscal trajectory, driven by improved macroeconomic management and prudent policy choices.
MA
