Ghana's Public Debt Surges by GH¢70bn in Three Months

Ghana’s public debt has experienced a significant surge, increasing by over GH₵70 billion in just three months. This rise reflects the considerable pressure on the cedi, which sharply depreciated against the US dollar during the third quarter of 2025.

Data from the Bank of Ghana, tracked by JoyNews Research, reveals that the nation’s public debt climbed to approximately GH₵684.6 billion in the third quarter. Projections indicate that if the cedi continues to struggle against the dollar, the total public debt could exceed GH₵700 billion by the year’s end.

This increase reverses a positive trend seen earlier in the year. Public debt had declined by GH₵15.64 billion between the first and second quarters. However, the cedi’s renewed weakness in Q3 has heavily impacted the debt stock.

The local currency lost around 24% of its value against the US dollar in the third quarter, a stark contrast to the over 40% appreciation it enjoyed in the second quarter.

In the 2025 MidYear Budget, Finance Minister Dr. Cassiel Ato Forson highlighted improvements in Ghana’s debt profile, attributing it to prudent debt management and exchange rate appreciation. He noted a decrease in public debt from GH₵726.7 billion at the end of December 2024 to GH₵613 billion by the end of June 2025.

However, historical data consistently demonstrate that cedi depreciation is a major contributor to Ghana’s rising debt levels. In 2023 alone, currency depreciation accounted for 62.5% of the increase in the total public debt, raising concerns about the country’s vulnerability to foreign exchange risks.

The recent slowdown in foreign exchange interventions by the Bank of Ghana, coupled with increasing import demands, has further exacerbated the cedi’s depreciation. For years, the central bank’s dollar injections have helped stabilize the cedi, indirectly supporting a more favorable debt profile.

This year, the Bank of Ghana has reportedly supplied approximately US$1.0 billion to the foreign exchange market, operating under a foreign exchange intermediation framework instead of direct intervention.

Analysts warn that continued depreciation of the cedi could significantly worsen Ghana’s debt situation if the current pressures persist. The situation requires careful monitoring and potentially, a re-evaluation of debt management strategies.

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