Ghana’s debt servicing to hit GHc280b in 4-years – Mahama

President John Dramani Mahama has disclosed that Ghana’s debt servicing will reach a staggering GHS280 billion over the next four years.

This projection was made during his first State of the Nation Address (SONA) of his second term on Thursday, February 27, 2025.

According to President Mahama, the financial sector continues to struggle despite the reportedly spending of GHS29.9 billion on the financial sector cleanup exercise to date.

“The financial sector continues to struggle despite the reportedly spending of GHS29.9 billion on the financial sector cleanup exercise to date,” Mahama stated.

He emphasized that the sector remains in distress, highlighting the persistent financial challenges and heavy debt burden facing the country.

The breakdown of the projected debt servicing shows that GHS150 billion will go towards domestic debt, while GHS130 billion will be for external debt servicing. This significant debt burden raises concerns about the country’s economic stability and the need for urgent action to prevent further deterioration.

To put this into perspective, Ghana spent nearly half of its revenue on debt servicing between 2017 and 2022, according to a 2024 United Nations report. This marks a significant increase from the 2010-2016 period, during which 27% of Ghana’s revenue was used to service debt.