Debt restructuring key to Ghana’s economic boost – Analyst
By Rebecca Okine
Economic analyst Emmanuel Boateng has credited Ghana’s debt restructuring as a key driver behind the country’s improved economic outlook, as highlighted in the African Development Bank’s (AfDB) 2025 African Economic Outlook report.
The report reveals that Ghana, along with nine other African nations, experienced economic growth increasing by more than one percentage point from 2023 to 2024.
Speaking on Business Breakfast on Zed on Wednesday, June 4, 2025, Mr. Boateng explained that Ghana restructured $5.4 billion owed to bilateral creditors and over $10 billion in bond debt. He said these measures aimed to restore fiscal credibility and boost investor confidence in the country’s economy.
“It largely has to do with the debt restructuring. The debt restructuring played a major role,” Mr. Boateng said.
He added that this restructuring eased the pressure of immediate debt servicing obligations by extending repayment timelines, which created fiscal space for the government.
“We were in debt, and we restructured to pay the debt at a certain future time, and that gave us space to be able to do something,” the economic analyst explained.
However, Mr. Boateng noted that increased government spending in 2024, largely driven by the election cycle, contributed to a higher fiscal deficit, which affected overall economic performance.
“Every election year, spending is quite high because we spent to finance the election. That spending also led to some level of deficit, and that affected the performance of our economy,” he noted.
He acknowledged other challenges faced during the period, including inflation and currency depreciation, but emphasized the positive impact of debt restructuring in setting Ghana on a path to recovery.
Responding to projections in the AfDB report that Ghana’s inflation will remain high, Mr. Boateng disagreed. He cited recent figures from the Ghana Statistical Service (GSS) showing a steady decline in inflation rates—from 23.5 percent in January to 18.4 percent in May 2025.
“When they say inflation is projected to remain high, I don’t agree, especially when the government has a target and has been working towards it and we have seen the results so far,” Mr. Boateng explained.
He also disputed the report’s prediction that the cedi would continue depreciating, noting that current trends show the currency performing much stronger than it has in years. In fact, the cedi has demonstrated solid stability and improvement over the past five years. As of June 4, 2025, the interbank foreign exchange rate for the cedi stands at GH₵10.22.
Mr. Boateng concluded that the outlook for inflation and currency stability is more optimistic than the AfDB’s projections suggest, due to recent government policies and the effects of the debt restructuring.
