Since April 2025, the Bank of Ghana has undertaken sustained interventions in the secondary foreign exchange market to stabilize and strengthen the domestic currency. Consequently, the exchange rate, which stood at approximately GHS 14.90 to US$1 in early April 2025, appreciated significantly to about GHS 10.30 to US$1 by June 2025.
This sharp appreciation resulted in a notable decline in the cedi-denominated value of public debt. However, when evaluated in US dollar terms, the rate of public debt accumulation remains substantial and raises important fiscal concerns. Drawing on data from the Bank of Ghana, the trend in Ghana’s public debt in US dollar terms is as follows:
1. The Jerry John Rawlings administration left public debt at approximately $7.1 billion in 2000.
2. Under John Agyekum Kufuor, the debt stock increased marginally—by less than $1 billion—to about $8 billion by 2008, partly reflecting the effects of the Heavily Indebted Poor Countries Initiative.
3. The John Evans Atta Mills / John Dramani Mahama administration increased the debt by approximately $21 billion, reaching $29.20 billion by December 2016.
4. The Nana Addo Dankwa Akufo-Addo administration added about $20.18 billion, bringing the total public debt to approximately $49.38 billion (at the end of December 2024).
5. The current administration under John Dramani Mahama has, within 12 months, added approximately $11.93 billion, increasing the public debt to about $61.31 billion as of December 2025.
6. Over the Fourth Republic, the Mills/Mahama administration has recorded the largest cumulative addition to public debt. Current trends suggest that the present administration may exceed its previous record, raising concerns about fiscal sustainability and setting a potentially troubling precedent.
