Ghana’s debt situation is spiraling out of control, with Finance Minister Dr. Cassiel Ato Baah Forson’s borrowing spree projected to hit a staggering GHS200 billion by the end of 2025. This warning comes from Dr. Gideon Boako, Deputy Ranking Member of Parliament’s Finance Committee, who contends that the John Mahama-led administration’s excessive reliance on domestic borrowing is unsustainable.
According to Dr. Boako, the government has already accumulated an alarming level of new domestic debt in just two months, with GHS73 billion borrowed from the market. This trend, if left unchecked, will place a heavy burden on future governments. “If Akufo-Addo has in eight years left you GHS153 billion as interest payments on the domestic market to pay, and in just two months, you have borrowed GHS73 billion from the market, then we have a serious problem,” Dr. Boako stressed.
The Finance Minister’s plans to borrow an additional GHS6 billion from the domestic market tomorrow will push the total to nearly GHS80 billion in just two months. This rapid pace of borrowing has sparked concerns about Ghana’s ability to achieve the Sustainable Development Goals (SDGs) by 2030, as the country’s debt situation will severely impact its ability to mobilize development finance.
Dr. Boako cautioned that Ghana’s debt crisis will have far-reaching consequences if left unaddressed. “So you can see clearly that we have a problem as a country, and we need to address this issue. It cannot be addressed by the approach this government is taking. Otherwise, by the time they finish this year, I can tell you Ato Forson will end this year with domestic borrowing above GHS200 billion. We are in for serious trouble.”
Ruth Abla ADJORLOLO
