President Nana Addo Dankwa Akufo-Addo has called on former President John Dramani Mahama to work towards reducing Ghana’s debt-to-GDP (Gross Domestic Product) ratio to 55%. This target, as part of the nation's broader fiscal consolidation plan, aims to strengthen the country’s economic position, curb unsustainable borrowing, and improve public financial management.
Akufo-Addo’s statement was made during a political rally, where he underscored the critical importance of managing the nation’s debt prudently. Ghana's debt burden has escalated in recent years, contributing to a high debt-to-GDP ratio that has placed immense strain on the country’s fiscal stability. According to recent reports, the country’s debt-to-GDP ratio has surpassed 70%, a worrying figure that has raised concerns among economic analysts and the general public.
The president acknowledged that the pandemic and other global factors had contributed to the country's increased debt but emphasized that the focus should now be on sustainable debt management strategies. He highlighted that the 55% debt-to-GDP ratio target would help restore investor confidence and attract foreign investment, which is essential for economic recovery and growth.
Akufo-Addo’s call for Mahama to take action reflects the ongoing political debate regarding the best approach to managing Ghana's national debt. While Akufo-Addo's administration has prioritized reducing the debt-to-GDP ratio through various initiatives such as the International Monetary Fund (IMF) bailout package, Mahama's leadership has been criticized for increasing public debt during his tenure as president. As the two political heavyweights prepare for the next general election, this issue has become a significant point of contention.
The debt-to-GDP ratio is a key indicator of a country's economic health, and reducing it is crucial for avoiding a debt crisis. In addition to reducing borrowing, the government’s efforts to enhance domestic revenue mobilization, curb corruption, and improve public sector efficiency will be integral to achieving this goal. Both Akufo-Addo and Mahama's plans for debt management will undoubtedly remain a central theme in Ghana's political discourse as the country strives for a more secure economic future.
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