Deloitte Ghana cautions govt against return to capital market
Deloitte Ghana has cautioned the government against its plan to return to the capital markets, although borne out of the improved macroeconomic environment and the resultant upgrades by the international credit rating agencies.
According to the professional services firm, the government must take recycling lessons from historical mistakes to avoid a repeat of the debt hangover experienced over the last three years.
“Reliance on foreign debts must be moderated, with inflows strictly channeled into strategic capital investments that can adequately support repayment of such loans”, it said in its assessment of the 2025 Mid-Year Review Budget.
As of the end of June 2025, Ghana’s total public debt reduced by GH¢113.7 billion, representing a 15.6 per cent reduction from GH¢726.7 billion at the end of December 2024 to GH¢613 billion in June 2025.
This was mainly on the account of the appreciation of the Ghana cedi.
During the same period, the gross public debt as a percentage of Gross Domestic Product (GDP) stood at 70.6 per cent in June 2024 as compared to 43.8 per cent as of June 2025.
This was primarily due to the government’s finalisation of its debt restructuring programme and the positive impact of the appreciation of the Ghana cedi on external debt stock, indicating a significant improvement in debt levels.
Deloitte said the significant decline in the debt-to-GDP ratio (from 78.5 per cent as of December 2021 to 43.8 per cent as of June 2025), reflected an improvement in debt sustainability and major progress towards the medium-term target debt-to-GDP ratio of 55 per cent by 2028, as agreed with the International Monetary Fund.
It added that the improvement in debt sustainability was expected to induce improved ratings from other international credit rating agencies such as S&P and Moody’s, which, in turn, would drive up investor confidence in Ghana’s economy.
BY TIMES REPORTER
