The cedi's continuous appreciation is having a positive impact on the government's efforts to settle its colossal debt.

Speaking at a high-level presidential session at the 60th Annual Meeting of the African Development Bank (AfDB) and the 51st Annual Meeting of the African Development Fund (ADF) in Abidjan, President John Dramani Mahama revealed that about GH₵150 billion has been slashed as a result of the local currency appreciating.

"Also, increasingly, one of the push factors for the debt is the value of the local currency; our debts continue to multiply because the cedi continues to grow weaker, and so we need more cedi because our public debt is stated in cedis, the weaker the cedi becomes against the foreign currencies, the higher it pushes up the debt."

"Fortunately, some measures we put in place have recently begun to show results, and the cedi has been strengthening, and so we have reduced our total debt over the last five months by almost 150 billion Ghana cedis," he noted.

Ghana’s total public debt stood at GHC761.0 billion by November 2024, reflecting a month-on-month decrease of GH¢24.1 billion, according to the BoG’s January 2025 Summary of Financial and Economic Data.

President Mahama emphasized that the country will achieve its debt sustainability sooner than stipulated should the local currency continue to gain value against major trading currencies.

According to the President, key fiscal and monetary interventions undertaken by his administration over the past five months are factors influencing the significant progress.

These initiatives, he noted, are necessary steps to restore and stabilise the economy, boost investor confidence, and secure long-term growth.

“If that trajectory continues, the target of reaching 55 to 58 per cent debt sustainability by 2028 will be reached by the end of this year, and that means that it gives us fiscal space to begin to invest in the most productive sectors of the economy," he stated.

In April and May this year, the local currency has appreciated by 19% as per information released by the Bank of Ghana (BoG).

As of Friday, May 26, the average interbank rates used by commercial banks for transactions at the close of business showed the US dollar buying at GH₵10.39 and selling at GH₵10.40.

The British pound is buying at GH₵14.09 and selling at GH₵14.11. The euro is currently being bought at GH₵11.82 and sold at GH₵11.83.

In February this year, Ghana spent GHC6.1 billion on debt servicing by the end of February.

According to the spokesperson for President John Dramani Mahama and Minister for Government Communications, Felix Kwakye Ofosu, Ghana is expected to pay GHC180 billion next year to service its debt.

Ghana is set to conclude bilateral agreements for the restructuring of its $5.1 billion official bilateral debt by June, a goal that Finance Minister Dr. Cassiel Ato Forson has described as “ambitious.”

This follows the signing of a Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC) on January 28.

This information is outlined in the 2025 Budget Statement and Economic Policy, which highlights Ghana’s fiscal strategies, including debt restructuring efforts aimed at stabilizing the economy.

Highlighting the importance of this process, the Finance Minister stated, “We look forward to the support of this august House in achieving this objective within the established timeframe.”

The agreement formalizes the key terms of the restructuring, which were outlined in an Agreement in Principle (AIP) reached on January 12, 2024. It includes an extension of debt service repayments and provides approximately $2.8 billion in debt relief.

Additionally, the MoU establishes a cut-off date of December 31, 2022, and imposes limits on disbursements during Ghana’s IMF-supported program from 2023 to 2026.

The signing of the MoU paves the way for negotiations with individual OCC member countries. As part of the process, Ghana has commenced data reconciliation and validation exercises with several creditors in preparation for the bilateral agreements.

In addition to official bilateral debt restructuring, the government is engaging commercial creditors, including Chinese commercial lenders, plurilateral institutions, and private banks, to restructure approximately $2.7 billion in commercial debt.

Discussions on draft Non-Disclosure Agreements (NDAs) are already underway, with a financial proposal for restructuring expected to be presented soon.