Accra: Ghana is adopting a cautious approach towards borrowing from international capital markets, President John Dramani Mahama stated during a recent media encounter. He emphasized the country's commitment to managing its finances prudently rather than hastening to secure external loans for development.
According to Ghana News Agency, President Mahama highlighted the country's recent macroeconomic improvements achieved without external borrowing. He noted that these developments demonstrate Ghana's potential to strengthen its economy through strategic investments and fiscal discipline. The President remarked on the unexpected resilience of Ghana's economy, which has managed to operate without relying on international borrowing, a feat that seemed improbable years ago.
In 2022, Ghana was excluded from international capital markets due to escalating debt levels, stagnant economic growth, and a fragile balance of payments. This situation led the nation to secure a US$3 billion loan facility from the International Monetary Fund (IMF). However, since implementing the IMF program, Ghana has witnessed notable economic recovery over the past eight months, despite some setbacks during the December 2024 national elections.
The Ghana Statistical Service reported a 6.3 per cent growth in the economy during the second quarter of 2025, driven by a significant 9.9 per cent expansion in the Services sector. Inflation rates also showed improvement, declining to 11.5 per cent year on year in August from 12.1 per cent in July, marking the lowest rate in nearly four years and continuing an eight-month trend of decreasing inflation.
President Mahama credited the economic recovery to prudent, people-centric management, which involved eliminating unnecessary taxes, stabilizing the exchange rate, and reducing business costs. He stressed the importance of reallocating expenditures toward priority areas and avoiding wasteful political spending, which has already started yielding positive market results.
Ghana has progressed from a negative 3.4 per cent on the primary balance to a positive 1.1 per cent, with expectations to exceed the 1.5 per cent target by the end of 2025. President Mahama urged the country to consolidate these macroeconomic gains before considering external financing options. He expressed a vision to "reset Ghana, restore the soul of our nation, revive its economy, and reignite the spirit of hope and possibility in every Ghanaian."
