Cedi gains slash Ghana’s debt by GH₵150 billion – Mahama

President John Dramani Mahama has revealed that recent gains by the Ghanaian Cedi have played a pivotal role in reducing the country’s total debt burden by nearly GH₵150 billion.

Speaking during 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 Mahama said Ghana was on track to achieve its medium-term debt sustainability targets far earlier than expected, should the cedi’s appreciation continue.

“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.

The President attributed this significant progress to key fiscal and monetary interventions undertaken by his administration over the past five months, describing them as bold, necessary steps to restore investor confidence, stabilise the economy, and secure long-term growth.

The Cedi, which had seen sharp depreciation in recent years, has rallied strongly in recent weeks against major foreign currencies, particularly the US dollar, bolstered by improved foreign exchange inflows, macroeconomic discipline, and increased exports.

Also, he encouraged African countries to collaborate and harmonise trade activities to insulate the continent from external pressures imposed through tariffs.

He stressed the need for African countries to improve revenue collections to link up infrastructural development for easy movement of goods and people.

He observed that the lack of integration and harmonisation has left African countries vulnerable to other countries and unions to exploit through tariff imposition.

“Unfortunately the system is being appended and countries have decided to impose tariffs based on their own interest. It sends a signal to Africa that there is no free dinner anywhere”, he said.

Proposing some solutions, President Mahama said there is the need for African countries to mobilise resources from the continent to develop the infrastructural needs needed to connect countries.

“We must mobilize revenue locally. We must add value to our products and we must get a better share for the natural resource endowment that God has given us”.

“We must look inward and see how we can trade more among ourselves. Happily, we have the AfCFTA which majority of African nations have ratified. What it means is that we have the opportunity to trade among ourselves,” he said.

President Mahama applauded the AfDB for investing in the trade infrastructure on the continent.

He pointed out for example that funds made available to countries to build roads and expand ports activities have played important roles for easy movement of goods and people to improve trade in Africa.

“It is not enough to have a protocol on trade. If you don’t have the railways, if you don’t have the highways, if you don’t have the aviation connection to be able to exchange goods, it comes to a knot. We must take advantage of that. In Ghana, we have expanded our ports and it has become a hub for receiving some of the biggest ships”, he said.

The AfDB Annual Meetings bring together African leaders, policymakers, development partners, and financial institutions to discuss strategies for sustainable development and economic transformation on the continent.