Audio By Carbonatix
Ghana’s debt-to-Gross Domestic Product (GDP) is expected to narrow slightly below 60% by the end of 2025.
According to the African Development Bank (AfDB) 2025 Economic Outlook, this would be a little lower than the 61.8% recorded in 2024.
The Bank of Ghana reported in its May 2025 Summary of Economic and Financial Data that Ghana’s debt-to-GDP ratio was estimated at 55%. This was, however, higher than the 53.7% and 54.9% recorded in January 2025 and February 2025.
The country’s overall debt was estimated at GH¢769.4 billion, about US$49.5 billion.
Of the continent’s 54 economies, the AfDB said debt ratios are below pre-pandemic levels in 15.
It pointed out that the debt ratios in most of these countries have declined substantially owing to steep consolidation measures aimed at creating additional fiscal space for investment in critical areas of development. For instance, relative to 2023, Angola’s debt-to-GDP ratio fell by about 42.1 percentage points in 2024, the largest decline.
This was followed by São Tomé and Príncipe, at about 40 percentage points.
Risks of Systematic Debt Crisis well Contained
Meanwhile, AfDB said the risk of a systemic debt crisis is contained in Africa, but vulnerabilities
continue to linger. Africa has broadly escaped a systemic debt crisis with the containment of growth in public debt.
However, there are lingering and elevated debt vulnerabilities.
“These risks mainly stem from high global interest rates, at which most of Africa’s commercial debt
was contracted, and exchange rate depreciations, which raise the cost of debt service. Even with the
measures taken to contain public expenditure, the primary deficit remains an important driver of debt, followed by interest payments and low GDP growth.
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