President Nana Addo Dankwa Akufo-Addo has called on the incoming administration, led by John Dramani Mahama, to work toward reducing Ghana's debt-to-GDP ratio to 55% by the end of its tenure.

Delivering his final State of the Nation Address (SONA) in Parliament on Friday, January 3, 2025, President Akufo-Addo highlighted the progress made by his administration in reducing the debt-to-GDP ratio, which had declined from 79.2% in September 2024 to 74.6% in October 2024.

He expressed optimism that achieving a 55% target would solidify Ghana’s commitment to establishing a sustainable economic foundation.

“The public debt-to-GDP ratio, therefore, has reduced from 79.2% in September 2024 to 74.6% in October 2024. This is expected to reduce further to 55% of GDP in net present value terms, a level that restores Ghana’s debt sustainability. It is hoped that the new government will continue with the policies being implemented to achieve this debt sustainability target,” President Akufo-Addo stated.

The President further elaborated on the government’s efforts to manage public debt amidst economic challenges.

“The stock of public and publicly guaranteed debt increased during the economic difficulties. However, the government is servicing its debts, honouring coupon payments for both domestic bonds and Eurobonds. Moreover, the debt levels are reducing, recording a significant reduction in the debt stock by GH¢46.8 billion to GH¢761.01 billion in October 2024 from GH¢807.79 billion in September 2024,” he said.

President Akufo-Addo also announced the government’s readiness to settle coupon payments for Eurobond holders, amounting to $346 million.

“I am happy to inform the House that today, 3rd January 2025, my government will honour coupon payments to our Eurobond holders amounting to $346 million. We cannot afford to default on our debt repayments. That’s the advice I want to give to the incoming finance minister.”

The address marked President Akufo-Addo’s final SONA as mandated by Article 67 of the 1992 Constitution, which requires the outgoing president to provide an update on the state of the nation before leaving office.

This occasion also signified the final session of the 8th Parliament of the 4th Republic, which is set to be dissolved on Monday, January 6, 2025.



EE/MA