Presidential Advisor on the Economy, Seth Terkper, has defended the government’s 2025 budget, describing it as a necessary step to implement austerity measures aimed at managing Ghana’s external debt.
Speaking at a farewell ceremony honoring Simon Madjie, the former Executive Secretary of the American Chamber of Commerce-Ghana and now CEO of the Ghana Investment Promotion Centre (GIPC), Terkper outlined the evolution of Ghana’s debt portfolio and stressed the importance of finding alternative solutions to avoid defaulting on external debt payments between 2026 and 2028.
“As we speak, we’ve just cleared the first and suspended budget, and three more major ones are ahead. For instance, one of them is an outlier, but the years 2026, 2027, and 2028 will be crucial. We must find a solution—whether through paying down the debt or refinancing.
“Otherwise, there is a rare possibility of defaulting for a third time. That’s the reality, and this is the concern driving the tough austerity measures in the current budget,” Terkper stated.
Meanwhile, GIPC CEO Simon Madjie reaffirmed the government’s commitment to supporting both local and foreign businesses in Ghana.
“I believe our country is truly open for business. The government is committed to reviewing the GIPC law to reflect the AfCFTA Centre for Investment. There will also be efforts to boost investment in sectors such as agribusiness, manufacturing, pharmaceuticals, and the 24-hour economy, as promised by His Excellency, President John Mahama,” Madjie said.
Additionally, Finance Minister Dr. Cassiel Ato Forson raised concerns over Ghana’s external debt service obligations. Over the next four years, the country is expected to spend a total of US$8.7 billion on debt servicing, equivalent to 10.9% of GDP, with the largest payments due in 2027 and 2028.
Credit: City News.
