Ghana ‘s Debt Under Akufo-Addo-Bawumia`s Government

Ghana ‘s Debt Dilemma: MP Exposes Akufo-Addo’s Soaring External Debts and Unusual Eurobond Maturity Dates.

In a candid revelation on the floor of parliament during the debate on the 2024 Budget and Financial Statement, Kweku Ricketts-Hagan, the Member of Parliament for Cape Coast South, painted a stark picture of Ghana’s escalating external debts under the Nana Addo Dankwa Akufo-Addo government. Dismissing claims of the economy turning a positive corner, Ricketts-Hagan laughed off such assertions, contending that the government has steered the nation into a debt quagmire that will linger for years.

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Highlighting the grim fiscal scenario, Ricketts-Hagan disclosed that the Akufo-Addo government has defaulted on payments to Ghana’s external creditors, accumulating substantial debts across various channels. The detailed breakdown of the debts owed by the government includes:

1. Paris Club – $2 billion
2. Chinese government – $1.9 billion
3. Non-Paris Club members – $3.8 billion
4. Chapmenten – $2.5 billion
5. IMF – $8.8 billion
6. Eurobond market – $14.9 billion
7. Multilateral debts – $8.8 billion (reportedly the highest in Africa)

Ricketts-Hagan accused the government of not only accumulating debts but also of borrowing with apparent disregard for repayment. He underscored the unprecedented nature of the situation by highlighting that the Akufo-Addo government, in the history of Ghana’s Fourth Republic, has secured 11 Eurobonds, a stark contrast to the four Eurobonds acquired by four previous governments over 16 years.

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Furthermore, the MP raised concerns about the Akufo-Addo government’s borrowing strategy, emphasizing the unusually extended maturity periods of the Eurobonds. Specifically, he outlined the maturity periods of four Eurobonds signed by the Akufo-Addo administration:

1. May 2018 Eurobond – 30-year maturity period, expiring in 2048
2. 2019 Eurobond – 31 years maturity period
3. 2020 Eurobond – 41 years maturity period, maturing in 2061
4. March 2021 Eurobond – 20 years maturity period, expiring in 2041

Ricketts-Hagan’s revelations highlight growing concerns about Ghana’s economic trajectory and the long-term implications of its mounting external debts under the current administration.

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