"Ghana's Rising Debt Levels: $2 Billion 'Savings' Sparks Concerns Over Economic Impact and Calls for Strategic Investment"
By: Samuel Yeboah - Kyzzfmonline
November 12, 2023

"As of December 2022, Ghana faced economic challenges with a total debt of about $14 billion in commercial loans, bilateral loans, and euro bonds due for payment.

Due to the economic hardship, the government opted to restructure and defer the payment plan for these debts.

Recently, the government announced the accumulation of $2 billion in temporary savings due to the deferred payment plan. However, this statement has raised concerns about its potential negative impact on the country.

In a recent interview on the KYZZ FM morning show with Mr. Abaidoo, a business analyst, he revealed that Ghana's external debt was $7.5 billion ten years ago.

By October 2023, the external debt had surged to $29.4 billion, with the total domestic and external debt stock reaching $53.3 billion.

According to the International Monetary Fund's (IMF) quarterly survey, Ghana currently ranks as Africa's most indebted country.

Mr. Abaidoo argued that the government's claim of saving $2 billion is misleading, as it actually represents an accumulation of more debt, potentially leading to economic complexities.

He expressed concern that businesses are suffering amid debt restructuring, with increased taxes on goods and doubled property rates. Despite expectations of relief for Ghanaians, the positive impact has not materialized.

In light of this, Mr. Abaidoo urged the government to invest $2 billion in agriculture, advocate for proper resource allocation, and protect and reclaim lands for farming. He also emphasized the need to deploy security services to "galamsey" sites to protect water bodies.

He encouraged the government to channel relief efforts into production rather than pushing it into the budget.

Given the current economic data of Ghana, the concerns raised by Mr. Abaidoo underscore the importance of strategic financial decisions to address the country's economic challenges."