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    Home » Ghana’s External Debt Drops Big as Cedi Strengthens
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    Ghana’s External Debt Drops Big as Cedi Strengthens

    Constance AwunorBy Constance AwunorFebruary 26, 2026No Comments2 Mins Read1 Views
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    Ghana’s external debt took a big dip, dropping by GH¢86.7 billion from GH¢416.8 billion in December 2024 to GH¢330.2 billion in November 2025, according to the Bank of Ghana’s Monetary Policy Report. That’s roughly 6% of the country’s GDP! The main reason? The cedi got stronger, which automatically shrank the external debt by GH¢100.8 billion (about 8% of GDP) when converted to local currency.

    On the home front, domestic debt went up a little, from GH¢309.8 billion to GH¢314.5 billion. This was part of a controlled strategy to align domestic financing with the 2025 budget.

    All this added up to a major drop in total public debt. By November 2025, Ghana’s total debt went from 61.8% of GDP in December 2024 down to 45.5%. The pace of debt accumulation flipped too from growing 19.1% in 2024 to shrinking 11.3% by November 2025.

    Looking closer, the government’s provisional debt stock, including central government and guaranteed debt, stood at GH¢630.2 billion (45% of GDP) at the end of October 2025, down from GH¢726.7 billion (61.8% of GDP) at the end of 2024. Out of that, external debt was GH¢319.2 billion (22.8% of GDP) while domestic debt hit GH¢311 billion (22.2% of GDP).

    The drop in public debt comes down to a mix of a stronger cedi, smart debt management, lower borrowing costs, and fiscal discipline, which even helped Ghana post a healthy primary surplus.


     

    bank of Ghana Cedi Appreciation Domestic Debt External Debt GDP Public Debt
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