Story By: Akua Oteng Amponsah
The African Development Bank (AfDB) has projected that Ghana’s debt-to-Gross Domestic Product (GDP) ratio will narrow slightly below 60% by the end of 2025, down from 61.8% in 2024, according to its 2025 Economic Outlook.
This projection comes as the Bank of Ghana reported a debt-to-GDP ratio of 55% in its May 2025 Summary of Economic and Financial Data, with the country’s overall debt estimated at GH¢769.4 billion (approximately US$49.5 billion).
The AfDB noted that out of 54 economies on the continent, 15 have debt ratios below pre-pandemic levels, with some countries experiencing substantial declines due to consolidation measures aimed at creating fiscal space for critical development areas.
For instance, Angola’s debt-to-GDP ratio fell by about 42.1 percentage points in 2024, the largest decline, followed by São Tomé and Príncipe with a decline of about 40 percentage points.
According to the AfDB, while the risk of a systemic debt crisis in Africa is contained, vulnerabilities persist, mainly due to high global interest rates and exchange rate depreciations, which increase debt service costs.
“Even with the measures taken to contain public expenditure, the primary deficit remains an important driver of debt, followed by interest payments and low GDP growth,” the AfDB stated.
