Ghana has been an active participant in the international capital markets since 2007 when it issued its first Eurobond. Over the years, successive governments have increasingly relied on external borrowing to bridge budget deficits and sustain economic activities. While Ghana has at times accessed favourable credit terms, the overall debt trajectory has been marked by unsustainable borrowing practices, weak fiscal discipline, and limited transparency. The assessment by major credit rating agencies—Moody’s, Standard & Poor’s, and Fitch—has significantly influenced the country’s access to global financial markets. However, the downgrade of Ghana’s credit rating in 2022, coupled with an International Monetary Fund (IMF) and International Development Association (IDA) assessment revealing unsustainable debt levels, has effectively shut Ghana out of international capital markets, leading to its 18th IMF bailout.
The Ghanaian government reported a debt- to-GDP ratio of 75.9%, but after the IMF’s assessment, the figure was revised to 105%, highlighting discrepancies in debt reporting. The variation arose due to the government’s exclusion of contingent liabilities, such as energy sector debts and other off-balance- sheet obligations. This discrepancy underscores the urgent need for standardized and transparent debt accounting and
reporting mechanisms. Civil society organizations (CSOs), international financial institutions, and academia have consistently raised concerns about Ghana’s inefficient debt management, weak parliamentary oversight, and inadequate scrutiny of loan agreements and their fiscal implications.
In response to these challenges, the Economic Governance Platform (EGP), with funding support from Open Society Africa, commissioned three in-depth studies on Ghana’s debt management framework. These studies examined key dimensions of the country’s debt landscape: Debt Management Mechanisms and Frameworks – Analyzing Ghana’s institutional and legal frameworks for debt accumulation and repayment. Debt Transparency, Communication, and Accountability — Assessing the effectiveness of public debt reporting, parliamentary oversight, and stakeholder engagement. Debt Accumulation, Mitigation, and Sustainability — Evaluating Ghana’s borrowing patterns, debt servicing strategies, and policy options for long-term fiscal sustainability.