In his final State of the Nation Address (SONA) delivered on January 3, 2025, President Nana Addo Dankwa Akufo-Addo urged the incoming government, led by John Dramani Mahama, to prioritize reducing Ghana’s debt-to-GDP ratio to 55% by the end of its term.
Reflecting on the progress under his administration, President Akufo-Addo noted a notable decline in the debt-to-GDP ratio, which dropped from 79.2% in September 2024 to 74.6% in October 2024. He emphasized the importance of maintaining this trajectory to ensure long-term economic stability, stating, “The public debt-to-GDP ratio, therefore, has reduced from 79.2% in September 2024 to 74.6% in October 2024. This is expected to reduce further to 55% of GDP in net present value terms, a level that restores Ghana’s debt sustainability.”
He expressed confidence in the continuation of sound policies by the incoming administration, adding, “It is hoped that the new government will continue with the policies being implemented to achieve this debt sustainability target.”
The President also highlighted efforts to address Ghana’s public debt challenges, pointing out a significant reduction in the overall debt stock by GH¢46.8 billion between September and October 2024. “The stock of public and publicly guaranteed debt increased during the economic difficulties. However, the government is servicing its debts, honouring coupon payments for both domestic bonds and Eurobonds,” he remarked.
On the day of the address, he assured Parliament of the government’s commitment to fulfilling its financial obligations, declaring, “I am happy to inform the House that today, 3rd January 2025, my government will honour coupon payments to our Eurobond holders amounting to $346 million. We cannot afford to default on our debt repayments. That’s the advice I want to give to the incoming finance minister.”
The address marked the end of President Akufo-Addo’s tenure and the 8th Parliament of the 4th Republic, which will officially conclude on January 6, 2025, as required by Article 67 of the 1992 Constitution.
