Debt surge of seventy billion cedis exposes deep structural weaknesses in Ghana’s economy

A sharp increase of approximately seventy billion Ghana cedis in public debt has sparked renewed debate about the structural health of Ghana’s economy. According to former Information Minister Kojo Oppong Nkrumah, the latest debt figures reveal long standing weaknesses that go beyond short-term economic pressures.

Speaking on the issue, Oppong Nkrumah argued that the rising debt burden highlights fundamental problems in revenue mobilisation, expenditure control, and economic productivity. He noted that while external shocks such as global inflation and exchange rate pressures have played a role, internal inefficiencies remain a major concern.

He explained that Ghana’s economy continues to rely heavily on borrowing to finance recurrent expenditure rather than investment driven growth. This approach, he said, limits the country’s ability to generate sustainable revenue streams that could reduce dependence on loans.

Economists observing the trend have echoed similar concerns, pointing to weak tax compliance, a narrow tax base, and persistent inefficiencies in state owned enterprises. These challenges, they argue, have compounded the debt situation and limited fiscal flexibility.

Oppong Nkrumah stressed the need for structural reforms that focus on value addition, industrial expansion, and export competitiveness. He argued that without addressing these issues, debt accumulation would continue regardless of changes in government.

The rising debt stock has also raised concerns about its impact on social spending. Analysts warn that increased debt servicing obligations could crowd out funding for education, healthcare, and infrastructure development.

Government officials maintain that debt management strategies are being strengthened through fiscal consolidation and economic recovery programs. However, critics insist that deeper reforms are required to ensure long term stability.

As Ghana continues to navigate economic recovery, the debate over debt sustainability is expected to intensify. Many observers believe that addressing structural weaknesses will be key to preventing future debt surges and securing inclusive economic growth.