Key questions:
  1. In 2020, Ghana’s debt experienced a substantial upswing. What factors were instrumental in driving this debt surge? 
  2. Can this restructuring effectively end the recurring debt crisis the country faces?   

Ghana’s debt has steadily increased since 2013 but took a harrowing spike at the end of 2020. Over these seven years, Ghana not only breached the International Monetary Fund’s (IMF) recommended debt-to-GDP ratio of 70% but also recorded a staggering debt service-to-revenue ratio of 127%, compared to its 55% threshold.


By 2022, Ghana’s debt-to-GDP ratio was 88.1%, with a debt service-to-revenue ratio ranging from 70%-100%. According to the IMF, Ghana owes approximately $5.4 billion to bilateral creditors, including about $1.9 billion to China. However, a more substantial portion of the debt, approximately $13.1 billion, is owed to Eurobond holders. Additionally, Ghana carries a significant debt burden of around $34.5 billion of domestic debt, primarily owed to commercial banks and the Bank of Ghana (BOG).



Stears takes a concise dive into the key drivers behind Ghana’s colossal debt and evaluates the potential of debt restructuring to alleviate the country’s debt burden.