The National Communication Director of the New Patriotic Party (NPP), Hon. Richard Ahiagbah has expressed in a social post his perplexity over the National Democratic Congress (NDC)’s stance on the government’s successful external debt negotiations.
The NDC has stated that there should be no celebration of the successful external debt negotiations.
However, Mr Ahiagbah challenged this position by questioning what the NDC would have done if they had been responsible for negotiating the significant savings of $4.7 billion off Ghana’s debt.
He highlighted that this amount is five times more than the $918 million the NDC borrowed in 2015 from the International Monetary Fund (IMF) to stabilize the economy.
Ahiagbah pointed out that the $4.7 billion saved from Ghana’s debt includes amounts borrowed by the NDC, yet they argue against celebrating this achievement.
Considering the substantial financial relief it brings to the nation, he found this stance perplexing.
In his post on his X platform, Mr Ahiagbah also extended commendations to President Nana Addo Dankwa Akufo-Addo for his leadership, Dr Mohammed Amin Adam for successfully concluding the negotiations, and Ken Ofori-Atta for laying the foundation for this positive outcome.
Ghana has completed three major debt restructuring operations: domestic debt restructuring, external bilateral debt restructuring, and negotiations with commercial bondholders.
Commenting on this matter, President Akufo-Addo said “In the face of these adversities, Ghana has shown remarkable resilience.”
He added, “We have embarked on a comprehensive strategy to revive our economy, and I am pleased to note that our efforts are bearing fruit.”
The President cited an impressive growth rate of 4.7% in the first quarter of 2024, surpassing the IMF’s forecast of 3.1%. This growth, driven by the industrial sector’s 6.8% expansion and a 4.1% rise in the agricultural sector, underscores the effectiveness of the government’s economic policies.
President Akufo-Addo also emphasized the significance of Ghana’s successful debt restructuring initiatives.
"We have completed three major debt restructuring operations,” he noted.
The domestic debt restructuring, which achieved a high participation rate of almost 95%, reduced coupon rates from 21% to 9% on average and extended maturities. This provided the government with much-needed breathing space and set the domestic debt-to-GDP ratio on a clear downward trend, expected to reach 55% by 2028.
The President also outlined the successful negotiations with external bilateral creditors, which resulted in a cash flow relief of approximately $2.8 billion. This relief, spanning from 2023 to 2026, allows the government to reallocate funds towards critical infrastructure and development projects that had been stalled due to financial constraints.
“Our economic recovery is strongly on course,” the President affirmed, attributing this progress to both governmental initiatives and the resilience of the Ghanaian people. He praised the collective effort and unyielding spirit demonstrated by Ghanaians during these challenging times.
The Ghana CARES ‘Obaatampa’ Programme, launched in 2021, continues to play a pivotal role in the nation’s economic strategy. This ambitious program focuses on supporting commercial farming, building the light manufacturing sector, developing engineering and ICT industries, fast-tracking digitalization, and creating jobs for young people.
The President also outlined the successful negotiations with external bilateral creditors, which resulted in a cash flow relief of approximately $2.8 billion. This relief, spanning from 2023 to 2026, allows the government to reallocate funds towards critical infrastructure and development projects that had been stalled due to financial constraints.
“Our economic recovery is strongly on course,” the President affirmed, attributing this progress to both governmental initiatives and the resilience of the Ghanaian people. He praised the collective effort and unyielding spirit demonstrated by Ghanaians during these challenging times.
The Ghana CARES ‘Obaatampa’ Programme, launched in 2021, continues to play a pivotal role in the nation’s economic strategy. This ambitious program focuses on supporting commercial farming, building the light manufacturing sector, developing engineering and ICT industries, fast-tracking digitalization, and creating jobs for young people.
The Ghana CARES ‘Obaatampa’ Programme sets out our roadmap towards the strong revitalization of the Ghanaian economy,” President Akufo-Addo explained. “Each of you must help and contribute to the success of this programme, by facilitating, amongst other things, as much foreign investment into the country as you can.”
President Akufo-Addo added “If you will recollect, I did say, at the height of the pandemic, that we knew how to bring the economy back to life, but did not know how to bring people back to life,” President Akufo-Addo reminded the audience.
“This remark was made to justify the extraordinary expenditures that the Government was forced to make during the pandemic to afford relief and protection to the population. I believe, in all humility, that the nation is today appreciative of the validity of my statement, as our economic recovery is strongly on course.”
