Deloitte cautions government against rushed return to International Capital Market

Deloitte Ghana is urging the government to proceed with caution before re-entering the international capital market, despite recent signs of economic recovery and favourable credit rating upgrades.

The research and advisory firm stressed that Ghana must avoid repeating past mistakes that contributed to unsustainable debt levels, notably the crisis experienced in 2022.

While acknowledging the country’s improved macroeconomic performance in the last half of 2025, Deloitte emphasised that any new foreign debt should be kept to a minimum and invested only in strategic capital projects capable of generating returns to service the loans.

“Reliance on foreign debts must be moderated, with inflows strictly channelled into strategic capital investments that can adequately support repayment of such loans,” Deloitte advised, as quoted by MyJoyOnline.

Ghana’s debt profile has seen notable progress. The debt-to-GDP ratio fell from 78.5% in December 2021 to 43.8% in June 2025 — well below the medium-term target of 55% by 2028 set under the IMF programme. Total public debt dropped by GH¢113.7 billion in the first half of 2025, from GH¢726.7 billion at the end of December 2024 to GH¢613 billion by June.

This reduction was largely driven by the appreciation of the cedi against the dollar and the completion of the government’s debt restructuring exercise. As a result, the gross public debt-to-GDP ratio improved sharply from 70.6% in June 2024 to 43.8% in June 2025.

Deloitte expects this progress to strengthen Ghana’s position with global credit rating agencies such as S&P and Moody’s, potentially leading to further rating upgrades and a boost in investor confidence.

The firm commended the government’s efforts to enhance debt sustainability, particularly through the creation of cash buffers like the sinking fund. It, however, urged authorities to accelerate these measures and publish regular updates on the fund’s status to maintain market confidence.

Prince Antwi

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