Professor Godfred Bokpin, an economist and lecturer at the University of Ghana Business School (UGBS), has downplayed public anxiety surrounding Ghana’s rising debt levels, arguing that the country’s overall debt position has improved and no longer warrants alarm.
Speaking on Joy FM’s AM Show, Prof Bokpin cautioned against overreacting to recent increases in the debt stock, stressing that headline figures can be misleading when viewed in isolation. He urged the public to concentrate on the broader issue of debt sustainability rather than short-term changes largely influenced by exchange rate movements.
“I don’t think this should be a major concern. Let’s not major on the minor,” he said, referencing the International Monetary Fund’s (IMF) most recent debt sustainability assessment.
According to Prof Bokpin, the IMF’s October 2025 Debt Sustainability Analysis indicates that Ghana has exited the high-risk debt distress category and is now classified as a moderate debt risk country, reflecting improving economic fundamentals.
“If you examine the IMF’s October assessment, Ghana is no longer considered to be at high risk of debt distress. Our status has improved to moderate risk, and that is an important signal,” he explained.
His remarks follow the release of fresh data from the Bank of Ghana, analysed by JoyNews Research, which shows that Ghana’s public debt increased by GH¢71.6 billion in the third quarter of 2025. The surge has been attributed mainly to the sharp depreciation of the cedi against the US dollar over the period.
As a result, Ghana’s total public debt has risen to GH¢684.6 billion, with projections suggesting it could surpass GH¢700 billion by the close of the year should currency pressures persist.
While acknowledging the rise, Prof Bokpin insisted the figures must be properly contextualised. He recalled that Ghana officially entered the high-risk debt distress category in 2014, a development that compelled the government to seek IMF support.
“That was why President Mahama, on August 6, 2014, approached the IMF for what became Ghana’s 16th IMF-supported programme,” he noted.
Although Ghana exited that programme in April 2019, Prof Bokpin argued that it fell short of restoring full debt sustainability, describing this as a critical weakness of the intervention.
“We left the programme without fully resolving the debt sustainability challenge, and that was a major drawback,” he said.
The economist maintained that some level of borrowing remains unavoidable, particularly to refinance existing obligations and support economic recovery. However, he emphasised that the key issue is whether borrowing is managed sustainably, not the absolute size of the debt.
He added that recent increases, largely driven by exchange rate effects rather than excessive new borrowing, do not automatically point to a return to crisis conditions.
Ghana is currently implementing IMF-backed reforms aimed at stabilising the economy, rebuilding confidence, and placing public debt on a more sustainable trajectory, even as it grapples with currency volatility and broader global economic headwinds.
Author: Edem Latsu Nukafu
Edem Latsu Nukafu, a passionate communications professional dedicated to public relations, journalism, media strategy, and content development. He holds both a Diploma and Bachelor of Arts Degree in Communication Studies (Public Relations) from the University of Media, Arts and Communication – UniMAC-IJ. A member of Ghana Journalists Association (GJA).
