The government has paid GHS12 billion to bondholders under the Domestic Debt Exchange Programme in a move to stabilize Ghana’s economy and restore investor confidence.
This announcement was made by Finance Minister Dr. Mohammed Amin Adam during the mid-year budget review presented to Parliament on Tuesday, July 23.
Dr. Adam emphasized the government’s dedication to fulfilling its financial obligations and ensuring economic stability. “The payment of GHS12 billion to bondholders marks a critical step in our efforts to restore confidence in the financial markets and stabilize the economy. This payment is a testament to our commitment to fiscal discipline and prudent financial management,” he stated.
The Finance Minister explained that this payment aligns with the broader strategy of economic recovery and growth. The Domestic Debt Exchange Programme, introduced to manage and restructure the country’s debt, has been instrumental in achieving these objectives. “Through this programme, we have not only managed to honor our commitments to bondholders but also created a more sustainable debt profile for the nation,” Dr. Adam added.
This financial manoeuvre is part of a comprehensive set of measures aimed at improving the macroeconomic environment. Dr. Adam highlighted significant progress in stabilizing inflation and the exchange rate. “Since 2022, inflation has dropped by 31 percentage points, and the exchange rate has shown signs of stabilization. These are critical indicators of our economic resilience and recovery,” he noted.
Furthermore, Dr. Adam announced that Ghana’s international reserves have increased to 3.1 months of import cover, providing a stronger buffer against external shocks. This improvement is attributed to effective fiscal management and strategic negotiations with international partners, including the International Monetary Fund (IMF) and the Paris Club.
The mid-year budget review also underscored substantial investments in social programs and infrastructure. Over GHS5.4 billion has been disbursed for various social programs, including the Livelihood Empowerment Against Poverty (LEAP) initiative, the School Feeding Programme, and the National Health Insurance Scheme (NHIS). These programs are essential in supporting the most vulnerable segments of society.
In addition, nearly GHS10 billion has been invested in the road sector since January 2024. Key projects include the expansion of the Komfo Anokye Teaching Hospital (KATH), the rehabilitation of the Ofankor-Nsawam Road, and ongoing investments in water and sanitation infrastructure.
Education remains a priority for the government, with substantial funding allocated to the Free SHS programme. In the first half of 2024, GHS1.5 billion was invested in the Free SHS programme, ensuring access to quality education for the youth.
“Investing in education is investing in the future of our nation. We are committed to building a skilled and educated workforce,” Dr. Adam stated.
The government has also launched a GHS8.2 billion programme to boost small and medium-sized enterprises (SMEs), recognizing their critical role in job creation and economic development. This initiative aims to provide financial support and resources to local businesses, fostering innovation and entrepreneurship.
Dr. Adam also discussed progress in the digitalisation agenda, with a GHS135 million investment in the National Identification Programme. This initiative is crucial for improving governance and service delivery, ensuring that every Ghanaian can efficiently access essential services.
