Dr. Cassiel Ato Forson, Ghana’s Finance Minister-designate, has unequivocally assured the nation and former President Nana Akufo-Addo that Ghana will not default on its debt obligations under his stewardship. This assurance comes in response to concerns raised by the former President during his final State of the Nation Address on January 3, 2025, where he underscored the critical importance of maintaining Ghana’s financial commitments and urged the incoming Finance Minister to prioritize debt repayments. Former President Akufo-Addo, in his address, also highlighted a recent $346 million payment to Eurobond holders as evidence of his administration’s commitment to honoring Ghana’s financial obligations, effectively setting the stage for a smooth transition of fiscal responsibility.
Dr. Forson, appearing before the Appointments Committee of Parliament on January 13, 2025, directly addressed the former President’s concerns, offering a firm and reassuring message: “As I’ve said, don’t be scared. We will manage this debt.” He acknowledged the former President’s advice and reiterated his commitment to upholding Ghana’s reputation in the international financial community. His direct response, “His Excellency the former President in his last State of the Nation Address said that he did not expect the incoming Finance Minister to default, and I want to use this podium and tell him that we will not default,” served to allay any fears of a potential default and emphasized the continuity of fiscal policy despite the change in administration.
This commitment to responsible debt management signifies the incoming administration’s recognition of the importance of maintaining investor confidence and preserving Ghana’s access to international capital markets. A default would have severe repercussions for the Ghanaian economy, including increased borrowing costs, reduced access to credit, and potential damage to the country’s reputation and credit rating. It would also limit the government’s ability to invest in essential social programs and infrastructure projects, hindering economic growth and development.
Dr. Forson’s assurance is not merely a statement of intent; it is backed by a commitment to implement prudent fiscal measures designed to ensure economic stability and generate the resources necessary to meet Ghana’s debt obligations. These measures, though not explicitly detailed in his address to the Appointments Committee, are expected to encompass a range of fiscal strategies, including revenue enhancement, expenditure rationalization, and potentially, debt restructuring negotiations. The overarching goal is to create a sustainable fiscal framework that allows Ghana to service its debt while simultaneously investing in its future.
The emphasis on careful management and fiscal responsibility underscores the incoming administration’s understanding of the delicate balance required to navigate the current economic landscape. Global economic uncertainties, coupled with domestic challenges, require a measured and strategic approach to fiscal policy. By prioritizing fiscal prudence, Dr. Forson aims to reassure both domestic and international stakeholders that Ghana is committed to responsible debt management and sustainable economic growth.
This commitment to avoiding default and maintaining fiscal responsibility is crucial for Ghana’s economic future. It signals a continuity of purpose in managing the nation’s finances and provides a foundation for sustainable economic development. By adhering to these principles, the new administration aims to create an environment conducive to investment, job creation, and improved living standards for all Ghanaians. The focus on debt management is not just about meeting current obligations; it’s about building a stronger, more resilient economy for the future.
