Presidential Advisor on the economy, Seth Terkper has defended the government’s 2025 budget, calling it a necessary step to implement austerity measures aimed at addressing the country’s external debt.

Terkper highlighted the evolution of Ghana’s debt portfolio over the years and stressed that alternative solutions will be crucial to prevent defaulting on external debt payments between 2026 and 2028.

Terkper made these remarks at a farewell ceremony honouring Simon Madjie, the former Executive Secretary of the American Chamber of Commerce-Ghana, who now serves as the CEO of the Ghana Investment Promotion Centre (GIPC).

“As we speak, we’ve just cleared the first and suspended budget, and three more major ones are ahead. For instance, one of them is an outlier, but the years 2026, 2027, and 2028 will be crucial. We must find a solution—whether through paying down the debt or refinancing.

“Otherwise, there is a rare possibility of defaulting for a third time. That’s the reality, and this is the concern driving the tough austerity measures in the current budget,” Terkper stated.

Meanwhile, the CEO of GIPC, Simon Madjie, reaffirmed the government’s commitment to ensuring the success of both local and foreign businesses in Ghana.

“I believe our country is truly open for business. The government is committed to reviewing the GIPC law to reflect the AfCFTA centre for investment. There will also be efforts to boost investment in sectors such as agribusiness, manufacturing, pharmaceuticals, and the 24-hour economy, as promised by His Excellency, President John Mahama,” Madjie said.

Meanwhile, the Minister of Finance, Dr. Cassiel Ato Forson expressed concerns about the country’s external debt service obligations. Over the next four years, Ghana is expected to pay a total of US$8.7 billion in debt servicing, which represents 10.9% of the country’s GDP. The largest payments are expected to be concentrated in 2027 and 2028.