Finance Minister Ato Forson announced a transformative partnership with the Arab Bank for Economic Development in Africa worth $500 million as Ghana’s total public debt declined dramatically from GH¢763.8 billion to GH¢628.8 billion over twelve months.
The landmark financing agreement signed Tuesday at Bank of Ghana headquarters positions Ghana to fund critical infrastructure projects while maintaining fiscal discipline that reduced debt-to-GDP ratio from 64.9% to 44.9% between July 2024 and July 2025.
BADEA President Abdullah KH ALMUSAIBEEH’s Accra visit culminated in the 24-Hour Economy Programme financing deal, marking his first major agreement since assuming office on July 1, 2025, following appointment by the institution’s Board of Governors in April.
Forson emphasized that future borrowing will exclusively target transformative investments, highlighting feasibility studies for the proposed Accra-Kumasi motorway project scheduled for completion within two-and-a-half years as a strategic infrastructure priority.
The debt reduction achievement represents one of Africa’s most significant fiscal turnarounds, with external debt falling from 57.4% of total public debt in December 2024 to 49% by mid-2025, demonstrating successful implementation of debt restructuring programs.
Ghana’s improved debt sustainability enabled the country to meet all 2025 Eurobond obligations totaling $349.5 million in July, rebuilding creditor confidence after completing domestic debt exchange programmes affecting banking sector liquidity.
The $500 million BADEA facility includes an initial $60 million tranche channeled through Development Bank Ghana for small and medium enterprise lending, with additional banks and non-bank financial institutions expected to participate in the programme expansion.
Former Finance Minister Dr. Amin Adam recently disputed government debt reduction claims, though official Bank of Ghana data confirms the substantial decline in total public debt stock over the twelve-month period ending July 2025.
Forson’s strategic approach emphasizes real sector investment despite tight fiscal space, leveraging partnerships with development institutions like BADEA to secure funding for projects delivering long-term economic value rather than short-term fiscal relief.
The minister’s dual role as EBID Chairman, assumed in April 2025, enhances Ghana’s regional infrastructure financing capacity while promoting intra-ECOWAS trade and environmental sustainability across bank-funded projects.
BADEA’s renewed partnership with Ghana extends beyond traditional project financing, supporting social sector development that Forson described as investment in the country’s future while maintaining alignment with transformative development objectives.
The Accra-Kumasi motorway project represents Ghana’s infrastructure modernization priorities, potentially connecting with broader regional initiatives including the Abidjan-Lagos Corridor Highway project scheduled for 2026-2030 implementation.
Ghana’s debt management success contrasts sharply with Africa’s mounting $1.3 trillion debt crisis, with Forson advocating for equitable global responses to continental financing challenges while demonstrating domestic fiscal responsibility.
The finance minister’s commitment to prudent debt management includes exchange rate appreciation policies that contributed significantly to improved debt profile metrics, with comprehensive debt audit completion expected by end-August 2025.
Road sector development gains momentum through the “Big Push initiative” framework operating within 24-hour economy parameters, enabling accelerated project delivery while maintaining employment generation objectives across multiple economic sectors.
