Ghana’s financial markets are facing significant risks due to rising public debt, but the country’s energy sector offers strong potential for economic growth, according to Dr. Johnbosco Dramani.
Speaking at a financial forum, Dr. Dramani highlighted the impact of global economic trends on Ghana’s financial stability while also pointing to key industries driving wealth creation.
Dr. Dramani emphasized that Ghana’s public debt has reached GHS 742 billion as of 2024, accounting for 70.6% of the nation’s Gross Domestic Product (GDP).
He noted that external debt makes up 69% of this figure, which poses risks to financial stability and investor confidence.
“A high debt burden reduces the country’s financial stability, increases investor risk, and makes it more difficult to secure infrastructure funding,” he explained.
The financial strain has also led to reduced credit ratings, further limiting access to loans and investment.
However, despite these challenges, Dr. Dramani pointed to Ghana’s energy sector, particularly oil and gas, as a major driver of wealth creation.
He noted that the global push for renewable energy has accelerated the exploitation of nonrenewable resources, allowing Ghana to capitalize on its recent oil discoveries.
“In 2021 alone, Ghana’s three offshore oil fields produced 55.06 billion barrels of crude oil,” he said, adding that tax incentives, a favorable fiscal regime, and a strong regulatory framework have made the sector attractive to investors.
He further highlighted the country’s Gas Master Plan, which aims to expand gas infrastructure, creating opportunities for both local and foreign investors.
Dr. Dramani concluded by stressing the importance of strategic investment in key sectors to counterbalance the financial risks posed by rising public debt.
“A peaceful business environment, coupled with smart investment in oil, gas, and infrastructure, will be crucial for Ghana’s long-term economic stability,” he said.
Source: www.kumasimail.com
