Akufo-Addo Sparks Uproar By Declaring Ghana Is Not Broke During Controversial Address

• President Nana Akufo-Addo declared during his final State of the Nation that Ghana was not broke
• Akufo-Addo claimed propagandists were asserting Ghana was broke amid its ongoing debt default
• The president cited Ghana's growth rate and international reserves to defend his contentious claim

President Nana Akufo-Addo insisted during his final State of the Nation address that Ghana was not broke despite its inability to pay its domestic and external debt.

The outgoing leader attributed the critical assessment of Ghana's debt struggles to propagandists.

Akufo-Addo's comments sparked an uproar from some opposition legislators who questioned the president's data.

Amid an economic crisis, Ghana’s public debt was GH¢761 billion as of October 2024.

In 2022, per Reuters, Ghana suspended payments on most of its external debt in a bid to address its balance-of-payments deficit. These included Eurobonds, commercial loans and most bilateral loans.

Akufo-Addo's assertion about Ghana's debt status during his State of the Nation Address was criticised by observers.

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On Twitter, applied economist Alfred Appiah noted the restructuring as debt as an example of why the President's claim was false.

"The country that failed to pay its debts and had to restructure obligations to domestic and foreign investors to meet the requirements for an IMF bailout isn’t broke? What message does that send to the investors who suffered significant losses due to these debt exchanges?"

What was basis for Akufo-Addo's claim?

Akufo-Addo cited the growth rate and international reserves to defend his claim.

The president also said the government had started repaying some of its debts.

"Mr. Speaker, the country is not broke. We are leaving a gross international reserve of $8.7 billion. It is that this year's growth rate is projected to reach 6.7%.

"I'm happy to say, effective today, January 3, 2025, my government has begun paying the mature coupon payment," he added.

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Ghana's debt situation under Akufo-Addo

Under Akufo-Addo, the World Bank noted that Ghana faced a surge in public debt due to fiscal measures taken in response to external shocks, which resulted in losing access to international financial markets.

This forced the country into debt distress, dwindling international reserves, and escalating inflation.

Ghana implemented macroeconomic policy adjustments, including comprehensive debt restructuring and fiscal consolidation, to counter these economic challenges.

The government's bid to recover from the economic crisis is being supported by an IMF Extended Credit Facility approved in May 2023 for approximately $3 billion.

Akufo-Addo's aide collapses in Parliament

During Akufo-Addo’s final State of the Nation Address in Parliament, his aide-de-camp, Colonel Isaac Amponsah, collapsed on guard in the chamber shortly after the speech began.

As YEN.com.gh also reported, he lost his footing and collapsed without warning prompting, immediate attention from Parliamentary medical team, who rushed to the scene to assist.

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Proofread by Bruce Douglas, senior copy editor at YEN.com.gh

Source: YEN.com.gh