Ghana Market Report


between rival parties and presidents and is regarded as one of the most stable African democracies. Since 1992 when the country returned to democratic governance it has either been the National Democratic Congress (NDC) or the New Patriotic Party (NPP) in power. Both the NDC and NPP have enjoyed 16 years apiece in government, enjoying eight years in power at each showing and alternating the other since the country took to the democratic path in 1992. Ruling parties are often considered favourite to win presidential races in Ghana, but none has ever won more than two consecutive terms.


ECONOMY Ghana has experienced a remarkable recovery since the discovery of major offshore oil deposits over ten years ago. Tis along with its stable economic system meant that the economy was growing at a fast rate in 2018 when Ghana was one of the world’s fastest-growing economies that year. Ghana’s fastest expansion in five years was in part due to the increased production of oil and gas which nearly doubled from the previous year in 2017. Te government was also able to curb inflation during the same period. Inflation decelerated to 9.6 per cent in April 2018 compared to April 2017 - the slowest pace since January 2013. By 2019, Ghana had the world’s fastest-growing economy. However, this growth led successive governments to engage


in excessive borrowing. Ghana’s public debt was already substantial standing at 63.1 per cent of GDP in December 2019, according to the IMF—when COVID-19 hit. To finance the pandemic response and stabilise the economy, the government secured $1bn from the IMF through the Rapid Credit Facility, along with additional external funding and support from the central bank. However, a considerable portion of these funds was mismanaged, as reported by the country’s auditor-general. In 2022, Ghana defaulted on most of its $30bn in external debt due to the pandemic, the war in Ukraine and rapid global interest rate hikes that boosted borrowing costs. Prices of goods rose by 54 per cent, the highest in two decades while Ghana’s cedi currency lost more than 50 per cent of its value in the same year. By September, Ghana's total debt had ballooned to $55bn, requiring the government to allocate over 70 per cent of its revenue to debt servicing—an obligation it could not fulfil. As a result, the country defaulted on many of its debt payments. Several credit rating agencies downgraded Ghana, cutting off its access to international borrowing. Tis situation compelled the government to seek assistance from the International Monetary Fund (IMF).


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In 2022, Ghana defaulted on most of its $30bn in external debt due to the pandemic, the war in Ukraine and rapid global interest rate hikes that boosted borrowing costs. Prices of goods rose by 54 per cent, the highest in two decades while Ghana’s cedi currency lost more than 50 per cent of its value in the same year.


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