KEY POINTS
- Mahama claims the Akufo-Addo government left Ghana in a debt crisis.
- Dr. Amin says economic growth must be considered alongside debt levels.
- External factors like COVID-19 and the Russia-Ukraine war worsened Ghana’s debt.
President John Mahama’s assertions that the Akufo-Addo administration left behind a significant debt crisis have been denied by former Finance Minister Mohammed Amin Adam.
Mahama claims Akufo-Addo government left Ghana in a debt crisis
On Thursday, February 27, Dr. Amin addressed President Mahama’s first State of the Nation Address (SONA) of his second term. With a national debt of GH₵721 billion, which includes GH₵68 billion due by the Electricity Company of Ghana (ECG) and GH₵32 billion in COCOBOD debt, Mahama characterized Ghana’s economy as being in crisis during his speech. Dr. Amin’s management of the economy was also attacked by the president, who likened its state to that of a patient in an intensive care unit.
However, Dr. Amin contended that debt by itself does not characterize the health of an economy in an appearance on JoyNews‘ The Pulse on Thursday, February 27.
“You possess both assets and liabilities. Any novice accountant is aware that debts, liabilities, and assets are all taken into account when evaluating a company’s performance, Dr. Amin stated. “The equation is not complete if the president was solely discussing debts. Intellectual dishonesty would be that.
External factors contributed to Ghana’s rising debt levels
Dr. Amin ascribed Ghana’s debt predicament to outside forces that had a significant effect on world economy, including as the COVID-19 epidemic and the conflict between Russia and Ukraine.
The impacts of COVID-19 and the conflict in Ukraine have even been recognized by the World Bank and the International Monetary Fund (IMF). “The context is very clear if you want to understand how these debts accumulated,” he remarked.
Citing debt data alone is not enough, the former finance minister stressed. Rather, the sustainability of debt should be evaluated in relation to GDP.
He maintained that the Akufo-Addo administration increased Ghana’s GDP by $20 billion over seven years in spite of borrowing.
“Achieving $20 billion is no minor feat. We borrowed money, but we made good use of it to boost the economy, Dr. Amin claimed.
