What have you done with GH¢157bn borrowed? – Mahama asks Akufo-Addo

Former President John Dramani Mahama is demanding accountability of government’s borrowing insisting there are no tangible projects to show for after submerging the country in a mountain of debt.

Mr. Mahama contends that whereas there are multiple infrastructural projects to account for his borrowings, his arch-rival in the upcoming polls, Akufo-Addo who has incurred more debts in history has barely anything to account for in his three and half years.

“What have you done with GH¢157 billion? If you ask me to render accounts of what I used the GH¢56 billion loan I contracted for, I have a chain of projects in the system to mention. The Kwame Nkrumah Circle Interchange, Kasoa Interchange, Tema Harbour expansion, Regional hospitals, Kejetia and other critical road projects among others will speak for the additional debt I added in my administration,” he said at a rally at Adabraka in Accra.

He noted that President Akufo-Addo has achieved too little for the number of resources he has expended over the past four years.

For him, it’s meaningful that borrowed money is used for real infrastructure development and investment than to dissipate it into mere consumption.

Ghana’s total public debt stock jumped by 1.66 percent to hit GHS263.1 billion [$46.3bn] in July 2020, according to the latest Summary of Macroeconomic and Financial Data.

This represents about 68.3 percent of the country’s Gross Domestic Product and is gradually nearing the dreaded 70% of GDP.

In June 2020, the nation’s debt [loans] was estimated at GHS258.8 billion, approximately 67.2 percent of GDP.

From the figures, the external component alone is estimated at GHS138 billion [$24.3bn], representing 35.8 percent of GDP.

The domestic component of the debt is also estimated at GHS125.1 billion, approximately 32.5% of GDP.

The financial sector resolution bond, however, constitutes GHS14.2 billion, which is equivalent to 3.7 percent of GDP.

Between January 2020 and July 2020, Ghana’s debt has shot up by 28.5%. In January 2020, the total public debt stock was GHS204.6 billion.