The World Bank has issued a compelling directive to Ghana’s President John Dramani Mahama, advising him to focus on strengthening the nation’s economy before considering a return to the Eurobond market.
This guidance follows Ghana’s 2022 debt default of $30 billion, driven by escalating borrowing costs that surged from 5% of GDP in 2013 to 14% by 2022, as per recent IMF statistics. The recommendation emphasizes the need for robust fiscal reforms to prevent another financial crisis, urging a cautious approach to international borrowing.
World Bank’s Advice to Ghana’s President, John Dramani Mahama [X Post]
Don’t rush back to Eurobond market, fix the economy first – World Bank tells Ghana#JoyNews pic.twitter.com/tbywDQTR7C
— JoyNews (@JoyNewsOnTV) September 26, 2025
Since reclaiming the presidency in the 2024 elections, Mahama has overseen notable economic gains, including a 50% drop in inflation and a steadier cedi, according to Bloomberg’s 2025 economic rankings. These improvements align with the World Bank’s strategy, offering a critical opportunity to address structural weaknesses rather than risking further debt through early Eurobond re-entry. This progress highlights Ghana’s potential to build a resilient financial foundation under Mahama’s leadership.
Reactions on social media platforms like X reveal a divided public, with some praising the World Bank’s foresight, while others, including local commentator@AmpongHezekiel, view the 1944-established institution with suspicion, accusing it of imposing outdated policies on developing nations. Mahama’s recent statements during press conferences echo the World Bank’s caution, suggesting a move toward economic self-sufficiency, a stance that resonates with his administration’s broader vision for Ghana.
The World Bank’s advice complements ongoing support through the IMF’s Extended Credit Facility and Development Policy Operations, aimed at easing Ghana’s economic strain. With global lending rates hovering around 6% for private creditors in 2023, as noted in the World Bank’s International Debt Report, the pressure is on. Analysts point to Mahama’s focus on revitalizing sectors like gold, oil, and cocoa key drivers of export growth as pivotal to ensuring long-term fiscal health.
As Ghana stands at a crossroads, the balance between global expertise and national autonomy will shape its future. Mahama faces the challenge of leveraging international insights while championing local priorities, a decision that could redefine Ghana’s economic landscape.
