The Economist Intelligence Unit’s (EIU) Africa Economic Outlook 2025 has advised Ghana to find alternative funding solutions to avoid excess reliance on foreign loans.
According to the report, “the worst of the region’s sovereign debt pressures appear to be over, but external debt servicing burdens remain high”.
This, the EIU warned presents a critical challenge for African countries like Ghana, calling for the need to improve domestic revenue collection.
The report said Ghana is one of the many African nations grappling with macroeconomic stability challenges.
“With nearly half of the continent’s countries still under IMF programs in 2025, fiscal discipline and sustainable financing have become even more critical”.
The EIU observed that high external debt servicing costs continue to strain national budgets, making it imperative for Ghana to explore internal financing mechanisms.
The EIU report noted that “Africa will be home to most of the world’s fastest-growing economies in 2025, with increased investment expected in sectors such as renewable energy, ICT, and logistics. This presents a significant opportunity for Ghana. The nation can strategically position itself to benefit from these trends while ensuring infrastructure investments align with national development priorities”.
Some economic analysts argue that Ghana’s infrastructure financing model should be tailored to long-term economic sustainability, rather than short-term debt accumulation. This approach is essential to avoid the pitfalls of unsustainable debt burdens.
However, disruptive regional rivalries and lingering social issues remain a concern for economic stability, as highlighted in the EIU report.
“Economic performance varies considerably across the continent, and intense global geopolitics will create a difficult backdrop and present tough decisions for African governments. Ghana must navigate these complexities while implementing policies that ensure sustainable infrastructure development”.
The EIU again warned that with external debt and servicing burdens remaining high across Africa, Ghana must avoid the pitfalls of over-reliance on external borrowing.
“The worst of the region’s sovereign debt pressures appear to be over, but economic performance varies considerably. Therefore, Ghana must implement policies that prioritize sustainable financing mechanisms to ensure resilience against global economic shocks”.
While challenges such as inflation, geopolitical tensions, and supply chain disruptions persist, Ghana has the potential to chart a new course in infrastructure financing. Experts believe that a well-coordinated strategy involving pension funds, public-private partnerships (PPPs), and policy reforms will drive the country’s infrastructure growth in a sustainable manner.
According to the EIU, “attracting more inward foreign direct investment has proved difficult for many African states in recent years, but foreign investment targeting Africa is expected to edge higher in 2025”.
It added that Ghana must strategically position itself to capitalize on this trend by creating an attractive investment climate for both domestic and international investors.
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