The Government of Ghana has announced plans to raise GH¢75.7 billion from the domestic market between October and December 2025 to meet its public financing needs and refinance maturing debts. The move, outlined in the latest debt issuance calendar from the Bank of Ghana (BoG), forms part of ongoing efforts to stabilise government finances and manage debt obligations amid constrained access to international capital markets.
According to the BoG, about GH¢67.5 billion of the planned amount will be used to roll over existing maturities, while GH¢8.2 billion will represent new borrowing to fund government operations and expenditure during the fourth quarter.
The Central Bank noted that the funds will be raised through the issuance of short-term Treasury bills of 91, 182, and 364 days, alongside potential reopenings of medium- to long-term bonds under the Domestic Debt Exchange Programme (DDEP), depending on market conditions.
The BoG explained that this borrowing plan aligns with Ghana’s Medium-Term Debt Management Strategy, which aims to deepen the domestic capital market, extend the maturity structure of debt instruments, and enhance transparency in public borrowing.
“The issuance strategy seeks to ensure consistency, predictability, and market confidence in government securities, while providing an avenue for investors to participate in safe, risk-free instruments,” the Bank said in a statement accompanying the calendar.
Ghana has leaned more heavily on the domestic market since its suspension of Eurobond issuance in 2022, following the country’s classification as being in debt distress. Access to international credit remains limited pending completion of ongoing debt restructuring talks with bilateral and private creditors under the International Monetary Fund (IMF)-supported programme.
The fourth-quarter borrowing plan is significant because it highlights the government’s reliance on domestic liquidity to fund its operations and manage refinancing risks. While such borrowing ensures the continuation of key programmes and obligations, economists warn it could create competition with private businesses for credit.
Higher government demand for funds can drive up interest rates, making it more expensive for companies to borrow for expansion. In recent months, the average yield on Treasury bills has hovered around 26–28%, according to BoG data, reflecting both investor appetite and persistent inflationary pressures.
Despite these challenges, domestic borrowing remains a key instrument for the government to maintain macroeconomic stability, especially amid efforts to rebuild market confidence after the 2023–2024 debt exchange.
The latest borrowing initiative comes at a time when Ghana is implementing fiscal and structural reforms under the three-year, US$3 billion IMF Extended Credit Facility (ECF) arrangement. The programme seeks to restore debt sustainability, rebuild foreign reserves, and stabilise the cedi, which has seen periodic depreciation pressures due to import demand and limited forex inflows.
Government officials have repeatedly assured that borrowing decisions are being guided by sustainability metrics. The Ministry of Finance has projected that Ghana’s debt-to-GDP ratio, which peaked at over 90% in 2022, could fall below 70% by 2026 if the current fiscal consolidation path is maintained.
Additionally, reforms in revenue mobilisation, particularly through the Ghana Revenue Authority’s (GRA) digitisation initiatives, are expected to reduce the country’s financing gap and reliance on short-term borrowing.
Analysts view the latest issuance plan as a test of investor confidence in Ghana’s fiscal framework. The regular release of issuance calendars by the BoG is considered a transparency measure that helps financial institutions, pension funds, and individuals plan their investment strategies.
“The predictability of government securities issuance is crucial for market stability,” said a financial analyst based in Accra. “Investors need assurance that government will honour its commitments while maintaining realistic borrowing levels.”
Data from the Ghana Fixed Income Market (GFIM) shows that domestic bond trading volumes have gradually increased since the completion of the DDEP, reflecting renewed investor participation. However, liquidity in the secondary market remains limited, especially for longer-dated instruments.
While the GH¢75.7 billion borrowing plan is designed to maintain fiscal operations, it also underscores the delicate balance between debt management and economic recovery. A larger portion of government revenue continues to be allocated to interest payments, leaving less room for capital investment in infrastructure, education, and healthcare.
The IMF’s recent review of Ghana’s programme emphasised the need for continued expenditure control and improved efficiency in public spending. Fiscal prudence, combined with targeted investments in productive sectors, will be key to sustaining growth and reducing the debt burden over time.
Local economists also stress that strengthening domestic capital markets is essential to reduce over-reliance on short-term instruments. Developing corporate bond markets, enhancing financial literacy, and encouraging long-term savings through pension schemes could broaden funding sources beyond Treasury bills.
The success of Ghana’s Q4 2025 borrowing plan will depend largely on investor participation and macroeconomic stability. If implemented effectively, it could help maintain liquidity in government operations, stabilise debt servicing, and enhance confidence in the domestic financial system.
However, sustained fiscal discipline, improved revenue generation, and continued policy credibility will remain critical to ensuring that Ghana’s growing domestic debt does not undermine future economic recovery.
As the government prepares for the 2026 fiscal year, market watchers will closely monitor how the upcoming auctions perform and what signals they send about investor sentiment and Ghana’s broader economic trajectory.
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