Ghana’s total public debt stock increased by GH¢78.41 billion in the first six months of 2026, rising from GH¢641.11 billion at the end of December 2025 to GH¢719.52 billion by the end of June.
The increase represents more than 12 per cent of the country’s end-2025 public debt stock and comes as the government steps up domestic borrowing to build financial buffers ahead of major debt-service obligations expected in 2027 and 2028.
According to the Bank of Ghana’s (BoG) latest Monetary Policy Report, the country’s debt-to-GDP ratio also edged up from 44.7 per cent at the end of December 2025 to 45 per cent in June 2026.
Although the increase in the debt-to-GDP ratio was relatively modest, the GH¢78.41 billion rise in the absolute debt stock highlights the government’s growing financing requirements.
Domestic Borrowing Drives Debt Increase
Domestic borrowing accounted for the bulk of the increase during the period. Domestic debt rose by GH¢57.36 billion, from GH¢333.76 billion in December 2025 to GH¢391.12 billion at the end of June 2026, representing 54.4 per cent of Ghana’s total public debt.
External debt, meanwhile, increased by GH¢21.04 billion in cedi terms, from GH¢307.36 billion to GH¢328.40 billion, accounting for 45.6 per cent of the total debt stock.
The BoG attributed the increase in domestic debt mainly to government efforts to build buffers for future debt-service obligations and support the financing of the 2026 budget.
The increase was also driven by the reopening of the domestic bond market in March 2026, tap issuances of medium- and long-term government securities and the recapitalisation of the Bank of Ghana.
The central bank said the government was taking advantage of relatively lower domestic borrowing costs, which it considered sustainable.
Government Builds Buffer for 2027, 2028 Debt Payments
A significant part of the government’s borrowing strategy is aimed at building sufficient resources in the Sinking Fund to meet substantial debt-service payments expected from bonds maturing in 2027 and 2028.
The approach allows the government to accumulate funds ahead of the maturities rather than wait until the obligations fall due.
While this could reduce refinancing risks and strengthen the government’s ability to honour upcoming payments, it also means adding to the current debt stock.
The effectiveness of the strategy will therefore depend on prudent management of the funds and continued fiscal discipline.
External Debt Rises on Cedi Depreciation
The BoG explained that Ghana’s external debt actually declined in foreign-currency terms during the first half of 2026 due to principal repayments.
However, depreciation of the Ghana cedi against major foreign currencies pushed up the value of the external obligations when converted into local currency.
As a result, external debt increased by GH¢21.04 billion in cedi terms despite the reduction in the actual foreign-currency obligations.
The development underscores the importance of exchange-rate stability to Ghana’s debt-management strategy, as further depreciation of the cedi could increase the domestic value of external debt even without substantial new foreign borrowing.
Multilateral Creditors Lead External Debt
Multilateral creditors remained Ghana’s largest source of external financing, accounting for 41.9 per cent of the country’s external debt as of June 2026.
International capital market debt accounted for 29 per cent, bilateral creditors represented 20 per cent, while commercial creditors accounted for 9.2 per cent.
The composition means developments in global financial markets, international interest rates and investor sentiment will continue to influence Ghana’s external financing conditions.
Treasury Bills Dominate Domestic Debt
Short-term securities remained the largest component of Ghana’s domestic debt, reflecting strong investor demand, particularly for 364-day Treasury bills.
Short-term instruments accounted for 41 per cent of domestic debt as of June 2026, while medium-term instruments represented 39.1 per cent and long-term instruments accounted for 19.7 per cent.
Although strong demand for Treasury bills provides the government with a readily accessible source of financing, heavy reliance on short-term instruments increases refinancing risks because the securities mature more frequently and must be rolled over or replaced with new borrowing.
Debt Sustainability Remains Key
The rise in the debt stock comes as the government seeks to consolidate public finances and strengthen confidence in Ghana’s debt-management framework following the domestic debt restructuring.
While much of the additional borrowing is intended to prepare for future debt obligations, higher debt also creates additional claims on government revenue through interest and principal repayments.
This could constrain fiscal space for infrastructure, health, education and other public services if borrowing continues to increase without corresponding improvements in revenue mobilisation and economic growth.
The performance of the cedi will also remain critical. A stable or stronger currency could help contain the domestic value of external obligations, while sustained depreciation could place additional pressure on the public finances.
With Ghana’s public debt reaching GH¢719.52 billion at the end of June 2026, the government faces the challenge of building adequate buffers for upcoming debt repayments without triggering another cycle of unsustainable debt accumulation.
The success of the strategy will depend on prudent borrowing, stronger revenue mobilisation, sustained economic growth, disciplined expenditure and continued stability of the Ghana cedi.
