Ghana’s total public debt stock increased by GH¢78.41 billion in the first six months of 2026, climbing from GH¢641.11 billion at the end of December 2025 to GH¢719.52 billion by the end of June 2026
The increase means that within just six months, the country added an amount equivalent to more than 12% of its end-2025 public debt stock to the total obligations of the state.
In relation to the size of the economy, the debt stock increased from 44.7% of Gross Domestic Product (GDP) at the end of 2025 to 45% of GDP at the end of June 2026.
The latest figures point to a renewed increase in government borrowing as the authorities seek to strengthen financial buffers ahead of substantial debt-service obligations expected to fall due in 2027 and 2028, while also supporting budget financing.
Although the increase in the debt-to-GDP ratio was relatively modest, the absolute rise in the debt stock has important implications for government finances, interest costs, fiscal space and the ability of the economy to absorb future shocks.
Domestic borrowing drives increase
According to the Bank of Ghana’s (BoG) latest Monetary Policy Report, the bulk of the increase came from domestic borrowing.
The Bank of Ghana said 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.
Domestic debt therefore accounted for 54.4% of Ghana’s total public debt stock by June 2026.
External debt, meanwhile, increased by GH¢21.04 billion in local currency terms, rising from GH¢307.36 billion at the end of December 2025 to GH¢328.40 billion in June 2026.
External obligations represented the remaining 45.6% of total public debt at the end of June.
The figures indicate that domestic borrowing was responsible for the larger share of the increase in the debt stock during the first half of the year.
BoG attributed the rise primarily to government efforts to build buffers for future debt-service obligations and support budget financing.
The increase in domestic debt was in line with the government’s net domestic financing target and broader strategy to strengthen its capacity to meet upcoming debt-service commitments.
Bond market reopening adds to debt
A major factor behind the increase in domestic debt was the reopening of the domestic bond market in March 2026.
BoG said the increase was also driven by tap issuances of medium- and long-term debt instruments, as well as the recapitalisation of the Bank of Ghana.
The reopening of the bond market represents a significant development in Ghana’s post-Debt Exchange Programme financing architecture.
After the restructuring of a substantial portion of domestic debt, renewed access to the domestic capital market provides government with additional avenues for financing its obligations.
However, the increase also means that government is once again accumulating new liabilities at a time when debt sustainability and fiscal consolidation remain important considerations for economic policy.
The central bank said government was taking advantage of relatively lower domestic borrowing costs, which it considered sustainable.
This suggests that the government’s borrowing strategy is being influenced not only by the need to raise funds but also by prevailing financing conditions in the domestic market.
Building a buffer for 2027 and 2028
The government’s decision to increase domestic borrowing is closely linked to expected debt-service pressures in the coming years.
BoG said the increase in domestic debt formed part of efforts to build sufficient buffers in the Sinking Fund to meet large debt-service payments expected from bonds maturing in 2027 and 2028.
The strategy effectively involves borrowing and setting aside resources ahead of time rather than waiting until large obligations fall due.
Such an approach can reduce refinancing risks and provide greater certainty around government’s ability to honour upcoming obligations.
However, it also means that the state is increasing its debt stock in the present to prepare for liabilities that will have to be managed in the future.
The economic benefit of the strategy will therefore depend heavily on whether the funds raised are managed prudently and whether the government can maintain sufficient fiscal discipline to prevent the accumulation of new debt from undermining the gains achieved through earlier restructuring.
External debt rises in cedi terms
The increase in external debt requires a different interpretation.
According to BoG, Ghana’s external debt declined in foreign currency terms during the period because of principal repayments.
However, the depreciation of the Ghana cedi increased the value of those external obligations when translated into local currency.
Consequently, although the country reduced its external debt exposure in foreign currency terms, the cedi value of the obligations increased by GH¢21.04 billion, from GH¢307.36 billion to GH¢328.40 billion.
This highlights the continuing importance of exchange-rate stability to Ghana’s public finances.
When the cedi depreciates against the currencies in which external debt is denominated, the domestic-currency value of those obligations rises even when the actual foreign-currency debt has fallen.
This can increase the fiscal burden associated with debt servicing and complicate efforts to manage the debt-to-GDP ratio.
For an economy with substantial external obligations, sustained exchange-rate stability therefore remains an important component of debt management.
Multilateral creditors dominate external debt
The composition of Ghana’s external debt also provides important insight into the country’s financing structure.
Multilateral creditors remained the largest source of external financing, accounting for 41.9% of total external debt as of June 2026. Bilateral creditors accounted for 20%.
Commercial creditors represented 9.2%, while international capital market debt accounted for 29%.
The figures show that multilateral institutions continue to play a significant role in Ghana’s external financing.
At the same time, the sizeable share of international capital market debt means developments in global financial markets, investor sentiment and international interest rates can continue to affect Ghana’s financing conditions.
The composition is also important because different categories of creditors carry different financing costs, maturities and repayment conditions.
Treasury bills dominate domestic debt
On the domestic side, short-term instruments remained the largest component of government debt.
BoG said this reflected strong investor demand for government securities, particularly 364-day Treasury bills.
Short-term instruments accounted for 41% of domestic debt as of June 2026.
Medium-term instruments represented 39.1%, while long-term instruments accounted for 19.7%.
The dominance of short-term instruments has both advantages and risks.
Strong demand for Treasury bills provides government with a relatively accessible source of financing and can help meet immediate cash-flow requirements.
However, reliance on short-term debt also exposes the government to refinancing risks because these instruments mature more frequently and must be rolled over or replaced with new financing.
If market conditions deteriorate, refinancing maturing short-term obligations could become more expensive.
The government’s ability to maintain investor confidence and preserve stable domestic financing conditions will therefore be critical.
Implications for fiscal space
The rise in public debt comes at a time when government is seeking to consolidate public finances and restore confidence in Ghana’s debt-management framework.
The GH¢78.41 billion increase does not necessarily mean that the government has abandoned fiscal consolidation.
A significant portion of the borrowing is linked to the deliberate accumulation of buffers to meet known future obligations.
Nevertheless, every increase in public debt creates future claims on government revenues.
Higher debt ultimately means greater interest and principal obligations, potentially limiting the resources available for infrastructure, health, education and other public services if borrowing continues to rise without corresponding improvements in revenue mobilisation and economic growth.
The key issue, therefore, is not simply the size of the increase but the purpose, cost and sustainability of the additional borrowing.
Borrowing costs remain crucial
BoG’s assessment that domestic borrowing costs are relatively low and sustainable provides some reassurance.
Lower borrowing costs can reduce the immediate fiscal burden associated with additional domestic debt and make it easier for government to build the required buffers.
However, the sustainability of the strategy depends on maintaining favourable financing conditions.
A sharp increase in interest rates, weaker investor demand or renewed macroeconomic instability could raise the cost of refinancing Treasury bills and other domestic instruments.
The government must therefore balance its need to accumulate funds for future debt service against the risks associated with increasing the stock of short-term obligations.
Exchange rate remains a major risk
The external debt figures also demonstrate why the performance of the cedi remains central to Ghana’s debt sustainability.
The fact that external debt declined in foreign-currency terms but increased by GH¢21.04 billion when measured in cedis illustrates the impact of exchange-rate movements on the public balance sheet.
A stronger cedi can reduce the domestic-currency value of external obligations, while depreciation has the opposite effect.
Consequently, exchange-rate stability can complement fiscal consolidation by limiting valuation increases in external debt.
Conversely, renewed and sustained depreciation could place additional pressure on government finances even without significant new external borrowing.
Debt stock reaches GH¢719.52bn
The increase to GH¢719.52 billion by June 2026 places the management of public debt firmly among the major economic policy challenges facing Ghana.
The debt-to-GDP ratio of 45%, although only marginally higher than the 44.7% recorded at the end of 2025, does not fully capture the pressures associated with the absolute debt stock.
Debt sustainability also depends on the cost of borrowing, maturity structure, exchange-rate movements, economic growth, government revenues and the ability to refinance maturing obligations.
The latest figures suggest that government is attempting to address one of the biggest risks in Ghana’s debt profile—large future maturities—by building financial buffers ahead of time.
That strategy could help reduce refinancing pressures in 2027 and 2028 if the funds are accumulated and managed effectively.
However, the approach also requires strict expenditure controls and strong revenue performance to prevent the debt stock from rising faster than the economy’s capacity to service it.
Balancing buffers with fiscal discipline
The first-half debt figures therefore present a mixed picture.
On one hand, the increase reflects a deliberate effort to prepare for known debt-service obligations, take advantage of lower domestic borrowing costs and strengthen government’s financing capacity.
On the other hand, the GH¢78.41 billion increase in six months demonstrates that Ghana’s financing requirements remain substantial.
The challenge for policymakers will be to ensure that borrowing undertaken to build buffers does not become a source of renewed debt accumulation.
The government will also have to carefully manage the maturity structure of domestic debt, particularly given the 41% share of short-term instruments, while maintaining investor confidence in the Treasury market.
For the broader economy, the implications will extend to interest rates, private-sector credit, investment and government spending.
If domestic borrowing remains well managed and borrowing costs stay contained, the additional financing could help smooth debt-service obligations and reduce refinancing risks.
If borrowing accelerates without corresponding fiscal and economic improvements, however, it could constrain fiscal space and place renewed pressure on the domestic financial market.
BoG’s latest figures consequently underscore a central challenge for Ghana’s economic recovery: building sufficient financial buffers to meet future obligations without creating a new cycle of debt accumulation.
With public debt now at GH¢719.52 billion, the success of the strategy will ultimately depend on whether the government can combine prudent borrowing with stronger revenue mobilisation, sustained economic growth, disciplined expenditure and continued stability in the cedi.
