Ghana’s public debt profile showed mixed trends in 2025, with a significant increase in domestic borrowing offset by a sharp decline in the overall debt-to-GDP ratio, according to the Bank of Ghana.
Data from the central bank’s March 2026 Monetary Policy Report indicate that government added GH¢24 billion to its domestic debt stock during the year, pushing it from GH¢309.8 billion in December 2024 to GH¢333.8 billion by December 2025.
The increase in domestic debt was largely driven by short-term borrowing instruments, reflecting what analysts describe as a deliberate strategy by government to build financial buffers to meet its obligations amid ongoing fiscal adjustments.
Despite the rise in domestic debt, the broader public debt picture improved significantly.
The provisional total public debt stock—covering central government and guaranteed debt—declined sharply to GH¢640.99 billion, representing 45.3% of Gross Domestic Product (GDP) at the end of December 2025.
This marks a notable drop from GH¢726.7 billion, or 61.8% of GDP, recorded a year earlier.
The decline suggests a substantial improvement in Ghana’s debt sustainability indicators, even as borrowing continues in key segments of the domestic market.
A breakdown of the figures shows that domestic debt accounted for GH¢333.8 billion, equivalent to 23.6% of GDP, while external debt stood at GH¢307.2 billion, representing 21.7% of GDP.
Interestingly, while external debt increased in foreign currency terms due to fresh loan disbursements, it recorded a sharp decline when measured in local currency.
The external debt stock dropped from GH¢416.8 billion in December 2024 to GH¢307.2 billion in December 2025.
According to the central bank, this significant reduction—amounting to GH¢125.2 billion, or about 9 percent of GDP—was driven largely by the strong performance of the Ghana cedi, as well as principal repayments on Eurobonds and multilateral loans.
The appreciation of the local currency effectively reduced the cedi value of external obligations, contributing to the overall decline in the country’s debt stock.
The Bank of Ghana noted that the improved debt position is reflected in both external and domestic debt-to-GDP ratios, underscoring the impact of recent macroeconomic developments.
It attributed the downward trend in public debt to a combination of factors, including exchange rate gains, increased amortisation of existing debt, and what it described as prudent borrowing practices.
The central bank also highlighted the role of reduced borrowing costs and improved fiscal discipline, which contributed to a higher primary surplus and helped stabilise the debt trajectory.
However, the continued reliance on short-term domestic instruments raises questions about liquidity pressures and refinancing risks, as government navigates the balance between meeting immediate financing needs and maintaining long-term debt sustainability.
The latest data therefore present a nuanced picture: while Ghana’s overall debt burden relative to the size of the economy has improved markedly, underlying borrowing activity—particularly in the domestic market—remains active as government seeks to stabilise the economy and meet its financial commitments.
