…As Gov’t Turns to Local Market
Ghana’s domestic debt stock rose by GH¢57 billion in the first half of 2026, reflecting increased government reliance on the local debt market to finance its operations and build buffers for future debt-service obligations.
The Bank of Ghana (BoG) said domestic debt increased from GH¢334.115 billion in December 2025 to GH¢391.115 billion by June 2026, equivalent to an increase of about 3.6 percentage points of Gross Domestic Product (GDP).
The rise was driven largely by short-term government securities, which accounted for the biggest portion of the additional borrowing during the period.
According to the Central Bank’s July 2026 Monetary Policy Report, short-term securities increased by GH¢33.432 billion, while medium-term securities rose by GH¢17.249 billion and long-term securities increased by GH¢6.763 billion.
As a result, short-term instruments accounted for 41% of Ghana’s domestic debt portfolio at the end of June, followed by medium-term securities at 39.1% and long-term instruments at 19.7%.
Strong demand for Treasury bills
The BoG said the growing share of short-term debt was partly linked to strong investor demand for 364-day Treasury bills, which have become an important financing instrument for government.
Short-term bills had been the main source of financing for government operations until February 2026, when restrictions on new borrowing imposed during the Domestic Debt Exchange Programme expired.
The restrictions had effectively limited Ghana’s access to international capital markets during the debt restructuring period, increasing the importance of domestic financing.
With the restrictions lifted, however, investor appetite for longer-dated Treasury instruments and other securities has helped reshape the domestic borrowing profile.
The Central Bank noted that the increase in medium-term debt was also influenced by exchange-rate movements, which affected US dollar-denominated bonds, as well as additional issuances, or tap-ins, of existing bonds.
Long-term domestic debt, meanwhile, increased through tap-ins of existing long-term securities and the recapitalisation of the Bank of Ghana.
Public debt crosses GH¢719bn
The increase in domestic borrowing also pushed Ghana’s overall public debt higher during the first six months of the year.
Provisional data from the BoG show that total public debt increased from GH¢641.111 billion in December 2025 to GH¢719.520 billion in June 2026.
As a proportion of GDP, the public debt stock moved from 44.7% to 45% over the period.
Domestic debt accounted for 54.4% of total public debt at the end of June, while external debt represented 45.6%.
The Central Bank attributed the overall increase primarily to domestic debt, explaining that the government was building buffers to meet future debt-service obligations and provide budget support.
External debt, when converted into cedis, recorded a relatively modest increase during the period, although exchange-rate pressures contributed to the movement.
Debt market faces balancing act
The latest figures highlight the increasing importance of Ghana’s domestic capital market in meeting the government’s financing needs following the country’s debt restructuring programme.
The strong demand for 364-day Treasury bills provides government with access to local financing, but the heavier reliance on short-term instruments also places greater emphasis on debt maturity management and the ability to refinance obligations as they fall due.
The changing composition of the debt stock will therefore remain a key consideration for investors and policymakers as government balances immediate financing requirements with efforts to manage future debt-service pressures.
