Dr Cassiel Ato Forson, Minister of Finance
Ghana is preparing to re-enter the domestic bond market for the first time since its 2022 debt default, according to a Bloomberg report.
The move by the government aims to capitalise on falling borrowing costs and signs of economic stabilisation to restructure its debt profile.
According to Bloomberg, short-term interest rates in Ghana have dropped to their lowest levels in three years, signalling improved investor confidence and more favourable financial conditions.
Government sources familiar with the plan told Bloomberg that Ghana aims to raise GH¢3 billion (approximately $291 million) through the issuance of medium-term bonds between September and December 2025.
The primary objective of the move is to replace expensive short-term treasury bills with more affordable, longer-term debt instruments.
The official, who requested anonymity due to the sensitivity of the discussions, indicated that full details of the issuance strategy will be disclosed in the upcoming mid-year budget review next month.
Ghana’s anticipated return to the domestic debt market follows its historic default in 2022, which was triggered by unsustainable borrowing levels under the previous administration.
The debt crisis effectively locked the country out of both local and international credit markets.
However, since taking office in January 2025, President John Dramani Mahama, has championed Ghana’s economic recovery plan on a platform of fiscal responsibility which has significantly curtailed government borrowing.
According to Bloomberg, this policy shift has contributed to a steady decline in inflation and falling interest rates on short-term domestic debt, creating a more conducive environment for longer-term borrowing.
Meanwhile, the government’s planned bond issuance is expected to mark a cautious but strategic step toward rebuilding its credibility with investors and restoring access to local capital markets.
In 2023, the International Monetary Fund extended a $3 billion financial bailout package to Ghana which is set to expire in 2026.
According to an IMF spokesperson, the program was structured with the expectation that Ghana would gradually regain access to the domestic debt market, with plans to begin issuing longer-term bonds starting in 2025.
“To date, macroeconomic and financial developments have aligned with these expectations. With progress in stabilising the economy and bolstering confidence, this will facilitate a gradual extension of government securities’ maturity profile over time,” the IMF spokesperson is quoted to have said by Bloomberg.
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