Ghana’s domestic debt stock expanded substantially during the first six months of 2026, rising by approximately GH¢57.4 billion as the government intensified its reliance on the local financial market to finance public obligations and establish buffers for forthcoming debt repayments.
Data contained in the Bank of Ghana’s July 2026 Monetary Policy Report indicate that domestic debt increased from GH¢333.76 billion in December 2025 to GH¢391.12 billion by the end of June 2026, representing an increase of about GH¢57.36 billion and lifting the domestic component to roughly 24.5 percent of Gross Domestic Product.
The expansion was driven across the principal maturity categories, although short term securities accounted for the largest share of the increase. Short term instruments rose by GH¢33.432 billion, while medium term securities expanded by GH¢17.249 billion and long term obligations increased by GH¢6.763 billion.
The Bank of Ghana explained that the renewed prominence of short term borrowing was partly associated with strong investor demand for 364 day Treasury bills. Following the expiration of restrictions imposed under the Domestic Debt Exchange Programme, the government also regained greater access to longer maturity domestic securities, enabling it to diversify its financing beyond the Treasury bill market.
For several years, Treasury bills had effectively become the government’s principal domestic financing instrument after the Domestic Debt Exchange Programme curtailed access to conventional bond issuance. The subsequent reopening of the domestic bond market therefore marked an important transition in Ghana’s debt management strategy, with authorities seeking to lengthen the maturity profile of public obligations and reduce excessive dependence on short term refinancing.
The composition of the domestic debt stock reflects this changing financing structure. Short term securities accounted for 41.0 percent of domestic debt at the end of June, while medium term instruments represented 39.1 percent and long term obligations constituted the remaining 19.7 percent. The Bank of Ghana has indicated that the government is taking advantage of comparatively lower domestic borrowing costs while simultaneously attempting to strengthen its capacity to meet significant debt service obligations in the years ahead.
Currency movements also contributed to the expansion of some domestic obligations. According to the central bank, the depreciation of the Ghana cedi increased the local currency value of United States dollar denominated bonds, while the government’s decision to reopen existing securities through additional tap issuances further increased medium and long term debt. Long term liabilities were also affected by tap issuances and the recapitalisation of the Bank of Ghana.
The increase in domestic borrowing must, however, be viewed within the government’s broader debt management programme. Authorities are building financial buffers to prepare for substantial debt service requirements, particularly obligations arising from bonds issued under the Domestic Debt Exchange Programme that are scheduled to mature in 2027 and 2028. The government has consequently returned to the domestic bond market as part of a strategy aimed at smoothing future repayment pressures rather than relying solely on short term borrowing when those obligations fall due.
Ghana’s overall public debt position also deteriorated in nominal terms during the review period. The provisional public debt stock increased from GH¢641.11 billion at the end of December 2025 to GH¢719.52 billion by June 2026, representing an increase of about GH¢78.41 billion. Despite the substantial rise in the nominal debt stock, the debt to GDP ratio moved only marginally from 44.7 percent to 45.0 percent over the same period.
Domestic obligations accounted for 54.4 percent of the total public debt by the end of June, making them the larger component of Ghana’s overall indebtedness, while external liabilities represented the remaining 45.6 percent. External debt expressed in cedi terms also increased, although the Bank of Ghana attributed part of that movement to exchange rate effects because the cedi value of foreign currency obligations rises when the local currency depreciates.
The latest figures come as the government continues to rebuild Ghana’s domestic capital market following the debt restructuring period. The Bank of Ghana’s issuance calendar for March to June 2026 explicitly envisaged a gradual shift away from excessive reliance on Treasury bills towards medium and long term securities, with the broader objective of lengthening the maturity structure of government debt and strengthening the functioning of the domestic capital market.
The government’s renewed appetite for domestic financing has also coincided with strong investor participation in Treasury securities. In a June 2026 auction, investors submitted bids worth about GH¢6.09 billion against a government target of GH¢5.44 billion, allowing the authorities to accept approximately GH¢5.83 billion. The strong demand demonstrated continued investor appetite for government securities even as authorities expanded domestic borrowing.
More recently, the government announced additional bond issuance as part of efforts to accumulate resources ahead of future repayment obligations. The Bank of Ghana has also published fresh issuance arrangements for government securities, including a four year Treasury bond in September 2026 and a seven year Treasury bond announcement, underscoring the authorities’ continued attempt to deepen the domestic debt market and extend the maturity structure of public borrowing.
The latest debt figures therefore present a mixed fiscal picture. On one hand, Ghana has regained access to its domestic bond market and is benefiting from stronger investor demand and lower borrowing costs. On the other hand, the rapid rise in domestic obligations means that debt management will remain a critical component of fiscal policy, particularly as the government prepares for sizeable repayments arising from the earlier restructuring programme.
The central challenge for policymakers will consequently be to ensure that renewed domestic borrowing supports sustainable fiscal management rather than recreating the short maturity pressures that contributed to Ghana’s previous debt difficulties. With public debt now standing at GH¢719.52 billion, maintaining fiscal discipline while building adequate repayment buffers will remain essential to preserving the gains made under the country’s ongoing debt restructuring programme.
