Ghana’s public debt stock climbed by GH¢13.1 billion between May and July 2026, rising from GH¢720.8 billion to GH¢733.9 billion, as domestic borrowing recorded a substantial increase over the two month period.
The latest movement in the country’s debt position is contained in the Bank of Ghana’s economic and financial data, which provides an updated picture of the government’s borrowing position and the changing composition of the public debt. The central bank had recorded total public debt of GH¢720.8 billion at the end of May, equivalent to 45.1 percent of Gross Domestic Product.
The trajectory was not uniform throughout the period. Total public debt declined marginally to GH¢719.5 billion in June before rising significantly to GH¢733.9 billion in July, producing an overall increase of GH¢13.1 billion between May and July.
The composition of the debt stock reveals that the principal source of the increase was domestic borrowing. Domestic debt rose from GH¢379.1 billion in May to GH¢396.7 billion in July, representing an increase of GH¢17.6 billion within two months.
By contrast, the external component of Ghana’s debt remained comparatively contained during the period. External debt declined marginally from US$28.9 billion to US$28.8 billion, while its cedi equivalent fell from approximately GH¢341.7 billion to GH¢337.2 billion.
The figures therefore indicate that the expansion in Ghana’s overall public debt during the period was principally associated with the domestic component rather than a significant increase in external indebtedness.
In dollar terms, however, the movement in the overall debt stock was considerably less pronounced. Ghana’s total public debt increased from approximately US$61.5 billion in May to US$63.4 billion in June before easing to US$62.8 billion in July.
The contrasting movements in the cedi and dollar values also underscore the importance of exchange rate movements when assessing Ghana’s debt position. A debt stock denominated in foreign currencies can produce different cedi values depending on prevailing exchange rates, even when the underlying foreign currency debt changes only modestly.
The increase in domestic debt comes against the backdrop of continued government financing activity in the domestic securities market. The Bank of Ghana has reported strong investor participation in government securities, with a July Treasury bill auction attracting GH¢12.37 billion in bids against a government target of GH¢9.49 billion.
The central bank has also indicated that the government’s domestic debt issuance programme has been structured around Treasury bills and medium to long term securities, with the broader objective of managing the maturity profile of public debt and reducing refinancing pressures.
At the same time, the government has continued meeting obligations arising from the Domestic Debt Exchange Programme. The Bank of Ghana’s investor bulletin reported that the government paid GH¢10.82 billion in full to DDEP bondholders on August 18, 2026, bringing cumulative payments to DDEP bondholders since 2025 to GH¢41.36 billion.
The latest increase in the debt stock must therefore be considered alongside the government’s broader fiscal consolidation and debt management efforts rather than viewed solely as an expansion in borrowing.
The Bank of Ghana has previously reported that Ghana’s fiscal performance during the first quarter of 2026 reflected expenditure restraint despite revenue shortfalls, while the central bank has maintained that public debt remains on a sustainable trajectory under the current fiscal framework.
Nevertheless, the renewed increase in domestic indebtedness places renewed attention on the sustainability of government financing requirements. The critical question is whether the recent rise represents a temporary financing requirement associated with specific fiscal obligations or whether it could develop into a more persistent reliance on domestic borrowing.
That distinction matters because sustained domestic borrowing can influence the government’s financing costs, the availability of credit to the private sector and the overall structure of the sovereign debt portfolio.
The Bank of Ghana has noted that the relatively greater role of domestic debt can reduce Ghana’s exposure to foreign currency risks, although it also places greater emphasis on the domestic financial market and the government’s ability to manage refinancing requirements.
The latest figures consequently present a mixed picture. Ghana’s external debt has remained relatively stable, while domestic debt has expanded considerably. At the same time, government securities continue to attract substantial investor demand, suggesting that the domestic market retains significant capacity to absorb government financing requirements.
The sustainability of that position will depend on whether fiscal consolidation, revenue mobilisation and expenditure management can keep future borrowing requirements under control.
For now, the headline figure is clear: Ghana’s public debt stood at GH¢733.9 billion in July 2026, representing a GH¢13.1 billion increase from the May level of GH¢720.8 billion, with the overwhelming movement during the period coming from domestic debt.
