Ghana Sovereign Debt Market: Overview, 2025 Edition
By Impala Market Team
Executive Snapshot
Total Public Debt: GHS 610 billion (~USD 50 billion)
Debt-to-GDP Ratio: ~84%
Debt Composition: ~57% domestic, ~43% external
Outlook: Ghana’s debt market remains under restructuring following a domestic debt exchange and ongoing external debt negotiations. The local bond market is stabilizing under an IMF-supported program.
1. Debt Market Structure
1.1 Total Public Debt Profile
Domestic Debt: GHS 350 billion
External Debt: GHS 260 billion
Debt Service-to-Revenue Ratio: Above 70% pre-restructuring
Source: Ministry of Finance Ghana
1.2 Legal & Institutional Framework
Debt managed by the Ministry of Finance (MoF)
Central Bank of Ghana (BoG) manages T-bill auctions and monetary policy
Legal framework under Public Financial Management Act and Debt Management Strategy
2. Domestic Debt Instruments
Instrument Currency Maturity Frequency Notes Treasury Bills GHS 91, 182, 364 days Weekly Discounted instruments Treasury Bonds GHS 2–15 years Monthly Fixed-rate, semiannual coupons Domestic Debt Exchange Bonds GHS Reprofiled N/A Lower coupons, extended tenors
Recent restructuring impacted pricing, investor sentiment, and participation
Yield curve being rebuilt through new auctions
3. External Sovereign Debt
Eurobonds: Defaulted in 2022–2023; restructuring ongoing
Multilateral: IMF, World Bank, AfDB
Bilateral: China, Paris Club
Current external debt discussions involve Common Framework coordination
4. Investor Base
Domestic:
Banks, Pension Funds, SSNIT, Insurance Companies
Participation declined post-restructuring but recovering
Foreign:
Previously large holders of local bonds (via GSE); now limited due to FX and restructuring risk
Eurobond holders engaging in debt talks
5. Secondary and OTC Market
Bonds listed and traded on the Ghana Fixed Income Market (GFIM)
OTC trading dominant for institutional investors
Yields and prices published by BoG and GSE – gse.com.gh
6. Recent Trends
T-bill yields exceed 25% for 91–364-day maturities
Treasury bond yields recovering post-DDEP (Domestic Debt Exchange Program)
IMF ECF program (USD 3 billion) guiding fiscal consolidation and reforms
Interest rate volatility remains elevated
7. Risk Assessment
Debt Sustainability: High risk; under restructuring (IMF DSA 2024)
Liquidity Risk: Elevated, especially for long-term instruments
Market Confidence: Rebuilding slowly, aided by fiscal discipline and donor support
8. Opportunities & Reforms
Strengthen the Ghana Fixed Income Market for greater transparency
Expand mobile access to Treasury products
Improve pricing benchmarks post-restructuring
Continue external debt negotiations under the Common Framework
9. Annexes
Credit Ratings:
Moody’s: Ca (Stable)
S&P: SD (Selective Default)
Fitch: RD (Restricted Default)
For Investors & Researchers
Ghana’s sovereign debt market is in a transition phase post-default, with opportunities emerging for those tracking restructuring outcomes and recovery of domestic issuance. IMF backing and domestic policy reforms are key anchors.