Gov’t Targets GH¢15.2bn in Domestic Borrowing to Reshape Debt Strategy

Government is set to raise GH¢15.2 billion from the domestic market over a three-month period as part of a strategic effort to rebalance its debt structure and strengthen long-term fiscal sustainability.

According to an issuance calendar released by the Bank of Ghana, the funds will be mobilised between March and June 2026 through a combination of treasury bills and bonds.

The programme will rely on the regular issuance of 91-day, 182-day and 364-day treasury bills, alongside a renewed focus on medium- to long-term bonds following the easing of restrictions under the Domestic Debt Exchange Programme (DDEP).

Officials say the approach reflects a deliberate shift in borrowing strategy, aimed at reducing the country’s heavy dependence on short-term instruments while building a more stable and predictable debt profile.

The funds raised will be used to finance the 2026 budget and roll over maturing obligations, a key component of Ghana’s ongoing post-restructuring debt management efforts.

In recent years, the dominance of short-term treasury bills has exposed the country to frequent refinancing pressures and high borrowing costs. By extending the maturity of its debt through longer-term bonds, government is seeking to ease rollover risks and create a more manageable repayment horizon.

The move is also expected to deepen Ghana’s domestic bond market by improving liquidity, strengthening pricing benchmarks, and boosting investor confidence.

The central bank noted that the issuance calendar is designed to enhance transparency and provide clear guidance to investors, allowing for better planning and capital allocation.

While the strategy is seen as a positive step toward restoring credibility in public debt management, analysts caution that sustained domestic borrowing could still pose risks if not carefully managed.

High interest rates may limit private sector access to credit, potentially affecting business growth and broader economic expansion.

Experts further stress that the long-term success of the programme will depend on how effectively the borrowed funds are utilised. Investments in productive sectors such as infrastructure, agriculture, and industry could drive economic growth and improve revenue generation.

However, continued reliance on borrowing to finance recurrent expenditure could undermine fiscal stability and reverse gains made under Ghana’s debt restructuring programme.

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Government maintains that the borrowing plan aligns with the Net Domestic Financing targets outlined in the 2026 Budget Statement and forms part of broader efforts to restore discipline and sustainability in public finances.

The renewed emphasis on longer-term bonds is expected to play a critical role in anchoring Ghana’s transition toward a more resilient and sustainable debt framework.