Ghana is preparing to re-enter the domestic bond market for the first time since its 2022 debt default, aiming to take advantage of falling borrowing costs and signs of economic stabilization. The move comes as short-term interest rates have dropped to their lowest point in three years, signaling renewed investor confidence and easing financial conditions.
According to a source within the Ministry of Finance, the government intends to raise 3 billion Ghanaian cedis (approximately US$291 million) through medium-term bonds between September and December 2025. The primary goal of the fundraising is to replace more costly short-term treasury bills with cheaper, longer-term debt. The official, who spoke on condition of anonymity due to the sensitivity of the matter, noted that full details will be revealed in the mid-year budget review scheduled for later this month.
This anticipated issuance would mark Ghana’s return to the domestic debt market following a default triggered by unsustainable levels of borrowing under the country’s previous government. That financial crisis effectively shut Ghana out of both local and international credit markets.
Since taking office in January, President John Mahama—elected on a promise to restore economic order—has significantly reduced government borrowing. This shift has contributed to a decline in inflation, which is now only slightly above 18%, and has nearly halved the interest rates on short-term domestic debt – from nearly 30% per annum at the start of the year to between 15.25% and 15.7% , depending on the tenor. This aims in part at creating a more favorable environment for longer-term financing.
