Ghana government to issue four-year bond for future debt payments

The Ghana government plans to issue a four-year Treasury bond on September 1, 2026, to raise funds from the domestic market and prepare for upcoming debt repayments. The bond will mature in 2030, with a settlement date of September 7. This move follows an improving fiscal position, although government revenue remains below targets.

In the first half of 2026, total revenue and grants reached GH¢99.4 billion, approximately GH¢11 billion below the budgeted GH¢110.4 billion. Tax revenue fell short by 10.1%. Government spending, however, was lower than anticipated, amounting to GH¢109.4 billion, or 24.9% below the budget target of GH¢145.7 billion. As a result, the fiscal deficit narrowed to GH¢10 billion, or 0.6% of GDP, compared to GH¢21.4 billion, or 1.5% of GDP, the previous year.

Additionally, the government recorded a primary surplus of GH¢11.5 billion. Public debt increased from GH¢641.1 billion at the end of 2025 to GH¢719.5 billion at the end of June 2026, primarily due to domestic borrowing, raising domestic debt to GH¢391.1 billion. The Bank of Ghana attributes this increase to the strategy of building financial buffers for future debt service payments, especially through bonds issued under the Domestic Debt Exchange Programme (DDEP) maturing in 2027 and 2028.

The new four-year bond aims to support this strategy and take advantage of lower borrowing costs in the domestic market. Interest rates have declined recently, with the Monetary Policy Rate at 14% and the 364-day Treasury bill rate at 11.3%. The country's economy has shown resilience, with a GDP growth of 6.4% in Q1 2026, low inflation of 5.3% in June, a trade surplus of $8.8 billion in the first half of 2026, and gross international reserves of $12.9 billion, sufficient to cover five months of imports.