Interest payments to average a high 20% of government revenue over next 4 years

Ghana's interest payments will average 20% of government revenue over the next four years, according to ratings agency S&P Global Ratings. This is significantly lower than the historical average cost of servicing Ghana's government debt, which reached a peak of 48% in 2021. The decline in interest costs is attributed to debt restructuring, appreciation of the cedi in 2025, and lower local currency financing costs due to falling inflation and interest rates.

The Ghanaian cedi, which fell to GH¢16.47 to US$1 in November 2024, remains 43% stronger than its lowest point. Inflation receded to 3.2% in March 2026, nearing its historical low, and has since risen to 5%. The cost of rolling over Ghana's local currency debt has substantially reduced, with interest rates on six-month treasury bills falling to about 6.5% and one-year bills to 10.1%, from almost 30% at year-end 2024.

Following the domestic debt restructuring in December 2022, the Ministry of Finance imposed a three-year ban on new medium- or long-term domestic bonds. In 2026, the government began issuing longer tenor bonds. However, the conflict in the Middle East could erode some of these gains by causing inflation and financing costs to rise, putting pressure on the cedi.