Ghana’s debt troubles are far from over, as the country is faced with bond redemption pressures, including other Sub-Saharan African countries.
The World Bank says many of the Sub-Saharan African countries are bracing for another round of financial strain linked to maturing Eurobonds, raising fresh concerns about liquidity and debt sustainability across Sub-Saharan Africa.
The World Bank Africa’s Pulse report warns that several African nations, including Ghana, South Africa, Kenya, and Senegal, are approaching a critical period between 2025 and 2027 when large chunks of their Eurobond debts fall, putting them under intense refinancing pressure.
For Ghana, which only recently concluded its domestic and external debt restructuring, the clock is already ticking. The country is expected to redeem about US$500 million worth of Eurobonds in 2025, equivalent to 0.7 percent of GDP, with the figure projected to rise sharply to 1.2 percent in 2026.
These payments come at a time when the government is still navigating its path out of a crippling debt crisis that led it to seek a $3 billion IMF bailout in 2023. Although the restructuring offered temporary relief, the looming bond redemptions signal an incoming financial strain.
Across the region, the World Bank notes that 2026 will be the peak year for debt redemption pressures. South Africa faces the largest repayments, which are about 3 percent of GDP, while Senegal must settle roughly US$1.1 billion between 2026 and 2028.
Kenya, on the other hand, has slightly eased its refinancing burden by buying back some maturing bonds.
“Sub-Saharan African countries might face significant refinancing pressures as previously issued Eurobonds near maturity, posing significant challenges to debt sustainability,” the report remarked.
It continued that, “South Africa has the largest bond redemptions between 2025 and 2027, measuring 3 percent of GDP over the period. Senegal faces bond redemptions totaling US$1.1 billion between 2026 and 2028, with approximately one-third maturing in 2026. After concluding debt restructuring, Ghana now faces a bond redemption of US$500 million (0.7 percent of GDP) in 2025, spiking to 1.2 percent of GDP in 2026. From 1.7 percent of GDP in 2024, Kenya’s Eurobond repayment pressure will ease between 2025 and 2027, as the country bought back previously maturing bonds.”
“The region’s redemption schedule reveals liquidity pressures in multiple Sub-Saharan African sovereigns, with peak pressures in 2026 that could have key implications for the risk premium,” it added.
These repayments could test the resilience of African economies already struggling with weak growth, high interest rates, and limited access to international capital markets.
For Ghana, the implications are stark. With restricted access to new Eurobond financing and limited fiscal space, the country will need to rely heavily on concessional loans, domestic revenue mobilization, and strict fiscal discipline to avoid renewed debt distress.
