Ghana is set to return to the domestic bond market later this year for the first time since its 2022 debt default, signaling renewed investor confidence and progress in economic recovery.
According to officials from the Ministry of Finance, the government plans to raise GH¢3 billion (approx. $291 million) through the issuance of medium-term notes between September and December 2025. The proceeds will be used to refinance higher-cost treasury bills, as part of efforts to improve debt sustainability. Details of the planned issuance are expected to be outlined in the upcoming mid-year budget review.
The move comes as Ghana’s short-term borrowing costs have dropped to a three-year low, driven by falling inflation and tighter fiscal discipline under President John Mahama. Inflation has declined from a peak of 54% in 2022 to 18.4%, while three-month treasury yields have dropped from over 35% to 14.7%. These positive macroeconomic trends have set the stage for a cautious return to the domestic bond market.
Ghana’s re-engagement with the market is in line with the expectations of the International Monetary Fund (IMF), which granted the country a $3 billion bailout in 2023. The IMF program, set to expire in 2026, anticipated a gradual reintroduction of longer-term debt instruments beginning in 2025. According to an IMF spokesperson, Ghana’s macroeconomic performance has so far met those expectations, supporting a phased extension of the country’s debt maturity profile.
The Bank of Ghana is expected to ease monetary policy in July, amid strong cedi performance, up 43% year-to-date, and cooling inflation. Analysts believe this environment is conducive to renewed domestic bond sales. “The cedi’s strength and disinflation create space for local-currency bond issuance,” noted Samir Gadio, head of Africa strategy at Standard Chartered.
The improving economic outlook has also boosted investor confidence. Ghana’s Eurobonds due in 2029 and 2035 both gained 0.5% this week, extending a three-day rally. Credit ratings agencies have responded positively as well, with Fitch upgrading Ghana to B- and S&P Global raising the country’s rating from selective default to CCC.
The Finance Ministry may reopen some of the restructured domestic bonds at the upcoming sale. These instruments, reissued after the debt restructuring, carry interest rates between 8.35% and 10% for maturities between 2027 and 2038.
Ghana’s debt restructuring, essential to securing the IMF program has seen the government reorganize $13 billion of Eurobonds, $5.1 billion in bilateral loans, and over GHS 203 billion in domestic debt. Negotiations are currently ongoing with 60 international banks to restructure an additional $2.7 billion in commercial loans.
If successful, the bond sale will mark a major milestone in Ghana’s journey out of its debt crisis, helping to lower borrowing costs, lengthen the maturity of its debt stock, and boost confidence in the local economy.
