Ghana’s government is expected to face significant financing challenges from 2024 to 2026 due to limited access to international markets. As a result, the country’s funding during this period is likely to rely heavily on multilateral and bilateral partners, as well as domestic treasury bills, according to a recent report by the World Bank.
The World Bank indicates that Ghana will primarily depend on treasury bills (T-bills), along with support from multilateral and bilateral lenders, until 2027. Specifically, the World Bank is expected to disburse approximately $3 billion to Ghana between 2023 and 2026. This funding will include around $1.5 billion earmarked for project loans, $1.15 billion for budget support, and $400 million for other projects.
In addition to support from the World Bank, the African Development Bank (AfDB) is projected to disburse $338 million to Ghana over the same period. Of this amount, $200 million will be allocated for project loans and grants, while $103 million will be designated for budget support during 2023-2024.
On the domestic front, the World Bank foresees the reintroduction of medium and long-term domestic debt issuance in 2025 as Ghana works to restore its domestic bond market. This move is expected to help the government raise necessary funds to meet its financial obligations.
In the third quarter of 2024, the Ghanaian government plans to borrow GH¢78.441 billion from the domestic money market. Out of this total, GH¢53.807 billion will be used to roll over short-term maturities, while the remaining GH¢24.633 billion will be fresh issuances aimed at meeting the government’s financing requirements. This will be achieved through the regular issuance of 91-day, 182-day, and 364-day treasury bills on a weekly basis. The issuance process will be conducted through a primary auction, with settlement occurring one business day after the transaction date.
The reliance on multilateral and bilateral partners, along with domestic borrowing, highlights the government’s need to navigate a challenging financial landscape over the next few years, as access to international markets remains constrained.
