Ghana to Pay GH¢150.3 Billion in Domestic Debt Service Over Four Years

Ghana is projected to spend approximately GH¢150.3 billion on domestic debt servicing over the next four years, an amount equivalent to 11.6% of the country’s Gross Domestic Product (GDP).

A significant portion of this—GH¢57.6 billion in 2027 and GH¢52.5 billion in 2028—accounts for 73.3% of the total debt service obligations.

Presenting the 2025 Budget in Parliament, Finance Minister Dr. Cassiel Ato Forson attributed the sharp rise in domestic debt payments to the Domestic Debt Exchange Programme. He described the financial obligations in 2027 and 2028 as major economic challenges.

“These humps are cancerous and pose significant risks to the economy, but we shall fix it!” he assured.

Dr. Forson also highlighted Ghana’s short-term debt obligations, noting that key payments include GH¢9.9 billion in February, GH¢6.2 billion in July, and GH¢10.1 billion in August.

Additionally, he pointed out that the country faces GH¢111.1 billion in short-term treasury bill maturities, requiring weekly rollovers and further straining cash flow and liquidity.

On the external front, Ghana must also meet US$8.7 billion in debt service obligations over the next four years, representing 10.9% of GDP. Of this amount, US$2.5 billion is due in 2027, followed by US$2.4 billion in 2028, aligning with the peak domestic debt payments.

Dr. Forson criticized the previous administration’s debt restructuring, stating that it placed a heavy burden on 2027 and 2028 without creating buffers to ease the financial strain. Despite these challenges, he reaffirmed the government’s commitment to addressing the looming debt crisis.