Domestic overtakes Ghana’s external debt first time in Years
Ghana’s domestic debt has surpassed its external debt for the first time in several years, reflecting a significant shift in the government’s borrowing strategy and the structure of public financing.
According to the latest Bank of Ghana (BoG) data, as of July 2025, Ghana’s domestic debt stood at GHS323.7 billion, representing 23.1 per cent of Gross Domestic Product (GDP).
In comparison, external debt amounted to GHS305.0 billion, or 21.8 per cent of GDP.
The Central Bank attributed the surge in domestic borrowing to anticipated coupon payment obligations on both tendered and untendered bonds during February and August 2025. These obligations, it noted, compelled the government to raise additional funds on the domestic market to build fiscal buffers and meet upcoming repayments.
Overall, the country’s total public debt stock at the end of July 2025 stood at GHS628.8 billion, equivalent to 44.9 per cent of GDP. This represents a reduction of GHS98.0 billion from the GHS726.7 billion (61.78 per cent of GDP) recorded at the end of December 2024.
According to the BoG, the fall in total public debt reflects the combined effects of cedi appreciation and a slower pace of debt accumulation, resulting in a moderation of the debt stock within the first seven months of 2025.
Economists, however, caution that the growing reliance on the domestic market could create liquidity pressures and crowding-out effects on private sector credit. Increased government demand for local funds may push interest rates higher, making borrowing more expensive for businesses.
