Ghana faces renewed debt pressure as Eurobond maturities approach

The nation is among several Sub-Saharan African countries facing renewed debt pressure as the region approaches a wave of Eurobond maturities that could strain public finances and test economic resilience, according to the latest Africa’s Pulse report by the World Bank.

The report warns that between 2025 and 2027, countries such as Ghana, South Africa, Kenya, and Senegal will enter a critical period of Eurobond redemptions, heightening concerns about liquidity and debt sustainability across the continent.

For Ghana, which only recently completed both domestic and external debt restructuring exercises, the challenge remains significant.

The country is due to redeem about USD500 million worth of Eurobonds in 2025, equivalent to 0.7 per cent of GDP, with the figure expected to rise sharply to 1.2 per cent of GDP in 2026.

These upcoming repayments come at a time when Ghana is still recovering from a severe debt crisis that forced the government to seek a USD3 billion bailout from the International Monetary Fund (IMF) in 2023.

 Although the debt restructuring provided temporary fiscal relief, the maturing Eurobonds now present new financial stress.

Across Sub-Saharan Africa, 2026 is projected to be the peak year for debt redemption pressures. The World Bank noted that South Africa faces the largest repayments, estimated at around 3 per cent of GDP, while Senegal is expected to settle approximately USD1.1 billion between 2026 and 2028. Kenya has managed to ease some of its refinancing risks by buying back portions of its 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 stated.

It further explained: “South Africa has the largest bond redemptions between 2025 and 2027, measuring 3 per cent of GDP over the period. Senegal faces bond redemptions totalling USD1.1 billion between 2026 and 2028, with approximately one-third maturing in 2026.

After concluding debt restructuring, Ghana now faces a bond redemption of USD500 million (0.7 per cent of GDP) in 2025, spiking to 1.2 per cent of GDP in 2026. From 1.7 per cent 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.

The World Bank also cautioned that these repayments could test the resilience of African economies already grappling with sluggish growth, high interest rates, and constrained access to international capital markets.