Ghana’s domestic debt rose to GH¢333.8 billion in December 2025 from GH¢309.8 billion a year earlier, according to the latest report by the Bank of Ghana.
The increase, driven largely by short-term instruments, reflects government’s strategy to build financial buffers to meet its obligations, even as overall debt sustainability indicators improved.
While external debt increased in foreign currency terms due to new loan disbursements, it declined significantly in local currency terms. The stock fell from GH¢416.8 billion in December 2024 to GH¢307.2 billion in 2025.
The central bank attributed this drop to the strong performance of the Ghana cedi and principal repayments on Eurobonds and multilateral loans, which reduced the local currency value of external obligations.
Overall Debt Ratio Improves
Provisional data shows total public debt, including central government and guaranteed obligations, declined to GH¢640.99 billion, representing 45.3% of GDP, down from 61.8% in 2024.
Domestic debt accounted for 23.6% of GDP, while external debt stood at 21.7%, highlighting a broad-based improvement in debt metrics.
According to the Bank of Ghana, the reduction in the debt-to-GDP ratio was driven by a combination of factors, including currency appreciation, increased amortisation, and prudent borrowing practices.
The report also pointed to reduced borrowing costs and stronger fiscal discipline, supported by a higher primary surplus, as key contributors to Ghana’s improving debt outlook.
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