Domestic Debt Surpasses External Debt for the First Time in Years
Ghana’s domestic debt stock has exceeded external debt for the first time in several years, reflecting the government’s growing dependence on the local debt market to meet its financing needs.
Data from the Bank of Ghana’s September 2025 Summary of Economic and Financial Data show that domestic debt stood at GH¢323.7 billion, representing 23.1% of Gross Domestic Product (GDP), while external debt amounted to GH¢305.0 billion, equivalent to 21.8% of GDP.
The Central Bank attributed the increase in domestic borrowings to expected coupon payment obligations of government on both tendered and untendered bonds in February and August 2025, necessitating higher borrowings to build buffers.
At end-July 2025, the country’s total public debt stood at GH¢628.8 billion ($59.9 billion), representing 44.9% of GDP. This reflects a decline of GH¢98 billion compared to GH¢726.7 billion (61.8% of GDP) recorded at end-December 2024, driven largely by the combined effects of cedi appreciation and a slowdown in debt accumulation.
However, the July 2025 figure also indicates a GH¢15.8 billion rise in the public debt stock from GH¢613 billion recorded in June 2025.
External debt remained relatively stable at $29.0 billion (21.8% of GDP), while domestic debt increased from GH¢312.7 billion in June to GH¢323.7 billion in July, underscoring rising pressure from local borrowings.
On the fiscal front, the government recorded a budget deficit of 1.4% of GDP in July 2025, while the primary balance showed a surplus of 0.7%.
The latest data highlight domestic borrowings emerging as the key driver of Ghana’s public debt trajectory despite recent exchange rate gains.
