Gov’t to Borrow GHS 200 Billion from T-Bill Market in 2025, GHS 20 Billion Below 2024 Levels
The government of Ghana plans to borrow approximately GH¢200 billion from the treasury market in 2025, a reduction from the estimated GH¢220 billion borrowed in 2024.
This translates to an average weekly borrowing of GH¢3.9 billion in 2025, compared to GH¢4.2 billion in 2024.
Shift Towards Long-Term Financing
According to Databank Research, with improving access to international funding and signs of sustained macroeconomic recovery, the government is expected to pivot towards longer-term financing options.
However, this shift may likely begin after the first quarter of 2025 due to treasury refinancing needs and maturities from high borrowings in the second half of 2024.
Fixed Income Market Recovery by Mid-2025
Databank Research forecasts a strong rebound in the fixed income market by mid-2025.
Easing inflation and policy measures to lower treasury bill yields are expected to drive the recovery.
While inflation is anticipated to ease and monetary policy to become more dovish, investor reaction to yield compression may delay until mid-2025.
Databank noted that significant policy actions to reduce sovereign borrowing costs, which stood at 27% in November 2024, will play a critical role in this yield decline.
Reducing Reliance on Money Market Funding
The government has hinted at reducing its reliance on money market funding and issuing longer-dated securities.
Improved access to alternative funding sources is expected to moderate the Treasury’s demand for money market funding in 2025, creating room to trim high treasury bill yields.
“With a strategic pivot towards long-term securities and ample decline in demand for money market funding, we expect the treasury to find space to reduce high yields significantly,” Databank stated.
These developments highlight a strategic shift in the government’s borrowing approach as it seeks to balance short-term funding needs with sustainable long-term financing options.
