DDEP Repayments Set to Raise Ghana’s Debt Service Burden From 2027
Ghana’s debt servicing obligations are projected to rise sharply from 2027 as repayments on bonds issued under the Domestic Debt Exchange Programme (DDEP) begin to mature, according to new assessments by Fitch Ratings.
The ratings agency estimates that debt service costs excluding short-term debt will climb to 6.8 per cent of GDP in 2027, up from 4.6 per cent recorded in 2025, reflecting the beginning of amortisation payments on restructured domestic bonds introduced during Ghana’s debt restructuring programme.
The projected increase comes as Ghana continues efforts to stabilise its economy following the 2022 financial crisis and subsequent IMF-backed recovery programme. The country’s second-largest Eurobond issuance, valued at approximately US$2.9bn, also started amortising in January 2026, adding to medium-term repayment pressures.
Despite the expected rise in obligations, Fitch maintains that Ghana’s debt profile remains manageable over the medium term, citing improving foreign reserve buffers, stronger fiscal liquidity and recovering investor confidence. According to the agency, Ghana’s unencumbered international reserves stood at an estimated US$12.3bn at the end of 2025, while central government deposits reached 2.4 per cent of GDP.
Analysts say the country’s improving macroeconomic environment could help cushion the impact of the heavier repayment schedule. Ghana’s benchmark lending indicators have already shown signs of easing, with the Ghana Reference Rate declining to 10.03 per cent in May 2026 from 14.58 per cent in February, reflecting improving monetary conditions.
Fitch also suggested that Ghana may begin selectively buying back portions of the DDEP bonds ahead of maturity if market conditions remain favourable. The gradual reopening of the domestic bond market is expected to give authorities more flexibility to refinance obligations strategically and smooth repayment risks over time.
The DDEP, launched in late 2022 as part of Ghana’s debt restructuring efforts, required domestic bondholders to exchange existing securities for new longer-dated instruments with reduced coupon payments. The programme formed a central component of Ghana’s negotiations with the IMF and external creditors aimed at restoring debt sustainability.
While the latest outlook points to increasing repayment pressures from 2027 onward, improving reserves, renewed access to financing markets and tighter fiscal management are expected to play a key role in maintaining macroeconomic stability and sustaining investor confidence in the years ahead.
