Ghana’s domestic debt rose slightly from GH¢309.8 billion to GH¢333.8 billion by December 2025, even though its share relative to GDP declined.
This increase is linked to the government’s strategy of borrowing to create financial buffers and meet its obligations.
According to the Bank of Ghana’s March 2026 Monetary Policy Report, most of the rise in domestic debt came from short-term borrowing instruments.
External debt, on the other hand, increased when measured in foreign currency due to new loan disbursements.
However, when converted into local currency, it fell significantly from GH¢416.8 billion in December 2024 to GH¢307.2 billion in December 2025.
This drop was largely driven by the strong performance of the cedi and repayments of Eurobonds and multilateral loans, reducing the local currency value of external debt by GH¢125.2 billion (about 9% of GDP).
Overall, Ghana’s total public debt (including central government and guaranteed debt) declined to GH¢640.99 billion (45.3% of GDP) by the end of December 2025, down from GH¢726.7 billion (61.8% of GDP) a year earlier.
Of this total, external debt accounted for GH¢307.2 billion (21.7% of GDP), while domestic debt made up GH¢333.8 billion (23.6% of GDP).
The Bank of Ghana attributes the overall decline in debt levels to several factors, including the appreciation of the cedi, increased debt repayments, more disciplined borrowing, lower borrowing costs, and improved fiscal management, which contributed to a higher primary surplus.
