Ghana to rely on T-bills, multilateral and bilateral lenders for financing until 2027

Due to a lack of access to the international market, the government’s financing during 2024-2026 is expected to be limited to multilateral and bilateral partners and domestic treasury bills.

According to the World Bank, Ghana will rely mainly on T-bills, multilateral and other bilateral lenders for financing, until 2027.

From 2023 to 2026, the World Bank is expected to disburse about $3 billion, including about $1.5 billion for project loans, $1.15 billion for budget support, and $400 million for other projects.

Over the same period, the African Development Bank would disburse $338 million, of which $200 million would be earmarked for project loans and grants and $103 million for budget support during 2023-2024.

On the domestic side, the World Bank foresees a reintroduction of medium and long-term domestic debt issuance in 2025 as the domestic bond market is restored.

The government plans to borrow GH¢78.441 billion from the money market in the third quarter of 2024.

From that, GH¢53.807 billion will be used to rollover short-term maturities, while the remaining fresh issuance of GH¢24.633 billion will be used to meet its financing requirements.

This will be done through the issuance of the 91-day, 182-day, and 364-day bills weekly.

The issuance will be done through the primary auction with settlement being the transaction date plus one business day.