The cost of rolling over Ghana’s local currency debt has substantially reduced since December 2024.
Interest rates on Ghana’s six-month treasury bill (182-day bill) have fallen to about 6.5%, and its one-year bill to 10.1% at the end of August 2026, from almost 30% at the end of 2024, S&P Global stated.
The Ministry of Finance imposed a three-year ban on the issuance of new medium- or long-term domestic bonds following the domestic debt restructuring in December 2022.
In 2026, the government started to issue longer tenor bonds, which should help lengthen the maturity profile of Ghana’s local currency debt.
However, S&P said the conflict in the Middle East is likely to erode some of these gains by causing inflation and financing costs to rise and increasing pressure on the cedi.
Last week, the government increased its T-bills uptake reflecting higher financing needs following weeks of below-target acceptances.
This week’s higher issuance target of GH¢5.02 billion further reinforces this view.
However, the GH¢1.53bn raised above last week’s target could temporarily ease funding pressures. Against this backdrop, analyst expect yields to remain broadly stable, as elevated financing needs limit the scope for further declines.
This week’s issuance will cover maturing bills of GH¢3.91 billion.