Ghana's debt servicing may escalate after 2027 - Fitch Ratings

Ratings agency Fitch Ratings has projected that Ghana could face higher debt-servicing costs beginning in 2027, when repayments on the Domestic Debt Exchange Programme (DDEP) bonds are set to commence.

According to the international ratings agency, the country’s debt service obligations, excluding short-term debt, are expected to rise from 4.6% of GDP in 2025 to 6.8% in 2027.

Despite the anticipated increase in debt repayments, Fitch believes Ghana’s debt outlook will remain manageable over the medium term.

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This projection also comes as Ghana begins repayments on its second-largest Eurobond issuance, valued at approximately $2.9 billion, which started amortising in January 2026.

The increase in debt-servicing costs is expected to be driven mainly by amortisation payments on the restructured DDEP bonds.

Data from Fitch show that Ghana’s unencumbered international reserves were estimated at $12.3 billion at the end of 2025, while central government deposits stood at 2.4% of GDP.

“The second-largest Eurobond (USD2.9 billion) issued in 2024 started amortising in January 2026, and DDEP bonds will start amortising in 2027, contributing to debt service costs (excluding short-term debt) rising to 6.8% of GDP in 2027, from 4.6% in 2025,” the agency said.

Fitch further indicated that Ghana’s reserve levels are expected to improve steadily in the coming years, strengthening the country’s capacity to meet future debt obligations.

The agency also noted that the government may explore buying back some of the DDEP bonds before maturity as part of efforts to ease repayment pressures.

In addition, Fitch said the gradual reopening of the domestic bond market could create room for authorities to refinance debt more effectively and reduce future financial strain.

According to the ratings agency, these measures, together with stronger liquidity and renewed market access, could help maintain investor confidence despite the expected rise in debt-servicing costs from 2027 onward.

SO/SA

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