Ghana plans to raise GH¢15.38 billion in net domestic financing between October and December 2026, as the government prepares to issue Treasury bills and bonds while planning buybacks of securities issued under the Domestic Debt Exchange Programme (DDEP).
The fourth-quarter borrowing calendar is expected to help the government meet its financing needs, manage maturing debt and reduce pressure from repayments due in the coming years. It will also test investor confidence in Ghana’s domestic debt market as authorities seek to strengthen public finances following the debt restructuring exercise.
According to the government, the GH¢15.38 billion target is based on projected domestic debt maturities and the remaining net domestic financing requirement outlined in the 2026 Mid-Year Fiscal Policy Review. The figure represents the additional financing needed after accounting for maturing obligations, rather than the total value of securities the government may issue during the period.
This means the overall volume of securities sold could be higher as the government raises funds to meet its financing target while refinancing existing debt.
Under the programme, 91-day, 182-day and 364-day Treasury bills will be issued through weekly primary auctions, with settlement scheduled for one working day after transactions. Medium- and long-term securities will settle after two working days, with their issuance depending on prevailing market conditions.
The borrowing strategy reflects the government’s need to balance immediate financing requirements with efforts to extend the maturity of domestic debt. Treasury bills provide a regular source of funding and are familiar to banks and other investors, but their short repayment periods require the government to return frequently to the market.
Heavy reliance on short-term borrowing can increase refinancing risks, particularly when interest rates rise or investor demand weakens. Issuing longer-term bonds, where market conditions permit, could help spread repayment obligations over a longer period and reduce the frequency of refinancing.
The decision to make medium- and long-term issuance dependent on market conditions suggests the government intends to respond to investor demand rather than commit to borrowing at any cost. The level of demand for these securities and the interest rates investors require will be important indicators of confidence in the economy and the government’s fiscal management.
A key component of the fourth-quarter programme is the planned buyback of bonds issued under the DDEP that are due in 2027. The exercise is intended to help manage upcoming repayment obligations and reduce pressure from concentrated maturities.
The buyback could give the government greater flexibility in managing its debt repayment schedule. However, its effectiveness will depend on the volume of bonds purchased, the price paid and how the transaction is financed. Buying back existing debt requires funds and does not automatically reduce the government’s overall liabilities.
The government has also linked the planned operation to the full operationalisation of the sinking fund, which is expected to support the gradual accumulation of resources for future debt repayments.
A properly funded and transparently managed sinking fund could help the government prepare for maturing obligations instead of relying heavily on new borrowing when payments fall due. Its effectiveness will depend on regular contributions, clear rules governing withdrawals and reliable reporting on its balances and operations.
The borrowing programme also has implications for businesses and the wider financial sector. Government securities play an important role in determining interest rates across the economy. When Treasury bills and bonds offer attractive returns, banks and other investors may favour them over lending to businesses, potentially limiting access to credit for private-sector activities.
On the other hand, stronger demand for longer-term government securities and more predictable borrowing conditions could help establish reliable benchmark interest rates for corporate bonds and other forms of long-term financing.
The success of the fourth-quarter programme will therefore depend on more than whether the government raises the targeted GH¢15.38 billion. The cost of borrowing, the maturity structure of the securities issued and the effect on liquidity will also matter.
Strong demand at auctions could indicate improving confidence in Ghana’s economic outlook and the government’s ability to meet its obligations. Weak demand, higher yield demands from investors or repeated rejection of bids could point to continued concerns about risk and the cost of lending to the government.
Transparency will also be important as the authorities seek to rebuild trust among domestic investors following the DDEP. Clear auction schedules, consistent settlement arrangements, accurate debt information and timely communication about changes to planned transactions will help investors make informed decisions.
Although the fourth-quarter calendar outlines the government’s broad financing plans, it does not provide a detailed weekly breakdown of expected bond issuance or the size and timing of the proposed buybacks. Further announcements will be needed to clarify how the transactions will be implemented.
The final quarter of 2026 will require the government to finance its budget, refinance maturing securities, manage the 2027 DDEP repayment profile and limit pressure on domestic liquidity.
How the programme is executed will help determine whether Ghana can move towards a more sustainable domestic borrowing strategy, with less dependence on short-term securities and greater capacity to manage debt repayments over time.
