Ghana government rules out Eurobond issuance from 2027 to 2030

The Government of Ghana has announced that it will not issue new Eurobonds between 2027 and 2030, a move aimed at safeguarding the country’s debt sustainability. This decision is part of a medium-term debt management strategy designed to mitigate the risks associated with foreign-denominated debt and to avoid the refinancing challenges that contributed to recent economic instability. By opting out of the international capital markets during this period, the state intends to consolidate its fiscal position and focus on more stable funding sources.

To compensate for the absence of Eurobond inflows, the government will prioritize domestic financing and the expansion of the local bond market. The strategy also emphasizes the utilization of project loan disbursements from international development partners and a more disciplined approach to debt management. These measures follow the 2022 Domestic Debt Exchange Programme (DDEP), which was implemented to restructure Ghana's debt after a severe crisis restricted the country’s access to global financial markets.

A central objective of this fiscal pivot is to bring Ghana’s public debt-to-GDP ratio below the statutory threshold of 45% by 2034. The fiscal strategy document highlights that maintaining a moratorium on Eurobonds will help stabilize the cedi and reduce the burden of external debt servicing. This long-term target is seen as essential for restoring investor confidence and ensuring that the government has the fiscal space to fund development without returning to unsustainable borrowing levels.

While the strategy focuses on self-reliance and concessional financing, its success will depend on the government’s ability to effectively mobilize internal revenue and maintain a robust domestic financial environment. By moving away from volatile commercial debt on the international market, the administration aims to build a more resilient economy. As the 2027-2030 period approaches, the focus remains on institutionalizing fiscal reforms that will prevent a recurrence of the vulnerabilities that necessitated the recent restructuring.