Former Finance Minister Dr Mohammed Amin Adam has urged the government to publish monthly details of Ghana’s Sinking Fund as the country prepares for major repayments under the Domestic Debt Exchange Programme (DDEP) in 2027 and 2028.
According to the latest analysis, the fund’s balance stood at GH¢15.6 billion on 22 July 2026, with a year‑end projection of GH¢30 billion. The DDEP will require principal repayments of GH¢58 billion in 2027 and GH¢53 billion in 2028, totalling GH¢111 billion over the two years.
Dr Amin Adam argued that prefunding the Sinking Fund could ease the repayment burden, but warned that borrowing to build the fund could add costs if the fund’s returns fall below the interest paid on the debt used to finance it.
“Prefunding is prudent, but it means part of the 2026 increase in debt may be cash held for future redemptions rather than deficit financing,” he wrote.
He recommended that the government publish the fund’s monthly inflows, including the share derived from the allocation of 7 % of non‑oil tax revenue and any bond proceeds. The reports should also show investments, returns, the proportion of the fund financed through borrowing and planned drawdowns.
Such disclosure would enable the public to assess whether the fund is adequately preparing for the repayment cliff and whether its resources are being managed cost‑effectively.
Ghana will need to monitor the Sinking Fund closely as it navigates the upcoming debt repayment schedule, with the public and investors alike keen to see how the fund’s performance aligns with the country’s fiscal strategy.
