Ghana’s interest payments are projected to average a high 20% of government revenue over the next four years, according to S&P Global Ratings. This marks a significant decline from the peak of almost 48% seen in 2021, the agency noted.
The reduction is attributed to several factors, including debt restructuring, the cedi’s exchange rate appreciation in 2025, and lower local‑currency financing costs as inflation and interest rates fell to multiyear lows. Although the cedi has weakened by 9.2% since the start of 2026, it remains 43% stronger than its lowest point.
In November 2024, the cedi traded at GH¢16.47 to the US$1. Inflation eased to 3.2% in March 2026, the lowest on record, before rising modestly to 5% by August 2026. Over 2022‑2024, inflation averaged 31% per year, partly due to the Bank of Ghana’s direct financing of the government during the debt crisis.
S&P highlighted that the cost of rolling over local‑currency debt has dropped sharply. Six‑month treasury bill rates fell to about 6.5%, and one‑year bills to 10.1%, from nearly 30% at the end of 2024.
The Ministry of Finance had banned the issuance of new medium‑ or long‑term domestic bonds for three years after the December 2022 debt restructuring. In 2026, the government resumed issuing longer‑tenor bonds, which S&P said will help extend the maturity profile of local‑currency debt.
However, the agency warned that the Middle East conflict could erode some gains by pushing inflation and financing costs higher and exerting pressure on the cedi.
Observers will watch how these dynamics affect Ghana’s fiscal balance and debt sustainability in the coming years.
