Ghana's domestic debt stock increased by GH¢57 billion in the first half of 2026. This surge pushed the total domestic debt to GH¢391.115 billion by June 2026. This reflects a significant rise in government reliance on the local debt market.
The increase in domestic borrowing was primarily driven by short-term government securities. These instruments accounted for the largest portion of the additional borrowing. The government used these funds to finance its operations and build buffers for future debt-service obligations. This trend highlights a strategic shift in government financing.
This development fits into Ghana's broader economic narrative following its debt restructuring programme. The country faced restrictions on international capital market access. This made domestic financing critically important. The Bank of Ghana's July 2026 Monetary Policy Report details these shifts. The overall public debt also climbed from GH¢641.111 billion in December 2025 to GH¢719.520 billion by June 2026. This represents 45% of Gross Domestic Product (GDP).
The Bank of Ghana stated that domestic debt increased from GH¢334.115 billion in December 2025. It reached GH¢391.115 billion by June 2026. This represents an increase of about 3.6 percentage points of GDP. The Central Bank noted the government is building buffers to meet future debt-service obligations. It also provides budget support through this borrowing.
Short-term securities rose by GH¢33.432 billion during this period. Medium-term securities increased by GH¢17.249 billion. Long-term securities saw a rise of GH¢6.763 billion. By June, short-term instruments made up 41% of Ghana's domestic debt portfolio. Medium-term securities accounted for 39.1%. Long-term instruments represented 19.7% of the total. This composition shows a clear preference for shorter-dated instruments.
Strong investor demand for 364-day Treasury bills partly explains the growing share of short-term debt. These bills have become a key financing tool for the government. Restrictions on new borrowing during the Domestic Debt Exchange Programme expired in February 2026. This expiration allowed for renewed investor appetite. It also helped reshape the domestic borrowing profile. The increase in medium-term debt was also influenced by exchange-rate movements. These movements affected US dollar-denominated bonds. Additional issuances, known as tap-ins, of existing bonds also contributed. Long-term domestic debt increased through similar tap-ins and the recapitalisation of the Bank of Ghana.
The rising domestic debt pushed Ghana's overall public debt higher. Provisional data from the Bank of Ghana confirms this trend. Domestic debt now accounts for 54.4% of total public debt. External debt represents 45.6%. The Central Bank attributed the overall increase primarily to domestic debt. This strategy aims to strengthen the government's financial position. It also ensures the ability to meet future obligations.
The debt market faces a balancing act. The strong demand for Treasury bills provides essential local financing. However, heavy reliance on short-term instruments requires careful debt maturity management. The government must ensure it can refinance obligations as they become due. This changing composition of the debt stock is a key consideration for investors. Policymakers must balance immediate financing needs with future debt-service pressures. This situation demands continuous monitoring and strategic financial planning. The government's ability to manage this balance will be crucial for economic stability. It will also influence investor confidence in the Ghanaian market.