The Ghanaian government is expected to reduce its reliance on the Treasury bill market for funding in 2025, according to a new report by Databank Research.
The financial services firm forecasts government borrowing will decrease to approximately GH₵200 billion, down from an estimated GH₵220 billion in 2024.
This reduction represents a slight decrease in the average weekly borrowing, which will likely fall to GH₵3.9 billion in 2025, compared to GH₵4.2 billion per week in 2024. Databank attributes this decline to improved access to alternative funding sources and a strategic shift toward long-term securities.
The pivot towards long-term instruments is seen as part of Ghana’s broader efforts to stabilize its economy and reduce reliance on short-term debt, with access to international financial markets enhancing the government’s flexibility to explore sustainable financing options.
However, the report indicates that the transition to long-term securities will likely take full effect after the first quarter of 2025. In the meantime, the government is expected to continue leaning on short-term funding to manage maturing debts during the latter half of 2024.
These shifts in Ghana’s borrowing strategy are seen as a reflection of the ongoing recovery and restructuring efforts in the country’s economy.
