Ghana’s Public Debt Surges to GH¢733.9 Billion as Cedi Depreciation Nears 10%

Ghana’s public debt stock reached GH¢733.9 billion in July 2026, marking a significant GH¢14.4 billion increase from the previous month. According to the Bank of Ghana’s latest Summary of Economic and Financial Data, this figure represents approximately 45.1% of the country’s Gross Domestic Product (GDP). The debt has been on a consistent upward trajectory since January 2026, when it stood at GH¢663.4 billion, driven primarily by intensified domestic borrowing and losses incurred through exchange rate fluctuations under the administration of President John Mahama.

A breakdown of the debt components reveals that domestic debt has climbed to GH¢396.7 billion, accounting for 24.8% of GDP. On the international front, external debt was recorded at US$28.8 billion. Despite the rising debt stock, the country’s fiscal performance showed mixed results; while the overall fiscal balance-to-GDP ratio recorded a cash deficit of 0.6%, the primary balance maintained a surplus of 1.0% of GDP in July 2026. This surplus suggests that government revenue, excluding interest payments, remains sufficient to cover basic expenditure.

Parallel to the debt rise, the Ghana cedi is facing renewed pressure in the foreign exchange market, depreciating by 9.5% against the US dollar to trade at approximately GH¢11.55. This decline marks a reversal from the currency's performance in 2025, when it saw a 29% appreciation. The cedi has also weakened against other major currencies, losing 9.0% against the British pound and 7.3% against the euro. The Bank of Ghana has characterized these movements as standard exchange-rate volatility, though the current trend highlights the currency's sensitivity to shifting market demands.

Economic analysts and international institutions, including the World Bank, attribute the cedi's vulnerability to several key factors. High demand for foreign exchange within the energy sector and significant corporate dividend payments have been identified as primary drivers of the depreciation. Additionally, seasonal demand shifts and corporate cash outflows continue to test the market's resilience. While a trade surplus has provided some foreign exchange inflows, the pressure remains high as the government seeks to manage these seasonal vulnerabilities.

In response to these challenges, the Bank of Ghana has introduced a new foreign-exchange operations framework designed to provide a more structured approach to market interventions. The central bank aims to stabilize the currency and manage volatility more effectively through these streamlined processes. As the administration continues to navigate these fiscal and monetary pressures, the focus remains on maintaining the primary surplus while curbing the pace of debt accumulation to ensure long-term economic stability.