Ghana’s domestic debt has exceeded its external debt for the first time in several years, highlighting the government’s growing reliance on local borrowing.

Fresh data from the Bank of Ghana shows that domestic debt rose to GH¢323.7 billion in July 2025, accounting for 23.1% of Gross Domestic Product (GDP). In contrast, external debt stood at GH¢305.0 billion, representing 21.8% of GDP.

The Central Bank explained that the surge in Ghana domestic debt resulted from increased borrowing to meet coupon payment obligations on both tendered and untendered bonds. These payments, expected in February and August 2025, prompted the government to raise more funds to build a financial buffer.

Meanwhile, the total public debt at the end of July 2025 reached GH¢628.8 billion, equivalent to 44.9% of GDP. This figure reflects a decline of GH¢98.0 billion from the GH¢726.7 billion (61.78% of GDP) recorded at the end of December 2024.

According to the Bank of Ghana, the reduction was driven by the combined effects of a stronger exchange rate and a slower pace of debt accumulation. These factors helped to lower the country’s overall debt burden by mid-2025.

The shift in the debt composition signals a new phase in Ghana’s fiscal management, with domestic borrowing taking a dominant role in financing government operations.