Ghana’s debt servicing costs to rise from 2027 as DDEP repayments begin — Fitch
Ghana is expected to experience a sharp increase in debt servicing costs from 2027 as repayment obligations on Domestic Debt Exchange Programme (DDEP) bonds begin to fall due, according to Fitch Ratings.
The rating agency projects that debt service costs, excluding short-term obligations, will rise to 6.8% of Gross Domestic Product (GDP) in 2027, up from 4.6% recorded in 2025. The increase will be driven mainly by the commencement of amortisation payments on restructured DDEP bonds.
The development comes shortly after Ghana’s second-largest Eurobond issuance, valued at about US$2.9 billion, began amortising in January 2026.
Despite the projected rise in repayments, Fitch Ratings maintains that Ghana’s debt position remains manageable over the medium term, citing improvements in reserve accumulation and fiscal buffers.
By the end of 2025, Ghana’s unencumbered international reserves were estimated at US$12.3 billion, while central government deposits stood at 2.4% of GDP, providing additional support for debt management.
Fitch noted that the Eurobond issued in 2024 has already entered its repayment phase, while the DDEP bonds will begin amortising in 2027, both contributing to the expected increase in debt servicing costs.
The agency stated that reserves are likely to continue improving, which could further strengthen Ghana’s ability to meet its repayment obligations.
It also suggested that government may consider early buybacks of portions of the DDEP bonds before maturity as part of its debt management strategy.
Additionally, the gradual reopening of the domestic bond market is expected to create opportunities for refinancing, allowing fiscal authorities to manage debt more strategically and ease future repayment pressures.
Overall, while Ghana’s debt servicing burden is projected to rise from 2027, Fitch believes stronger liquidity positions, improving reserves, and renewed access to financial markets could help cushion the impact and maintain investor confidence in the economy.
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