DDEP repayments to push Ghana’s debt service costs higher from 2027

Ghana’s debt servicing costs are projected to rise sharply from 2027 as repayments on Domestic Debt Exchange Programme (DDEP) bonds begin to fall due. The debt service obligations, excluding short-term debt, are expected to increase to 6.8% of GDP in 2027, up from 4.6% recorded in 2025, according to Fitch Ratings. The increase will be driven largely by the start of amortisation payments on the restructured DDEP bonds. The development comes after Ghana’s second-largest Eurobond issuance, valued at about $2.9 billion, began amortising earlier this year in January 2026. Despite the expected rise in repayments, Fitch Ratings maintains that Ghana’s debt obligations remain manageable in the medium term. This confidence is anchored on the country’s improving reserve position and stronger fiscal buffers. At the end of 2025, Ghana’s unencumbered international reserves stood at an estimated $12.3 billion, while central government deposits reached 2.4%of GDP. “The second largest Eurobond (USD2.9 billion) issued in 2024 started amortising in January 2026 and DDEP bonds will start amortising in 2027, contributing to debt service costs (excluding short-term debt) rising to 6.8% of GDP in 2027, from 4.6% in 2025.” It is also expected that reserves will continue to rise, providing additional support for debt repayments. There are also indications government could begin buying back portions of the DDEP bonds before they mature. Fitch Ratings believes the gradual reopening of the domestic bond market may give fiscal authorities room to refinance debt more strategically and reduce future repayment pressures. The outlook suggests that while Ghana’s debt servicing burden will intensify from 2027, improving reserves, stronger liquidity and renewed market access could help cushion the impact and sustain investor confidence in the economy.