Ghana Sinking Fund Targets GH30bn for DDEP Obligations by 2026

• The Ghanaian government aims to accumulate GH¢30 billion in the Sinking Fund by the end of 2026.
• The fund will serve as a financial buffer to meet debt obligations without putting undue pressure on the public purse.
• Significant debt repayments worth GH¢111 billion are due in 2027 and 2028.

The Ghanaian government is taking proactive steps to manage its debt obligations through the Domestic Debt Exchange Programme (DDEP). As part of this effort, a Sinking Fund has been established to accumulate GH¢30 billion by the end of 2026. This fund will serve as a financial buffer to enable the country to meet its debt obligations without putting undue pressure on the public purse. The government's commitment to strengthening debt management is underscored by the fact that as of July 22, 2026, the Sinking Fund had already accumulated GH¢15.6 billion, representing more than half of the targeted amount.

The government is aware that significant debt repayments are due in 2027 and 2028, with DDEP bonds worth GH¢58 billion maturing in 2027 and another GH¢53 billion falling due in 2028. These obligations highlight the need for prudent planning and disciplined fiscal management to ensure adequate resources are available to meet these commitments. The government has committed seven percent of non-oil tax revenues, together with proceeds from domestic bond issuances, to the Sinking Fund Cedi Account under the 2026-2029 Medium-Term Debt Strategy (MTDS). This arrangement will provide a dedicated pool of funds to meet future debt repayments while strengthening investor confidence in Ghana's fiscal management framework.

The strengthened Sinking Fund sends a strong signal to investors, credit rating agencies, and the Ghanaian public that the government is committed to honouring its financial obligations through careful planning and responsible public financial management. This commitment will help safeguard macroeconomic stability and reinforce confidence in the country's debt sustainability efforts. The Finance Minister, Dr Cassiel Ato Forson, has emphasized that the strategy will enable Ghana to meet its debt obligations without scrambling for last-minute borrowing, as was the case in the past.

Lawyers and compliance officers should watch for the impact of Ghana's Sinking Fund on its debt management strategy, particularly with significant debt repayments due in 2027 and 2028. This may have implications for investors and credit rating agencies.

Source: Original reporting via AllAfrica Ghana