GhArticles.com Every News in Detail
The government of Ghana is projected to borrow approximately GH₵200 billion from the Treasury bill market in 2025, according to a report by Databank Research. This marks a decrease from an estimated GH₵220 billion borrowed in 2024, translating to an average weekly borrowing of GH₵3.9 billion, down from GH₵4.2 billion in the previous year.
Databank Research’s 2025 Ghana Market Outlook highlights that the reduction in short-term borrowing is driven by improved access to alternative funding sources and a strategic shift towards long-term securities. This transition is in line with Ghana’s broader economic recovery efforts and its enhanced access to international financial markets, which provide more sustainable financing options.
The report anticipates that the move towards long-term instruments will gain momentum after the first quarter of 2025.
The report states:
“In 2025, we foresee a notable moderation in the Treasury’s demand for money market funding, driven by improved access to alternative funding sources and a strategic pivot towards long-term securities. We expect the ample decline in demand to offer the Treasury some space to trim high T-bill yields.”
While short-term funding will remain essential in the early part of the year due to refinancing needs and maturities from significant uptake in the latter half of 2024, the overall demand for Treasury bills is expected to decrease.
With key macroeconomic indicators showing signs of recovery, the government is likely to prioritize longer-term financing options. This strategy is expected to provide more stability and reduce dependence on high-yielding short-term instruments.
The move reflects Ghana’s efforts to strengthen its fiscal position and explore sustainable avenues for managing public debt.
