Ghana targets GH¢30bn Sinking Fund to meet debt obligations

Ghana's government is strategically building a financial buffer, aiming to have GH¢30 billion in its Sinking Fund by the close of 2026. This initiative is a key component of its preparation for repaying obligations under the Domestic Debt Exchange Programme (DDEP), with the first significant maturity scheduled for February 2027.

Finance Minister Dr. Cassiel Ato Forson announced that as of July 22, 2026, the Sinking Fund had already accumulated GH¢15.6 billion. He presented this figure to Parliament during the 2026 Mid-Year Budget Review, highlighting the government's commitment to robust debt management and ensuring timely repayment of future financial commitments. Dr. Forson assured that the current accumulation trajectory puts the government on course to meet the GH¢30 billion target, which he stated would be sufficient to cover the GH¢30 billion DDEP debt maturing in early 2027.

“

Today, I can report to this House that as of July 22, 2026, that war chest holds GH¢15.6 billion. We are on course to accumulate GH¢30 billion in the Sinking Fund by the end of 2026. This will be enough to repay the GH¢30 billion DDEP debt that will fall due in February 2027.

Dr. Forson stressed the government's proactive approach, stating, "Brick by brick, cedi by cedi, we are building the wall that will meet the wave so that when 2027 and 2028 come, Ghana will not scramble. Ghana will simply pay." This strategy aims to prevent the challenges associated with last-minute borrowing to meet maturing obligations.

The Finance Minister also provided context on the scale of upcoming repayments, noting that DDEP bonds worth GH¢58 billion mature in 2027, followed by another GH¢53 billion in 2028, totaling GH¢111 billion over the two-year period. He detailed that under the 2026–2029 Medium-Term Debt Strategy, seven percent of non-oil tax revenues and proceeds from domestic bond issuances are allocated to the Sinking Fund. This dedicated pool of funds is intended to bolster investor confidence and demonstrate Ghana's commitment to fiscal responsibility.

“

Brick by brick, cedi by cedi, we are building the wall that will meet the wave so that when 2027 and 2028 come, Ghana will not scramble. Ghana will simply pay.