Ghana: Govt Targets Gh¢30bn Sinking Fund to Meet DDEP Obligations

What the report says

Ghana’s government expects to build its Sinking Fund to GH¢30 billion by the end of 2026 to prepare for repayments linked to the Domestic Debt Exchange Programme, according to a Ghanaian Times report distributed by AllAfrica. The first major DDEP maturity is due in February 2027, and officials say the fund is intended to reduce pressure on public finances when those obligations fall due.

Finance Minister Dr Cassiel Ato Forson gave the update during the 2026 Mid-Year Budget Review presented to Parliament last Thursday. The report said the Sinking Fund had reached GH¢15.6 billion as of July 22, 2026, putting it at more than half of the year-end target. The budget review was delivered under Section 28 of Ghana’s Public Financial Management Act and carried the theme “Resetting for Growth, Jobs, and Economic Transformation.”

Forson said Ghana’s debt restructuring process was close to completion, but large repayments remain ahead. According to the figures he presented, GH¢58 billion in DDEP bonds will mature in 2027 and another GH¢53 billion in 2028, for a combined GH¢111 billion over the two years. He described the Sinking Fund as part of a proactive approach meant to avoid relying on last-minute borrowing.

The Ghanaian Times reported that, under the 2026-2029 Medium-Term Debt Strategy, the government has earmarked seven percent of non-oil tax revenue and proceeds from domestic bond issuances for the Sinking Fund Cedi Account. The policy is aimed at supporting timely debt repayment, maintaining investor confidence and strengthening Ghana’s broader fiscal management framework.