The government is projected to borrow approximately GH₵200 billion from the Treasury bill market in 2025, marking a decrease from the estimated GH₵220 billion borrowed in 2024, according to a report by Databank Research.
This forecast translates 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 attributes the decline in short-term borrowing to enhanced access to alternative funding sources and a strategic shift toward long-term securities.
This realignment is part of Ghana’s broader economic recovery strategy and increased engagement with international financial markets, which provide the government with more sustainable financing options.
The report anticipates that the transition to long-term instruments will gain full momentum after the first quarter of 2025.
“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 reduced demand to allow the Treasury some space to trim high T-bill yields,” the report noted.
It further stated: “With improving access to international funding and most macroeconomic indicators showing signs of sustained recovery, the government is likely to focus on longer-term financing options. However, this shift is expected to take place after the first quarter of 2025, as the Treasury’s refinancing needs may keep demand for short-term funding elevated while navigating maturities from the high uptake in the second half of 2024.”
The government’s efforts to balance short-term and long-term borrowing align with its goal of fostering economic stability and promoting sustainable growth.
READ ALSO: