BY Issah Olegor
Ghana’s already fragile economy could face renewed turbulence as the country prepares to meet major Eurobond repayments in the coming years, the World Bank has warned.
In its October 2025 Africa Pulse Report, the Bank cautioned that Ghana and several Sub-Saharan African nations are likely to experience “significant refinancing pressures” as maturing Eurobonds become due between 2025 and 2027 — a development that could strain already weak fiscal positions.
According to the report, Ghana will have to redeem a US$500 million Eurobond—equivalent to 0.7% of Gross Domestic Product (GDP)—in 2025.
The pressure will intensify the following year when redemptions rise to 1.2% of GDP in 2026, posing a serious challenge to the country’s debt sustainability amid limited access to international capital markets.
The report situates Ghana’s looming repayment burden within a broader African context, noting that South Africa, Senegal, and other countries face similar, if not greater, challenges.
South Africa, the continent’s most industrialized economy, is expected to redeem bonds amounting to 3.0% of its GDP between 2025 and 2027, while Senegal’s obligations total US$1.1 billion over the 2025–2028 period, with roughly a third maturing in 2026.
The World Bank highlighted that refinancing risks have been amplified by persistently high global interest rates, elevated funding costs, and policy uncertainties in major economies, particularly the United States.
These factors have not only increased the cost of borrowing but have also intensified market fragmentation, leaving developing economies with limited refinancing options.
For Ghana, these risks come at a time when the country is still recovering from one of its worst economic crises in decades.
The government, led by President John Mahama, is implementing a three-year IMF-supported programme aimed at restoring macroeconomic stability, restructuring public debt, and rebuilding investor confidence after defaulting on external bonds in 2022.
Under the IMF’s debt restructuring deal, Ghana is negotiating with both bilateral creditors and Eurobond holders to ease repayment terms.
However, the World Bank’s latest warning suggests that time is running out, and the country may need to secure fresh lines of credit or extend maturities to prevent a liquidity crunch.
