Introduction Macroeconomic Insights Global Political Landscape Ghana’s Fiscal Position Technology & Cybersecurity Banking Industry Public debt dynamics mirror the fiscal cycle and exchange rate movements. Public debt in nominal US dollar terms rose steadily from 24.8 billion dollars in 2014 to a peak of 60.4 billion dollars in 2021. Following restructuring and consolidation, the stock declined to 53.9 billion dollars in 2022 and 52.4 billion dollars in 2023, before easing further to 49.4 billion dollars in 2024. The increase to 59.9 billion dollars in 2025 reflects renewed financing flows and valuation effects rather than a return to unsustainable borrowing.
More importantly, the public debt ratio declined sharply after peaking at 77.5 percent in 2022, falling to 73.7 percent in 2023, 61.8 percent in 2024, and 48.9 percent in 2025 with banks’ holding of the public debt also moderating significantly. This trajectory significantly reduces sovereign risk pressures on the banking sector. Figure 16: Public Debt and Deposit Taking Banks Sector Holdings Source: Bank of Ghana Online Database Portal For banks, these fiscal and debt developments reduce rollover risk and valuation volatility on government securities, but they do not eliminate sovereign exposure risks.
Government securities remain a large share of bank assets, and fiscal slippages would quickly transmit into balance sheet stress. In 2026, banks must therefore balance the improved sovereign outlook with prudent concentration management and duration risk control. Ghana Association of Banks Ghana Association of Banks 2026 Industry Outlook 2026 Industry Outlook 15