Ghana is moving closer to completing one of the final stages of its broad debt restructuring programme, with investors holding a small group of bonds linked to the country’s health sector set to exchange their securities for new government-backed debt.
The mandatory bond swap involves about US$117.8 million worth of outstanding securities issued in 2014 through Saderea Designated Activity Company, a special purpose vehicle created to help finance Ghana’s health sector.
Under the agreement announced on Tuesday, bondholders will receive new Ghanaian government notes maturing in 2035 and 2037 in exchange for their existing securities.
The move follows approval from creditors holding more than two-thirds of the outstanding bonds, allowing the government to legally enforce the exchange on all remaining investors.
The transaction represents one of the final steps in Ghana’s effort to restructure debt accumulated before the country defaulted on external obligations in December 2022.
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According to S&P Global Ratings, the restructuring process has already covered about 97% of the debt Ghana intended to overhaul following the default, marking a major milestone in efforts to restore fiscal stability.
Ghana’s debt crisis emerged after rising borrowing costs, declining investor confidence and economic shocks pushed the country into its worst financial crisis in decades. The government subsequently launched a comprehensive debt restructuring programme covering domestic and external obligations as part of efforts to restore debt sustainability.
The country has since recorded signs of economic recovery, supported by improved foreign exchange reserves, stronger exports and tighter fiscal management.
S&P Global Ratings reaffirmed Ghana’s “B-” credit rating in March, citing record foreign currency reserves and a current account surplus driven largely by strong gold exports.
Gold has remained a key source of foreign exchange for Ghana, helping strengthen the country’s external position and support the recovery of its economy.
However, the ratings agency warned that significant fiscal challenges remain. Debt interest payments are projected to absorb around 20 percent of government revenue through 2029, highlighting continued pressure on public finances.
S&P also cautioned that fiscal discipline could face risks, particularly during election periods when government spending pressures often increase.
The government has maintained that completing the restructuring programme will help reduce debt vulnerabilities, improve investor confidence and create room for increased spending on economic development priorities.
The remaining bondholders have until July 6 to submit their instructions for the exchange, with settlement scheduled for July 9.
The completion of the swap is expected to further strengthen Ghana’s relationship with international investors and support efforts to rebuild access to capital markets after the debt crisis.
Analysts say successful implementation of the restructuring will be critical for Ghana as it seeks to lower borrowing costs, manage public debt and sustain economic growth.
The country’s recovery efforts are being closely monitored by investors and international institutions, including the International Monetary Fund, which has supported Ghana’s economic adjustment programme.
While the debt restructuring marks significant progress, authorities still face the challenge of maintaining fiscal discipline, boosting revenue mobilisation and ensuring economic gains translate into broader improvements for households and businesses.
