Deloitte Ghana has commended the government’s decision to implement a debt reprofiling and buyback programme, describing it as a well-considered response to the challenges posed by costly debt obligations and uneven repayment schedules.
The firm advised that to maximise the impact, authorities should focus buybacks on the most expensive and volatile debt instruments, particularly those that threaten fiscal stability.
“It is essential to conduct these operations in close consultation with key stakeholders, including domestic and international investors, to maintain market confidence.”
“We further recommend transparent communication of objectives, processes, and expected outcomes to all stakeholders to avoid market disruptions. Ultimately, debt reprofiling and buybacks should be embedded within a broader strategy of prudent fiscal management and sustainable borrowing practices,” Deloitte stressed.
The firm further urged that as government prepares to re-enter the bonds market, borrowed funds should be ringfenced for self-financing projects. This, it noted, would ease pressure on domestic revenue by reducing the burden of interest and principal repayments.
“This will serve to improve fiscal discipline and maintain prudent fiscal balance,” it added.
Deloitte also welcomed Ghana’s recent sovereign rating upgrade from “high” to “moderate,” noting it as a positive step toward restoring investor confidence.
To consolidate debt sustainability, the firm recommended stronger measures to safeguard the country’s debt profile.
“The adoption of a concessional-first borrowing strategy is a prudent approach to minimising financing costs and mitigating potential debt risks. It is further recommended that concessional financing be prioritised for large-scale infrastructure, social, and climate-related projects, ensuring that new borrowings contribute meaningfully to long-term economic growth and resilience.”
On the government’s intention to re-engage with the domestic bonds market, Deloitte described it as a cautious but prudent move.
“This process should be managed with caution and utilised primarily as a liability management tool to extend debt maturities, rather than as a vehicle for new expansionary fiscal spending,” the firm advised.
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