Ghana’s interest payments will average a high 20% of government revenue over the next four years, ratings agency S&P Global Ratings has disclosed.

That said, this is well below the historical average cost of servicing Ghana's government debt, which peaked at almost 48% in 2021.

According to the US-based firm, the reduction is underpinned by the effects of debt restructuring, the cedi's exchange rate appreciation in 2025 and lower local currency financing costs, as inflation and local interest rates fell to multiyear lows.

It pointed out that although the exchange rate has weakened by 9.2% since the start of 2026, it remains 43% stronger than it was at its lowest point.

In November 2024, the Ghanaian cedi dropped to GH¢16.47 to US$1.

Inflation receded to 3.2% in March 2026, which is closest to the lowest rate on record for Ghana. It has since risen modestly to 5% at the end of August 2026.

Inflation averaged 31% a year over 2022-2024, partly because the Bank of Ghana provided direct financing to the government in the lead up to, and during, the debt crisis.

S&P said the cost of rolling over Ghana's local currency debt has substantially reduced.

As such, interest rates on Ghana's six-month treasury bills have fallen to about 6.5%, and its one-year bills to 10.1%, from almost 30% at year-end 2024.

The Ministry of Finance imposed a three-year ban on the issuance of new medium- or long-term domestic bonds following the domestic debt restructuring in December 2022. In 2026, the government started to issue longer tenor bonds.

S&P said this should help lengthen the maturity profile of Ghana's local currency debt.

However, the conflict in the Middle East is likely to erode some of these gains by causing inflation and financing costs to rise and increasing pressure on the cedi.