Ghana is all set to complete one of the last remaining pieces of its sweeping debt restructuring, with investors in a small set of bonds tied to the African country’s health sector set to have their securities forcibly swapped for new government-linked debt.
“The bonds, issued in 2014 through a vehicle called Saderea Designated Activity Company, originally helped finance Ghana’s health sector. An amount worth USD 117.8 million remains outstanding. Under a deal announced on Tuesday (June 23), holders will receive new Ghanaian government notes maturing in 2035 and 2037 in exchange,” reported Reuters.
As per the reports, a group of creditors representing more than two-thirds of the outstanding bonds has already accepted the terms, meeting the legal threshold to enforce the deal on all bondholders.
“The swap brings Ghana closer to completing a restructuring that has already covered approximately 97% of the debt it sought to overhaul after its December 2022 default,” S&P Global Ratings said.
The economy of Ghana, rich in gold, oil, and cocoa, has shown recovery since the 2022 debt default, with S&P reaffirming the country’s ‘B-‘ credit rating in March 2026, citing tailwinds like record foreign currency reserves and a current account surplus driven by strong gold exports.
However, S&P has warned that debt interest payments are expected to consume about 20% of government revenue through 2029, underscoring the risks of fiscal slippage, especially during election periods.
Bondholders have until July 6 to provide instructions, with settlement scheduled for July 9.
Earlier, on June 26, Ghana’s President John Dramani Mahama and Finance Minister Cassiel Ato Forson said that African debt was “mispriced” while pitching for faster and fairer restructuring tools, adding that the African country was targeting an investment-grade credit rating within three years.
“Debt restructuring mechanisms must become faster, fairer and more inclusive,” Mahama said, while stating that the African country restructured its debt under the G20’s “Common Framework” debt-restructuring mechanism.
Mahama, who along with Ato Forson, was attending an investor conference in London, called for debt reform that supports development, stating that the continent needs climate finance as well.
“Africa is not a risk to be managed. Africa is an opportunity to be seized,” Mahama said further.
As per Forson, Ghana should be eyeing becoming an investment-grade territory within three years.