Former Finance Minister Dr Mohammed Amin Adam has called on the government to publish monthly updates on Ghana’s Sinking Fund as the country prepares for significant debt repayments under the Domestic Debt Exchange Programme (DDEP) in 2027 and 2028.
An analysis put the fund’s balance at GH¢15.6 billion as of July 22, 2026, against a projected year-end balance of GH¢30 billion.
The government faces principal repayments of GH¢58 billion in 2027 and GH¢53 billion in 2028, bringing the total to GH¢111 billion over the two-year period.
Dr Amin Adam said prefunding the Sinking Fund could help spread the repayment burden and reduce pressure on government finances when the obligations fall due. However, he cautioned that borrowing to build up the fund could increase costs if the returns on its investments were lower than the interest paid on the debt used to finance it.
“Prefunding is prudent, but it means part of the 2026 increase in debt may be cash held for future redemptions rather than deficit financing,” he wrote.
He urged the government to improve transparency by publishing monthly details of the fund’s inflows, including allocations from the 7 per cent share of non-oil tax revenue and proceeds from any bonds issued to support it.
He also called for the reports to disclose the fund’s investments and returns, the proportion of its resources financed through borrowing, and planned withdrawals to meet upcoming debt obligations.
According to Dr Amin Adam, regular disclosure would enable the public to assess whether the government was adequately preparing for the substantial repayment obligations ahead and managing the fund’s resources efficiently.
The proposed disclosures, he indicated, would also help clarify how much of the fund’s growth came from government revenue allocations and how much depended on borrowed money, providing a clearer picture of the country’s debt management strategy ahead of the 2027 and 2028 repayment deadlines.
