Government to require $600m-$800m for external debt service in 2024

Ghana will need between $600 million and $800 million for external debt service in 2024, with $477 million allocated for Eurobond debt service.

IC Africa Research forecasts debt service on restructured Eurobonds resuming in July 2024. The total requirement includes ongoing multilateral debt service but excludes $1.6 billion in legacy arrears owed to Independent Power Producers.

Ghana’s forex reserves were $4.3 billion in April 2024. IC Africa Research anticipates limited foreign exchange market support, reflecting a cautious outlook for the Ghanaian cedi.

The restructuring of Eurobonds suggests limited upside for secondary market pricing, with potential gains of 5%-7%.