Ghana is set to make a cautious return to its domestic debt market next week, marking a significant step in rebuilding investor confidence after the country’s 2022 debt default.
The government, led by President John Dramani Mahama, will issue a seven-year local-currency bond beginning March 30, with the offer expected to close on April 1, according to reports by Bloomberg.
The move represents the first such issuance since Ghana suspended most of its debt payments in December 2022 and entered a restructuring programme supported by the International Monetary Fund.
Authorities say the bond sale is aimed at re-establishing a domestic funding programme, rebuilding the sovereign yield curve, and restoring confidence among both retail and institutional investors.
The return to the market comes amid improving macroeconomic conditions. Inflation has slowed sharply to 3.3 percent—near a three-decade low—while the Bank of Ghana has reduced its policy rate significantly from last year’s highs to 14 percent.
These gains, combined with stronger foreign exchange reserves supported by rising gold prices, have helped stabilise the cedi and improve Ghana’s fiscal outlook.
However, analysts caution that while the improving indicators may boost domestic participation, the bond may offer limited appeal to foreign investors due to relatively lower yields.
Samir Gadio, Head of Africa Strategy at Standard Chartered Plc, noted that despite improved economic fundamentals, yields may not be sufficiently attractive externally. He added, however, that Ghana could still benefit from international interest due to portfolio diversification considerations.
The bond issuance will be managed by a consortium of local financial institutions, including Absa Bank Ghana Ltd, CalBank Plc, GCB Bank Plc, Stanbic Bank Ghana Ltd, Fincap Securities Ltd and One Africa Securities Ltd.
While the exact amount to be raised will be determined at the start of the offer, the government is targeting approximately 20.2 billion cedis (about $1.8 billion) from medium-term securities this year.
The reopening of the domestic bond market follows the expiration of restrictions tied to Ghana’s debt restructuring programme earlier this month, paving the way for renewed borrowing.
Economists say the success—or otherwise—of the bond sale will serve as a key test of market sentiment toward Ghana’s economic recovery and its ability to sustainably finance its budget going forward.
