Ghana is set to issue its first local-currency bond since the country’s 2022 debt default, marking a significant return to the domestic capital market as government seeks to finance its 2026 budget and rebuild investor confidence.
According to Bloomberg, the government will begin the sale of a new seven-year cedi-denominated security on March 30, with pricing guidance expected at the start of the offer and the book-building process scheduled to close on April 1. The bond sale will be arranged by a consortium of domestic financial institutions.
The move represents a key milestone in Ghana’s debt recovery journey after authorities suspended most debt payments in December 2022 and launched a restructuring programme tied to a $3 billion bailout from the International Monetary Fund.
Improved macroeconomic conditions support the return
The government’s decision to re-enter the market comes amid signs of improving macroeconomic stability. Ghana’s inflation rate has dropped to 3.3 percent, while the Bank of Ghana has cut its policy rate sharply in recent months, creating a more supportive environment for longer-term borrowing.
Officials are hoping those gains, alongside a more stable cedi and stronger foreign exchange reserves, will attract both local and offshore investors.
Analysts, however, say investor appetite may depend on pricing. Samir Gadio, head of Africa strategy at Standard Chartered Plc, told Bloomberg that while Ghana’s improving fiscal and external position is encouraging, yields may not be high enough to strongly attract foreign investors.
He added, however, that Ghana may still appeal to overseas buyers seeking portfolio diversification.
Finance Ministry seeks to rebuild domestic funding programme
The Ministry of Finance has framed the new issuance as part of a broader effort to restore domestic market activity after years of disruption caused by the Domestic Debt Exchange Programme.
In a recent statement, the ministry said the resumption of local debt offerings is intended to “re-establish a domestic funding program” and help “rebuild a sovereign yield curve” while also creating new investment opportunities for both retail and institutional investors.
Earlier this month, the ministry also confirmed that restrictions on new domestic bond issuance imposed under the debt restructuring process had expired, effectively reopening the path for longer-dated borrowing.
The new bond will be closely watched as a test of whether Ghana can gradually shift away from heavy reliance on short-term Treasury bills and re-establish a more sustainable domestic borrowing profile.
For government, the issuance is more than a financing exercise. It is also a confidence test — one that could signal whether investors believe Ghana’s recovery story is strong enough to support a full return to longer-term domestic capital markets.
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