Ghana is preparing to raise ₵10 billion ($935 million) through its first domestic infrastructure bond to finance roads and interchanges across the country.
The sale will be split into two tranches of ₵5 billion each, issued in the first and second halves of the year, with longer-dated tenures.
Details of the offering, along with other domestic bond issuances, are expected to be published in an issuance calendar later this month.
What the sources are saying
According to one source, the projects will be self-financed, largely through electronic road tolls, ensuring they do not add to Ghana’s debt burden.
President John Mahama is banking on infrastructure investment to drive economic revival under his Big Push initiative, which aims to mobilize $10 billion for major projects.
The government has already scaled up funding, with the finance minister allocating ₵30 billion for the plan in the 2026 budget—more than double the ₵13.8 billion earmarked last year.
Emerging from debt crisis
Africa’s largest gold producer is seeking to leverage improved investor sentiment as it recovers from a debt crisis under the previous administration, which culminated in a 2022 default that cut the country off from capital markets.
Investor confidence has strengthened, with yields on Ghana’s cedi bonds due 2039 falling more than 10 percentage points in the past year to around 16%.
IMF bailout nears completion
Ghana is also on track to exit its $3 billion bailout program with the International Monetary Fund (IMF) in May, following progress in its economic turnaround plan.
Key indicators have improved significantly:
- Inflation slowed to a 23-year low of 5.4% in December, down from nearly 54% in 2023.
- The cedi appreciated 41% against the dollar last year.
IMF endorses domestic market development
The IMF has welcomed Ghana’s efforts to deepen domestic capital markets but cautioned that infrastructure bonds must align with debt-sustainability goals.
“The IMF welcomes steps to deepen domestic capital markets and is engaging with the government on reopening the local bond market in a prudent, carefully calibrated and sequenced manner,” an IMF spokesperson said in an emailed response.
The Fund warned against crowding out private credit but acknowledged the potential benefits:
“If well‑designed and directed to high‑return projects, infrastructure bonds can support growth, job creation and private‑sector activity,” the lender added.
What you should know
In November, Ghana’s inflation dropped to 6.3%, the 11th consecutive decline, reaching its lowest level in nearly seven years.
Further contributing to the downward trend, food inflation eased significantly to 6.6% in November, compared with 9.5% recorded the previous month.
Similarly, non-food inflation moderated to 6.1%, down from 6.9% in October, reflecting broad-based price stability across key consumer categories.
