Ghana may re-enter the domestic bond market in 2025, three years after its debt restructuring, as improved economic indicators like declining inflation create a favorable environment.
According to Dr. Samuel Arkhurst, Director of Treasury and Debt Management at the Ministry of Finance, the timeline aligns with the typical two-to-four-year market normalization following debt restructuring. Since Ghana’s last bond issuance in September 2022, the country has been focused on restructuring, completing a significant domestic debt exchange in 2023, where GH₵83 billion in bonds were swapped with reduced coupon rates and extended terms.
Dr. Arkhurst noted that with inflation now halved from 2022’s 54%, the government anticipates more viable conditions to re-enter the bond market by 2025.
Finance Minister Dr. Mohammed Amin Adam, speaking at the same press briefing, highlighted Ghana’s robust economic recovery, pointing to a 5.8% growth rate in the first half of 2024—the highest in five years—and noted the government’s fiscal discipline efforts are on track, with a projected primary surplus of 0.5% by the end of 2024, despite it being an election year.
Additionally, Dr. Adam reported that Ghana’s debt restructuring journey has been highly successful, with over 93% of eligible external debt now restructured, including Eurobond agreements where over 98% of bondholders consented to revised terms involving a 37% haircut and coupon payment suspension until 2026.
While the economy shows strong signs of recovery, Dr. Adam acknowledged the ongoing energy sector financing challenges impacting growth. To address this, the government has secured a $250 million World Bank loan to help improve revenue collection for the Electricity Company of Ghana (ECG) through smart metering and to support broader fiscal transparency in energy payments.
These strategic moves reflect Ghana’s commitment to achieving fiscal stability and sustained growth, paving the way for re-entry into the domestic bond market and a positive economic trajectory.
