Head of Africa Strategy at Standard Chartered Plc, Samir Gadio, has indicated that Ghana’s current economic indicators suggest the timing is right for the country to resume local currency bond sales.

He suggests that Ghana appears poised to re-enter the domestic bond market as falling inflation, a strengthening cedi, and easing borrowing costs create favourable conditions for local currency bond issuance.

“The conditions seem right to resume local currency bond issuance,” Gadio told Bloomberg.

“Cedi gains should support further disinflation and monetary easing, which should facilitate renewed local-currency bond issuance,” he added.

Meanwhile, the country's inflation rate has sharply declined to 18.4%, a significant improvement from levels above 54% in 2022.

Concurrently, the government’s three-month borrowing costs have dropped to 14.7%, down from over 35% in early 2023.

Additionally, the cedi’s strong performance, appreciating by 43% this year, has improved the inflation outlook and is expected to pave the way for the Bank of Ghana to potentially cut its benchmark interest rate in July, which would mark its first rate reduction in ten months.

Furthermore, Bloomberg noted that the improving economic profile is also reflected in Ghana’s sovereign debt performance.

On Monday, June 23, 2025 at 3:50 p.m, Ghana’s dollar bonds maturing in 2035 increased by 0.5% to 76.66 cents on the dollar in London trading, while 2029 notes gained 0.5% to 93.02 cents, marking the third consecutive day of increases.

The positive momentum comes after Fitch Ratings upgraded Ghana’s sovereign long-term credit rating to B- from ‘restricted default’ on Monday June 16, 2025.

The rating agency explained that the upgrade was driven by the country’s progress in normalising relations with a significant majority of its external commercial creditors.

MA

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