The Government of Ghana is preparing to raise GH¢10 billion through its first domestic infrastructure bond, marking a significant shift in how the country finances large scale development projects.
The bond, aimed primarily at funding roads and interchanges across the country, comes at a time when authorities are seeking to rebuild confidence in the local debt market after years of fiscal stress. The International Monetary Fund is closely monitoring the move, describing it as a potentially positive step if carefully structured and aligned with debt sustainability goals.
According to sources familiar with the plan, the bond will be issued in two tranches of GH¢5 billion each, scheduled for the first and second halves of the year. The longer dated tenures are designed to appeal to domestic institutional investors such as pension funds, insurance companies and asset managers that are seeking predictable and stable returns.
Structure of the Planned Infrastructure Bond
The proposed infrastructure bond is expected to be supported by a clear issuance calendar, which the government plans to release later this month. While the Ministry of Finance has not issued an official statement, insiders confirm that the instrument is intended to deepen the domestic capital market while reducing Ghana’s dependence on external borrowing.
A key feature of the bond is its proposed repayment structure. Projects financed under the programme are expected to be largely self financed through electronic road tolls. This approach is intended to ensure that revenue generated from the infrastructure itself services the debt, thereby limiting additional pressure on the public purse. The model reflects lessons learned from previous infrastructure financing arrangements that placed a heavy burden on the national budget.
The bond issuance is closely aligned with President John Mahama’s Big Push initiative, a flagship infrastructure programme aimed at mobilising $10 billion for critical development projects nationwide. The initiative is central to the government’s broader economic recovery strategy, which seeks to stimulate growth through investment in transport, energy and industrial infrastructure.
In the 2026 budget, the finance minister allocated GH¢30 billion to support the Big Push agenda, more than double the GH¢13.8 billion provided in the previous year. The planned infrastructure bond is therefore expected to complement budgetary allocations and accelerate the pace of project execution, particularly in the roads sector where funding gaps have persisted.
Investor Confidence Gradually Returns
Ghana’s decision to tap the domestic bond market comes as investor confidence shows signs of recovery. The country, Africa’s largest gold producer, defaulted on its debt in 2022, effectively shutting itself out of international capital markets. Since then, authorities have implemented tough fiscal and monetary measures aimed at restoring stability.
Yields on Ghana’s cedi denominated bonds due in 2039 have fallen by more than 10 percentage points over the past year, settling around 16 per cent. This decline reflects improving sentiment among investors who are increasingly optimistic about the country’s economic prospects and policy direction.
IMF Oversight and Caution
The International Monetary Fund has welcomed Ghana’s efforts to deepen its domestic capital market, noting that well designed local financing instruments can support sustainable growth. However, the Fund has also issued a note of caution, stressing that infrastructure bonds must be carefully managed to avoid undermining debt sustainability.
According to the IMF, such bonds should be targeted at high return projects that can generate sufficient economic and financial benefits. The Fund has also warned against crowding out private sector credit, a risk that could arise if government borrowing absorbs a disproportionate share of available domestic liquidity.
As Ghana nears the end of its $3 billion IMF supported programme, which is expected to conclude in May, compliance with these recommendations will be critical. The programme has played a key role in stabilising the economy and restoring macroeconomic discipline.
Improving Macroeconomic Conditions Support the Plan
Macroeconomic indicators have improved markedly, providing a more supportive backdrop for the planned bond issuance. Inflation has eased sharply, falling to 5.4 per cent in December from nearly 54 per cent in 2023. The cedi also strengthened by about 41 per cent against the US dollar last year, easing cost pressures on businesses and households.
These gains have helped stabilise the domestic financial market and improved the attractiveness of cedi denominated assets. For the government, this creates an opportunity to mobilise long term funding locally at more manageable interest rates.
Beyond fiscal considerations, the infrastructure bond has significant implications for small and medium sized enterprises. Improved road networks can lower logistics costs, shorten delivery times and open up new markets, particularly for manufacturers, traders and agribusiness operators who rely heavily on efficient transport systems.
By linking infrastructure financing to economic productivity, the government aims to ensure that recovery efforts translate into tangible benefits for the private sector. If successfully implemented, the bond could support job creation, enhance competitiveness and strengthen domestic supply chains.
Ghana’s planned GH¢10 billion infrastructure bond represents a major test of its strategy to fund development through domestic resources while maintaining fiscal discipline. With inflation falling, investor confidence improving and IMF oversight in place, the initiative signals a cautious but ambitious step toward rebuilding the economy after years of turbulence.
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