Ghana is facing renewed pressure from international investors to return to the global capital markets as improving economic conditions, credit rating upgrades and stronger international reserves revive interest in the country’s investment prospects.
However, the International Monetary Fund (IMF) is urging caution, warning that Ghana must prioritise rebuilding investor confidence and strengthening its credit standing before considering a return to international borrowing.
The debate has gained momentum during the IMF and World Bank meetings in Bangkok, Thailand, where offshore investors, fund managers and international banks have expressed interest in Ghana raising funds through Eurobonds and syndicated loans.
Despite the growing appetite for Ghanaian debt, the government insists it is in no hurry to borrow from international markets, maintaining that consolidating economic stability and improving the country’s credit rating remain its immediate priorities.
The competing positions have placed Ghana’s economic recovery under renewed scrutiny, with policymakers facing the challenge of balancing investor interest against the risks of accumulating external debt too quickly after the country’s recent debt restructuring.
Investors See Opportunity in Ghana’s Economic Recovery
Ghana’s improving economic conditions have encouraged some international investors to reconsider the country’s prospects following its debt default and subsequent restructuring.
Stronger international reserves, improving credit ratings and efforts to maintain fiscal discipline have contributed to renewed interest in Ghana as an investment destination.
Some fund managers believe the country’s proposed Policy Coordination Instrument (PCI) programme with the IMF could help preserve the progress made under the existing economic recovery programme.
The PCI is a non-financing arrangement designed to support economic policy coordination and reinforce confidence in a country’s policy framework.
“With Ghana being under this PCI Programme, we don’t see things deteriorating or Ghana departing from the current economic gains soon,” a fund manager noted.
The renewed interest also reflects investors’ search for better returns amid comparatively lower yields in the United States.
Views expressed during the Bangkok engagements suggest that a Ghanaian Eurobond could offer an average yield of about 8%, compared with returns of around 5% or lower on investments in the US market.
Such returns could attract investors seeking higher yields, but they would also represent a potentially expensive borrowing cost for Ghana.
The government must therefore weigh the benefits of renewed access to international financing against the long-term implications of servicing external debt at relatively high interest rates.
Government Rejects Pressure to Borrow Abroad
Despite the growing interest, the government has maintained that returning to the international capital markets is not an immediate priority.
Dr Theo Achampong, Technical Advisor to the Finance Minister, confirmed that international borrowing had featured in discussions with international banks but stressed that the government was focused on consolidating recent economic gains.
“We want to continue stabilising things for now, build strong international reserves,” he said.
“As we speak, there is no motivation to go to the international capital market.”
Dr Theo Achampong
Dr Achampong explained that the government wants to improve Ghana’s credit ratings and eventually secure investment-grade status before seriously considering a return to international borrowing.
“When you look at our borrowing needs over the one year, the capital market is not an option,” he added.
Finance Minister Dr Cassiel Ato Forson has similarly ruled out international capital market financing under the government’s plans for 2026.
Speaking at a joint press conference with a visiting IMF mission during the latest review of the Extended Credit Facility programme, Dr Forson said any future decision to borrow internationally would be communicated to the public.
“We are not in a hurry to go onto the international capital markets, and if we find a need to go to the international capital markets, we will accordingly inform the people of Ghana.”
Dr Ato Forson
The 2026 Budget makes no provision for financing through international capital markets, reinforcing the government’s decision to avoid fresh external borrowing through this channel during the year.
IMF Wants Ghana to Protect Its Debt Recovery
The IMF has urged Ghana to rebuild investor confidence, improve its credit rating and strengthen domestic financing capacity before returning to international capital markets.
The Fund’s Resident Representative in Ghana, Dr Adrian Alter, said the immediate priority should be to consolidate the gains achieved through debt restructuring rather than rush into new external borrowing.
Ghana’s debt position has improved significantly under the IMF-supported programme, with the latest Debt Sustainability Analysis moving the country from a high to a moderate risk of debt distress.
According to Dr Alter, central government debt has declined to approximately 45% of gross domestic product, a level the IMF had initially projected Ghana would reach only by 2034.
The improvement represents an important development in the country’s recovery efforts. However, the ability to sustain the progress will depend on disciplined fiscal management, stronger domestic revenue mobilisation and prudent borrowing decisions.
A premature return to international markets could expose Ghana to elevated borrowing costs if investors continue to demand substantial premiums to compensate for the risks associated with the country’s recent default.
ISSER Boss Warns Against Another Debt Trap
The caution surrounding Ghana’s borrowing ambitions has also been echoed by Professor Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER).
Speaking during his inaugural lecture at the Ghana Academy of Arts and Sciences, titled “Debt, Investment, and Growth in Ghana: Did We Borrow to Consume?”, Professor Quartey warned against a hasty return to international capital markets following the country’s debt restructuring.
He called for a measured approach to borrowing, particularly through Eurobonds, warning that excessive reliance on external debt could undermine long-term economic stability.
His concerns highlight a fundamental question confronting Ghana’s economic managers: whether renewed access to international financing would support productive investment or recreate the debt pressures that forced the country into restructuring.
Although foreign borrowing can provide resources for infrastructure and other development priorities, its benefits depend heavily on how the funds are deployed and whether the resulting investments generate sufficient economic returns.
Ghana’s immediate challenge is therefore to ensure that any future borrowing supports sustainable growth rather than creates fresh repayment difficulties.
Ghana’s Next Move Could Shape Its Economic Future
The renewed investor interest presents Ghana with an opportunity to demonstrate that its economic recovery can attract international capital on more favourable terms.
However, access to international markets alone should not be treated as proof that the country’s debt problems have been permanently resolved.
The government’s emphasis on reserve accumulation, credit rating improvements and fiscal stability reflects an effort to establish stronger foundations before taking on new external obligations.
Bank of Ghana Governor Dr Johnson Asiama has also assured investors that the central bank will continue implementing appropriate monetary policy measures to support currency stability and keep inflation low despite external threats.
Ultimately, Ghana’s return to international capital markets will depend on whether the government can sustain economic gains, strengthen investor confidence and secure borrowing terms consistent with long-term debt sustainability.
With investors already expressing interest, the pressure to return may intensify. However, the government’s position remains that Ghana must first consolidate its recovery before reopening the door to international borrowing.
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