Offshore Investors Re-Enter Ghana's Bond Market with Cautious Approach

Renewed offshore interest in Ghana's domestic bond market is underway, with investors focusing on shorter-dated maturities in a development analysts consider a cautious re-entry of foreign capital into the domestic debt space. Despite the increase in trading activity, yields moved higher across much of the curve, with the weighted average yield to maturity climbing 19 basis points to 16.51 percent. Analysts at Databank attribute the movement primarily to non-local actors, including international investors who prefer liquid, lower-duration assets that offer exit flexibility.

Key Takeaways:

• Offshore investors showed renewed interest in Ghana's domestic bond market, focusing on shorter-dated maturities, in a development analysts consider a cautious re-entry of foreign capital into the domestic debt space.
• Trading activity in the secondary bond market rose by 13.85 percent week-on-week to GHS904million, up from GHS794million in the previous week.
• The surge was largely driven by demand for the February 2030 and February 2031 papers, which together accounted for 61 percent of total turnover.
• The weighted average yield to maturity climbed 19 basis points to 16.51 percent, with yields on the 2027-2030 maturities rising to an average of 16.7 percent compared with 16.03 percent the previous week.
• Analysts at Databank say this is consistent with broader risk appetite trends, as global investors remain cautious following the recent debt restructuring exercises and are more likely to test the market through shorter-dated securities.
• Domestic institutions remain a critical driver of bond demand, particularly as government securities maintain their role as preferred collateral for repurchase agreements.
• The Treasury's larger issuance targets in the coming weeks, coupled with BoG's open market operations, are expected to test the depth of both local and foreign demand.

Statistics:

• Trading activity in the secondary bond market rose by 13.85 percent week-on-week to GHS904million, up from GHS794million in the previous week.
• Yields on the 2027-2030 maturities rose to an average of 16.7 percent compared with 16.03 percent the previous week.
• The weighted average yield to maturity climbed 19 basis points to 16.51 percent.
• The first auction in September was oversubscribed for the first time in four weeks, with investors submitting GHS4.39billion against maturities of GHS3.69billion.
• The Treasury accepted GHS4.26billion, achieving a target coverage ratio of 1.03 times and a maturity coverage ratio of 1.18 times.
• Yields on the 91-day and 182-day bills climbed to 10.42 percent and 12.41 percent, respectively, while the 364-day bill edged down to 12.97 percent.

Sources:

• Ghana Web, 09 September 2025
• Databank analysts' note