Ghana’s Fixed income Market: recovery and Future Prospects
The Ghana Fixed Income Market (GFIM) is demonstrating resilience and growth following a challenging period marked by debt restructuring. While overall trading activity remains below peak levels, recent data reveals pockets of value and a strengthening market driven by improving economic indicators.
Recent trading sessions highlight this dynamic.A 91-day treasury bill,maturing january 26,2026,was the most actively traded government instrument,with 67.57 million cedis changing hands across 15 deals, closing at 99.16. Banks and financial institutions continue to prioritize short-term government paper for effective cash flow and liquidity management.
Corporate bond trading saw 40.88 million cedis traded in two transactions involving bonds issued by a major financial institution,maturing August 28,2028,and offering a 13 percent coupon. These bonds closed at 93.48, reflecting investor assessment of credit risk and the premium demanded over government securities. Meaningful activity also occurred in the repo market,with 68.19 million cedis traded across six deals in a government bond maturing February 11, 2031. This instrument, with an 8.95 percent coupon, closed at 73.91, yielding 16.61 percent,and proving valuable for collateralized short-term borrowing.
Established in August 2015, GFIM has become a leading bond market in West Africa. after a substantial recovery in 2024, trading volume reached 174 billion cedis, a significant increase from the 98 billion cedis recorded in 2023. Cumulative trading volumes have now surpassed 1.07 trillion cedis as of September 2025. The 2023 downturn was directly linked to the Ghana’s Domestic Debt Exchange Program (DDEP), which caused investor uncertainty and losses, leading to a collapse in trading volumes from a high of 230 billion cedis in 2022.
Though, positive economic trends are fostering renewed confidence. Inflation has fallen to 6.3 percent in November 2025 – a four-year low and below the Bank of Ghana’s target. The cedi has also strengthened considerably, appreciating by approximately 35 percent in 2025, supported by robust exports of cocoa and gold. Responding to this stability, the Bank of Ghana has begun easing monetary policy, reducing its policy rate from 21.5 percent to 18 percent.
Despite these improvements, a risk premium persists, with medium-term government bond yields still ranging between 15.18 percent and 16.05 percent. Corporate bond issuance remains subdued, with only eight companies currently maintaining active bonds, a decrease from twelve. To date, corporations have collectively raised 24.32 billion cedis through bond issuances. the Ghana stock Exchange is actively working to broaden market participation, aiming for 100 corporate listings and increasing investor accounts from two million to ten million.
GFIM operates on the Bloomberg E-Bond trading platform, ensuring clarity, electronic execution, and automated settlement. All government-issued treasury bills, bonds, and notes are automatically listed, with other securities, including corporate bonds and Bank of Ghana instruments, eligible upon meeting listing requirements. The market benefits from strengthened regulatory oversight, including integration with the Central Securities Depository, supervision by the Securities and Exchange Commission and the Bank of Ghana, and electronic surveillance systems.
As GFIM celebrates its tenth anniversary under the theme ”Deepening Markets, Expanding possibilities,” analysts anticipate further growth in 2026. Improved fiscal discipline, declining inflation, and a strengthening currency are expected to bolster investor confidence. The primary challenge remains attracting greater corporate participation to diversify funding sources beyond government debt and expand investment opportunities within the market.