Analysts cautiously optimistic about Ghana’s Bond Market return

Financial analysts are cautiously optimistic about Ghana's return to the bond market. However, they warn that success depends on the government's commitment to cutting spending and controlling inflation.

Joe Jackson, CEO of Dalex Finance, notes that current treasury bill rates are encouraging. He believes a credible return to local bonds relies on fiscal discipline from the government.

"We can invest in local government bonds again," he said. "But we must monitor inflation and the government's spending cuts." He emphasized the need to keep the cedi stable as well.

Jackson pointed out that Ghana should reduce its reliance on treasury bills. These bills were meant for short-term financing, not long-term borrowing solutions.

"T-bills were designed for temporary cash flow issues," he explained. "They should not be used for development funding or other long-term needs."