President John Dramani Mahama
Ghana is poised to lead emerging markets in dollar-bond returns this month, delivering renewed investor confidence in the country’s economic direction under the leadership of President John Dramani Mahama.
According to Bloomberg, dollar-denominated bonds from Ghana have posted an impressive 8.7% return in May, far outpacing the 0.4% average return recorded across emerging markets.
This development marks a significant rebound for Ghana, which defaulted on its external debt in 2022 and turned to the International Monetary Fund (IMF) for assistance.
The turnaround, according to the report, is being driven by strong export performance, especially in gold and cocoa, as well as a series of prudent fiscal measures introduced by the current government.
“Simply put, Ghana is back,” Head of Research and CEO of Emerging and Frontier Capital, Kato Mukuru is quoted to have said by Bloomberg.
“Trends have remained positive and this must have supported the rally in the bonds,” Mukuru added.
Bloomberg also noted that the Ghanaian economy is benefiting from climbing gold exports, sustained trade surpluses, and slowing inflation, which together are helping to stabilise the Ghanaian cedi and boost investor confidence in the country’s sovereign bonds.
Additionally, inflation, which peaked at 54% in December 2022, has dropped significantly to 21.2% in April 2025 according the Ghana Statistical Service (GSS), following government efforts to curb public spending and restore macroeconomic stability.
President John Mahama, who returned to power after winning the elections at the end of 2024, has focused on cutting government expenditure and narrowing fiscal deficits through stringent economic policies.
MA