Trading on Ghana’s fixed income market remained heavily concentrated in government securities, with Treasury bills accounting for more than half of all volumes traded, underscoring investors’ preference for short-term instruments.
Treasury bills made up 51.38 percent of total trading volume on the Ghana Fixed Income Market (GFIM), while government notes and bonds contributed 48.24 percent. Corporate bonds accounted for just 0.38 percent of activity, market data showed.
The dominance of Treasury bills reflects continued demand for relatively liquid, low-risk assets amid lingering economic uncertainty, despite improving macroeconomic indicators.
Government notes and bonds also saw strong participation as investors positioned for yield opportunities along the curve, particularly in the medium- to long-term tenors following recent adjustments to interest rates.
Corporate debt issuance and trading remained muted, highlighting persistent challenges in deepening Ghana’s private debt market, including credit risk concerns and limited issuer diversity.
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Background on Ghana’s Fixed income market
The GFIM was launched to improve transparency, price discovery and liquidity in Ghana’s domestic debt market, which plays a central role in financing government operations and supporting monetary policy transmission.
Following Ghana’s domestic debt restructuring programme, investor confidence has gradually returned, with government securities regaining prominence in institutional portfolios such as pension funds, banks and insurance companies.
However, analysts note that the marginal share of corporate bonds points to structural weaknesses in the capital market, including high borrowing costs and limited access to long-term funding for companies.
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Authorities have said broadening the corporate debt segment remains a priority, as deeper fixed-income markets are seen as critical to supporting private-sector growth and reducing reliance on government borrowing.
Ghana’s fixed income market plays a central role in financing government operations and transmitting monetary policy, with trading largely concentrated in government securities.
The market was disrupted in 2023 after the government launched a domestic debt exchange programme as part of an International Monetary Fund (IMF)-backed effort to restore debt sustainability amid a severe fiscal and balance-of-payments crisis.
Since the restructuring, authorities have gradually returned to the domestic market, relying heavily on Treasury bills to meet short-term funding needs while managing rollover risks. Improved inflation trends and a stabilising currency have helped revive investor confidence, particularly among banks, pension funds and insurance firms.
However, liquidity remains uneven, and participation is still skewed toward short-dated instruments, reflecting lingering caution over fiscal consolidation and interest-rate risks.
