News Guide Africa

Category: Economy and Finance

  • West Africa’s top tax leaders to gather in Ghana for landmark 15th anniversary summit

    West Africa’s top tax leaders to gather in Ghana for landmark 15th anniversary summit

    The West African Tax Administration Forum (WATAF) will convene its 8th High-Level Policy Dialogue (HLPD) and 23rd General Assembly in Accra, Ghana, from September 15–19, 2026.

    Hosted by the Ghana Revenue Authority (GRA), the flagship annual events coincide with the 15th anniversary of the regional tax body.

    Held under the theme “Building Stronger Tax Administrations for Revenue Mobilisation and Sustainable Development,” the policy dialogue will bring together Finance Ministers, tax agency heads, international experts, and development partners to explore innovative solutions for financing development amid digital transformation and global tax reforms.

    Since its founding in 2011, WATAF has trained over 5,000 tax officials across West Africa. Between 2024 and mid-2026 alone, the Forum delivered 26 regional training programmes reaching nearly 2,000 officials on key issues like the digital economy and diagnostic tools. It has also established partnerships with over ten regional and global institutions, including ECOWAS, UEMOA, the African Union, and the World Bank.

    Reflecting on the 15-year landmark, WATAF Executive Secretary Jules Tapsoba highlighted the organization’s core mission and vision for the future:

    “Fifteen years ago, WATAF was established on the belief that stronger cooperation would build stronger tax administrations. Today, that vision is reflected in thousands of tax officials trained, stronger regional partnerships, growing institutional influence and a shared commitment to helping our member countries mobilise the domestic revenues needed for sustainable development. The next fifteen years must take us even further.”

    WATAF Chairperson and Director General of Taxes of Burkina Faso, Ms. Eliane Talato Djiguemde, emphasized the need for continued collaboration across member states:

    “The progress WATAF has made over the past fifteen years demonstrates what can be achieved when tax administrations work together. As WATAF reaches this milestone, we must build on these achievements by strengthening regional cooperation, embracing innovation and investing even more in the people and institutions that drive domestic revenue mobilisation across West Africa.”

    As the host country, Ghana reiterated its commitment to supporting regional growth through modern, resilient tax systems.

    “Ghana is honoured to host WATAF’s 8th High-Level Policy Dialogue and 23rd General Assembly as the events coincide with fifteen years since the Forum’s establishment,” said Mr. Anthony Kwasi Sarpong, Commissioner-General of the Ghana Revenue Authority. “We look forward to welcoming tax leaders and development partners to Accra for meaningful discussions that will strengthen domestic revenue mobilisation, promote innovation and deepen collaboration in building stronger tax administrations across West Africa.”

    In addition to the policy dialogue, the week-long gathering will feature the 23rd General Assembly of WATAF’s 15-member tax administrations and a Development Partners and Donors Roundtable designed to deepen technical cooperation across the region.

     

  • Ethical Financing Strategy: Ghana urged to adopt Asset-Backed bonds to fund critical national infrastructure

    Ethical Financing Strategy: Ghana urged to adopt Asset-Backed bonds to fund critical national infrastructure

    As West African nations seek innovative avenues to bridge widening infrastructure deficits without deepening national debt, the Islamic Finance Research Institute of Ghana (IFRIG) is calling on the government to embrace non-interest, asset-backed bonds as a primary vehicle for public development.

    Dr. Shaibu Ali, Director-General of IFRIG, argues that non-interest financial structures often referred to as Sukuk present Ghana with a transformative opportunity to build essential hospitals, schools, and transportation networks through direct asset ownership and shared risk.

    “Traditional sovereign debt relies on compound interest that often places an unsustainable burden on public revenues,” Dr. Ali noted. “Non-interest instruments offer a fundamentally different path. They link capital deployment directly to physical assets, ensuring that funds are tied to real-world development rather than speculative debt.”

    Unlike conventional borrowing, where debt accumulates regardless of project outcomes, non-interest bonds grant investors partial ownership or usage rights in tangible public infrastructure, distributing returns based on actual economic activity and performance.

    “This is about creating built-in transparency and accountability,” Dr. Ali emphasized. “When an investor backs a non-interest bond, they are funding a specific road, hospital, or university expansion. The financial returns flow from the utility and productivity of that asset, which naturally safeguards public resources from misallocation.”

    Dr. Ali pointed out that global capital markets have seen a massive rise in ethical and ESG (Environmental, Social, and Governance) investments, leaving a vast pool of global capital untapped by African nations reliant solely on high-interest Eurobonds.

    “There is a multi-trillion-dollar global ethical finance pool looking for viable, real-sector opportunities,” Dr. Ali concluded. “By establishing the regulatory frameworks to issue non-interest bonds, Ghana can diversify its sovereign financing options, attract new international and domestic investors, and build the foundation for resilient, long-term national growth.”

     

  • Investor confidence soars as PETROSOL’s maiden GH¢100m bond draws GH¢178m in bids

    Investor confidence soars as PETROSOL’s maiden GH¢100m bond draws GH¢178m in bids

    Indigenous oil marketing firm PETROSOL Platinum Energy PLC has recorded a resounding vote of confidence from institutional investors after its maiden GH¢100 million corporate bond issuance was oversubscribed by 78 percent, attracting total bids worth GH¢178.07 million.

    The historic market entry saw PETROSOL list its Series 1 and Series 2 Notes on the Ghana Fixed Income Market (GFIM) of the Ghana Stock Exchange (GSE). The offer represents the first tranche under the company’s newly approved GH¢200 million Note Issuance Programme sanctioned by the Securities and Exchange Commission (SEC) and the GSE.

    Investor appetite heavily surpassed expectations across both tranches. The four-year Series 1 Note attracted GH¢114.28 million in bids against its GH¢50 million target a 229 percent subscription rate from 66 investor clients. Meanwhile, the five-year Series 2 Note drew GH¢63.8 million against a GH¢50 million target, achieving a 128 percent subscription rate from 18 investor clients.

    The strong demand comes on the heels of a challenging macroeconomic climate marked by high inflation and tight domestic liquidity.

    Speaking at the listing ceremony, Daniel Acheampong, Board Chairman of PETROSOL Platinum Energy PLC, highlighted that the success was anchored on years of rigorous corporate governance overhauls.

    “This listing is the result of nearly three years of deliberate preparation by the Board and Management, strengthening our governance, our reporting and our discipline so that when we came to the market, we would come as a credible institutional counterparty, not merely a hopeful borrower,” Acheampong said. “We are proud to bring PETROSOL to the Ghana Fixed Income Market of the Ghana Stock Exchange on the strength of that credibility, and the Board will hold Management to the same discipline in ensuring these proceeds are applied exactly as promised to our investors.”

    PETROSOL plans to utilize the capital to shift its fuel procurement strategy from credit terms to cash purchases, significantly cutting sales costs, expanding profit margins, and driving retail station expansion across the country.

    Chief Executive Officer of PETROSOL, Michael Bozumbil, reflected on the firm’s growth trajectory and assured investors of strict capital deployment.

    “We built this company from a small petroleum business consulting practice into one of Ghana’s highly respected OMC brands, and we did it during some genuinely difficult years for the Ghanaian economy,” Bozumbil noted. “A combined 178% subscription on our first issuance is a strong vote of confidence from the investment community, and Management is fully committed to deploying this capital exactly as set out to investors: working capital enhancement, cash-basis procurement and retail network expansion, nothing else.”

    Market leaders also lauded the deal as a landmark moment for Ghana’s private sector debt market.

    Managing Director of the Ghana Stock Exchange, Abena Amoah, noted that the transaction underscores the capacity of the local capital market to finance corporate growth beyond government treasury instruments.

    In his keynote address, Chief Executive Officer of the Ghana Investment Promotion Authority (GIPA), Simon Madjie, urged corporate Ghana to leverage capital markets while emphasizing post-listing accountability.

    “PETROSOL’s listing demonstrates how Ghanaian businesses can use the capital market to access long-term funding, strengthen governance and broaden their sources of finance,” Madjie remarked, reminding the company that public market participation requires sustained transparency, robust financial controls, and risk management.

    The issuance was lead-arranged by a syndicate comprising Absa Bank Ghana Ltd and Databank Brokerage Ltd, supported by KPMG as reporting accountants and Fidelity Bank Ghana Ltd as note trustee. PETROSOL intends to return to the capital market to raise the remaining GH¢100 million in line with its long-term expansion blueprint.

     

  • GoldBod orders full in-country processing of gold exports in decisive downstream push

    GoldBod orders full in-country processing of gold exports in decisive downstream push

    By Adnan Adams Mohammed

     

    Ghana is officially shutting the door on raw mineral exports, setting up a high-stakes showdown for foreign buyers and local aggregators as the nation asserts full domestic control over its most lucrative natural resource.

    Starting September 1, 2026, the Ghana Gold Board (GoldBod) will block the shipment of all unrefined gold doré out of the country. The aggressive regulatory overhaul requires all licensed Self-Financing Aggregators (SFAs) to process their yields entirely at approved domestic refineries before shipping a single ounce overseas.

    A Masterstroke for Economic Sovereignty

    Rather than viewing the move as a simple administrative update, industry watchers see it as a bold geopolitical play to force international bullion markets to build value on Ghanaian soil.

    “The biggest change is that Ghana is moving primarily from being just an exporter of raw minerals to becoming a country that captures more value from its gold,” declared GoldBod Media Relations Officer Prince Kwame Minkah. “Instead of exporting doré and allowing refining and certification as well as other value-generating activities to happen elsewhere, we want it to happen right here in Ghana.”

    By holding the line on raw exports, GoldBod aims to secure massive downstream economic dividends that have historically slipped into off-shore accounts.

    “That means jobs, refining capacity, greater transparency, better traceability, stronger foreign exchange retention, and ultimately greater economic value for my country, Ghana,” Minkah asserted. “This is in line with the vision of the President of Ghana, His Excellency John Dramani Mahama, whose aim is to ensure that we achieve zero raw mineral exports by the year 2030. So we’ve started.”

    The government’s crackdown builds on momentum from recent supply chain interventions.

    “GoldBod says as far as our anti-smuggling interventions are concerned, we’ve been able to help significantly ensure that large volumes of gold are retrieved from the informal economy, with 170 tonnes absorbed through formal channels over the past one and a half years,” Minkah added, signaling that the state now has the leverage to tighten its grip on the market.

    Zero Tolerance for Non-Compliance

    Under powers granted by the Ghana Gold Board Act, 2025 (Act 1140), GoldBod’s Compliance Directorate has given aggregators until August 31 to rewrite existing foreign contracts to reflect mandatory local refining.

    Starting September 1, export paperwork will be denied until local refineries verify that all assaying, domestic refining fees, and processing standards have been fully satisfied.

    In a stern warning issued to market participants, GoldBod made its zero-tolerance policy explicit:

    “Failure to comply with this directive, including the export or attempted export of unrefined gold contrary to this Notice, shall constitute a breach of the conditions of an SFA licence.”

     

    Defiant exporters risk swift administrative penalties, instant export bans, and the permanent cancellation of their operating licenses. The message to global commodity markets is clear: adapt to Ghana’s terms, or lose access to its gold.

     

  • Finance experts call for calm over Non-Interest Banking debate …Stakeholders urged to prioritize governance and legal oversight over religious stereotyping

    Finance experts call for calm over Non-Interest Banking debate …Stakeholders urged to prioritize governance and legal oversight over religious stereotyping

    By Adnan Adams Mohammed

     

    Financial analysts and religious scholars are calling for fact-based public engagement following rising debate over the inclusion of Islamic scholars in non-interest banking frameworks.

    Stakeholders argue that framing religious expertise as a threat misrepresents standard regulatory procedures and risks undermining social cohesion.

    Non-interest banking operates under rigorous oversight across several global jurisdictions, including the United Kingdom, Malaysia, South Africa, and Kenya. In these markets, experts in Islamic jurisprudence provide technical advisory support without superseding central bank governance.

    Clarifying Technical Roles

    Comparative religion experts emphasize that the role of an Islamic scholar in finance is analytical rather than political, drawing parallels to Christian theologians working in ethics.

    “Islamic scholars and Bible scholars perform strictly comparable interpretive roles,” stated Dr. Ibrahim Mensah, a senior lecturer in religious studies. “A religious title alone should never be treated as a risk factor. Evaluation must depend on professional conduct, adherence to the law, and institutional governance.”

     

    In regulated financial systems, advisory board members do not bypass supervisory requirements. Ghana’s banking regulatory framework mandates that all governance appointments satisfy strict “fit-and-proper” standards set by the central bank.

    “The appointment of any technical expert or advisory board member does not override national banking law,” noted financial analyst Elizabeth Kwarteng. “Institutional roles remain strictly bounded by regulatory mandates. Misinformation creates unnecessary public anxiety and distracts from substantive questions of market demand and risk management.”

     

    Key Recommendations for Stakeholders

    To protect market confidence and prevent reputational damage, industry observers advise a proactive response from regulators and institutions:

    ● Strengthen Public Education: Regulators must clearly explain non-interest financial products to demystify operations under existing supervisory frameworks.

    ● Emphasize Governance Safeguards: Public communications should highlight the specific qualifications, limits, and vetting procedures required for advisory members.

    ● Maintain Neutrality in Hiring: Professional appointments must evaluate competence, integrity, and regulatory compliance rather than religious affiliation.

    ● Counter Misinformation Early: Financial bodies should promptly address inaccurate assertions using evidence-backed facts to preserve social cohesion.

    Sustained growth in inclusive financial services relies on objective evaluation. Focusing on governance, consumer protection, and financial viability ensures the banking sector remains stable, competitive, and secure.

     

  • Ghana’s mining reforms trigger lease clash as Gold Fields demands fair treatment

    Ghana’s mining reforms trigger lease clash as Gold Fields demands fair treatment

    By Adnan Adams Mohammed

     

    Tensions between the Government of Ghana and international mining firms have escalated following Cabinet’s endorsement of sweeping legal reforms to the country’s mining framework.

    The legislative review of the Minerals and Mining Act, 2006 (Act 703) aims to tighten resource governance and end long-term land holding, even as major operators like Gold Fields push back against potential sovereign risks.

    Under the proposed overhauls, Ghana is significantly shortening the initial duration of large-scale mining leases.

    Speaking on behalf of the Minister for Lands and Natural Resources at the commissioning of the Minerals Commission’s new Ashanti Regional Office in Kumasi, Deputy Minister Alhaji Yusif Sulemana announced that Cabinet has approved capping initial mining lease durations at 20 years, down from the previous 30-year limit.

    “The maximum duration for mining leases is being reduced from 30 years to 20 years,” Sulemana stated, citing empirical data showing that modern mines often deplete resources faster, rendering 30-year leases susceptible to speculative land hoarding.

    Minister for Lands and Natural Resources Emmanuel Armah Kofi Buah reinforced the policy rationale during recent industry engagements, noting that long leases have locked up vast areas of mineral-rich land without active development.

    “Twenty years, whatever profit you want to make, you want to make it,” Buah argued. “The whole of Ghana has basically been given out and people are just sitting on concessions for 30, 40 years. They are not doing anything. They are waiting for the next big investor to come so they can cash out.”

    Beyond lease reductions, the new framework completely abolishes tax-shielding development agreements that previously granted long-term tax exemptions to foreign shell companies, and replaces reconnaissance and prospecting rights with a single Exploration License capped at five years.

    Gold Fields Issues Warning Over Tarkwa Lease

    The statutory shifts come amidst growing uncertainty for existing major operators seeking long-term operational guarantees.

    South African mining giant Gold Fields revealed it has received no formal response to its commercial proposal submitted to the Ghanaian government to secure a 25-year extension for its flagship Tarkwa mine, whose current leases expire in April 2027.

    During an international media briefing on Tuesday following the company’s first-half financial results, Gold Fields Chief Executive Officer Mike Fraser criticized recent fiscal policy changes in Ghana, arguing that the government is treating the mining industry as an “easy target”.

    “What we’ve seen in Ghana is certainly, in some respects, unhelpful because certainly we think that it starts placing Ghana in a fairly uncompetitive position for inward investment,” Fraser remarked. “Despite that, this is a country that’s under some financial stress and therefore saw the sector as an easy target.”

    Addressing shareholders and reporters, Fraser appealed for an equitable resolution while confirming the company would defend its assets if negotiations falter.

    “What we are saying here is that this is a consideration, so treat us fairly when it comes to our lease agreement,” Fraser stated. “This is the last option that we will pursue, but we needed to make it very clear to our shareholders that if required, we certainly would take those pathways in order to try and protect value.”

    Fraser added that the company remains hopeful that legal action will not be necessary and that sensible consideration will be given to their application, which promises fresh investments to unlock long-term economic contributions for local communities and state revenues.

    Sovereign Risk vs. Resource Nationalism

    Industry analysts note that while Ghana’s legislative overhaul is designed to curb land speculation, promote community development, and maximize domestic revenue, the friction with established miners underlines growing sovereign risk concerns.

    With the amended Minerals and Mining Bill headed to Parliament, the upcoming legislative debates will be pivotal in determining whether Ghana can balance national wealth protection with maintaining a competitive environment for foreign direct investment.

     

  • ADB-UCC Open New Chapter of Institutional Collaboration

    ADB-UCC Open New Chapter of Institutional Collaboration

    The Agricultural Development Bank (ADB) and the University of Cape Coast (UCC) have signalled their commitment to deepening institutional cooperation following a high-level engagement between the leadership of the two institutions.

    The engagement took place when the Vice-Chancellor of UCC, Prof. Dennis Worlanyo Aheto, led a delegation from the University to pay a courtesy call on the Managing Director of ADB PLC, Edward Ato Sarpong, and the Bank’s Deputy Managing Director in charge of Services, Prof. Ferdinand Ahiakpor.

    The UCC delegation included Mr. Gideon Enoch Abbeyquaye (Esq.), Registrar, and Mr. George Amfo-Antiri, Director of Finance.

    The visit provided an important platform for the two institutions to strengthen their relationship and explore opportunities for mutually beneficial cooperation, particularly in areas that could leverage the respective strengths of academia and the financial services sector.

    Welcoming the delegation, the ADB MD, Edward Ato Sarpong expressed appreciation to the UCC leadership for the visit and underscored the importance of building strong institutional partnerships. He noted that collaboration between the banking sector and academia could create opportunities for knowledge exchange, human capital development, and innovative solutions that contribute to national development.

    He reaffirmed ADB’s commitment to building sustainable relationships with reputable institutions and expressed the Bank’s readiness to explore practical areas of cooperation with UCC.

    Prof. Ferdinand Ahiakpor also highlighted the importance of stronger academia-industry collaboration, noting that closer engagement between universities and businesses could help bridge the gap between academic knowledge and industry requirements.

    For his part, Prof. Dennis Worlanyo Aheto expressed appreciation to the management of ADB for the warm reception and emphasised UCC’s interest in strengthening its relationship with the Bank.

    He indicated that the visit was to first of all, thank and appreciate ADB for sending a delegation from Accra to congratulate him when he was appointed as the Vice-Chancellor of the University.

    On institutional partnership, Prof. Aheto emphasised that closer cooperation between the two institutions could create opportunities for knowledge sharing, capacity building and other initiatives of mutual benefit.

    The meeting also afforded the leadership of both institutions, an opportunity to exchange perspectives on institutional development and the important contribution that strategic partnerships can make towards developing human capital and supporting Ghana’s socioeconomic advancement.

    The courtesy call marks a new chapter in the relationship between ADB and UCC, with both institutions expressing their willingness to strengthen the engagement and explore practical opportunities for deeper collaboration.

     

  • Addressing Misinformation Around Islamic Scholars and Non-Interest Banking- Advice for Cohesion

    Addressing Misinformation Around Islamic Scholars and Non-Interest Banking- Advice for Cohesion

    By Dr Abdul Rahman Muntaka Mohammed (PhD) —Kasoa Economist

     

    This write up examines the concern raised around Islamic scholars, Shariah expertise and non-interest banking in Ghana by some individuals. Islamic scholars should be understood as religious and subject-matter experts comparable to Bible scholars or theologians, rather than as threats to public order. It should be noted further that Ghana’s banking environment is regulated, professional appointments must meet governance standards, and public discourse should avoid panic-driven misinformation.

    I write in response to some claims that portray Islamic scholars as dangerous or unsuitable for governance roles in financial institutions. It argues that such claims ignore the presence of Islamic scholarship in Ghana and other countries where non-interest banking operates within regulated financial systems. My concern is that misinformation may create unnecessary public anxiety and undermine informed discussion about financial sector development. The following are important to note:

    1. Islamic scholars and Bible scholars perform comparable interpretive roles. Islamic scholars are experts in Islamic teachings and practice, while Bible scholars or theologians provide similar interpretation within Christianity. Both groups may contribute to education, ethics, social guidance and institutional understanding.

    2. Religious title alone should not be treated as a risk factor. The report finds that no scholar, imam, pastor, bishop or theologian should be judged as a threat merely because of religious affiliation. This concern is only justified where conduct violates law, institutional rules or accepted democratic norms.

    3. Non-interest banking exists in many regulated markets. Countries such as Malaysia, Singapore, South Africa, Uganda, Nigeria, United Kingdom, Uganda and Kenya have non-interest banking, capital market and insurance arrangements that include Islamic finance expertise. This demonstrates that such expertise can operate within modern regulatory frameworks.

    4. Ghana’s banking sector is subject to regulation and governance controls. The appointment of scholars or professionals to advisory structures does not override banking law, supervisory requirements or fit-and-proper expectations. Institutional roles remain bounded by regulation and mandate.

    5. Public communication should avoid panic and misinformation. Statements portraying Islamic scholars as inherently dangerous may mislead the public, weaken social cohesion and distract from substantive questions of competence, integrity and regulatory compliance.

    For financial regulators and institutions, the discussion highlights the need for clear public education on non-interest banking, advisory council mandates and the role of religious or technical experts. Poor communication can create reputational risk, regulatory misunderstanding and unnecessary distraction.

    For the broader business environment, misinformation may discourage investment, slow product development and undermine confidence in inclusive financial services. A fact-based approach helps stakeholders assess non-interest banking on its merits: governance, compliance, market demand, consumer protection and financial sustainability.

    Recommendations

    1. Strengthen public education. Regulators and financial institutions should explain non-interest banking in simple language, emphasizing that it operates within Ghana’s legal and supervisory framework.

    2. Communicate with governance safeguards. Public statements should clarify the qualifications, responsibilities and limitations of advisory council members, including applicable fit-and-proper standards.

    3. Promote religious neutrality in appointments. Professional appointments should be assessed on competence, experience, integrity and compliance with institutional mandates rather than religious identity.

    4. Challenge misinformation early. Stakeholders should respond promptly to inaccurate claims with evidence-based communication that protects both public confidence and social cohesion.

    Conclusion

    I conclude that public concern about Islamic scholars in non-interest banking should be addressed through facts, not panic. Islamic scholars, like Bible scholars and other subject-matter experts, can serve in professional roles when they meet the required standards of competence, integrity and regulatory compliance. Ghana’s financial sector should therefore focus on governance, consumer protection and sound regulation rather than religious stereotyping.

     

  • Ghana shifts investment focus to local value creation as 2025 report reveals $2.6bn in FDI

    Ghana shifts investment focus to local value creation as 2025 report reveals $2.6bn in FDI

    By Adnan Adams Mohammed

     

    The government is pivoting its national investment strategy away from basic capital inflows toward sustainable local production, enterprise development, and long-term job creation, the Minister for Trade, Agribusiness and Industry, Hon. Elizabeth Ofosu-Adjare, MP, announced on Friday.

    Speaking at the Bank of Ghana during the official launch of the 2025 Annual Investment Report published by the Ghana Investment Promotion Authority (GIPA), the Minister emphasized that the true impact of foreign direct investment (FDI) must be measured by its tangible footprint within the domestic economy.

    “Are they expanding our productive capacity, creating opportunities for Ghanaian enterprises, strengthening value chains and opening new markets for what we produce?” Hon. Ofosu-Adjare asked, noting that this shift captures the core of Ghana’s industrial transformation.

    According to the report, Ghana secured approximately $2.6 billion in FDI across more than 250 new and existing projects in 2025, driven significantly by reinvestments from established firms. In total, the report outlines nearly $12 billion in announced and pipeline investments.

    “Investment should leave a visible economic footprint in Ghana through expanded production, stronger local enterprises, productive jobs and greater access to regional and international markets,” the Minister stressed, pointing to priority sectors such as agro-processing, pharmaceuticals, textiles, and automotive manufacturing.

    To support this growth, government is pursuing critical legislative reforms, including the Business Regulatory Reform Bill and new provisions establishing GIPA to modernize investor facilitation. The Minister also urged expanding companies to leverage the African Continental Free Trade Area (AfCFTA) by partnering with local suppliers and developing the local workforce.

    Key stakeholders at the launch echoed optimism regarding the country’s economic trajectory:

    ● Chief Executive Officer, GIPA: Commended the Trade Ministry’s efforts in driving manufacturing which led in total project count while noting that mining services recorded the highest overall FDI value.

    ● Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana: Described the findings as a strong reflection of renewed investor confidence, stating the report “goes beyond statistics and provides insight into the direction of investment and economic growth.”

    The launch concluded with the signing of a Memorandum of Understanding (MOU) between GIPA and the Oxford Business Group (OBG) to launch a joint global investment campaign promoting Ghana’s commercial opportunities.

     

  • Ghana’s sovereign risk drops as debt service falls below 20%

    Ghana’s sovereign risk drops as debt service falls below 20%

    By Adnan Adams Mohammed

     

    Ghana’s sovereign risk profile received a significant boost as the Finance Ministry reported a dramatic contraction in its debt-servicing absorption rate, dropping from a high of over 50% of national revenue to under 20%.

    For institutional holders of Ghanaian sovereign paper and frontier market investors, the sharp yield-to-revenue adjustment signals a structural improvement in debt sustainability, expanding liquidity buffers and mitigating near-term default risks.

    “In the past, Ghana spent over 50 percent of its national revenue on servicing debt,” stated Finance Minister Dr. Cassiel Ato Forson. “This left less money for schools, hospitals, roads, and other essential infrastructure. Today, I am proud to say that we have made significant progress. We now spend less than 20 percent of our revenue on servicing debt!”

    The improved debt profile is expected to enhance primary fiscal balances, giving the government greater flexibility to deploy capital into high-multiplier domestic investments without increasing its debt footprint.

    Fund managers view the reduction as a key operational de-risking event for the Ghanaian economy.

    “A debt-service ratio below 20% dramatically alters the risk-reward equation for institutional capital,” noted an Accra-based senior portfolio manager. “It creates real capacity for fiscal consolidation, stabilization of domestic credit markets, and greater predictable support for the cedi.”

    The lower service burden allows the government to focus on fiscal prudence, medium-term revenue mobilization, and capital expenditure without over-relying on secondary market borrowing.

    Market participants will monitor upcoming budget execution reports and IMF program benchmarks to evaluate the duration of these revenue gains and their long-term impact on sovereign yield curves.