By Toma Imirhe
In a move aimed at addressing the nation’s pressing infrastructure deficit, the Government of Ghana has announced plans to issue GHc10 billion in infrastructure bonds across two tranches in 2026.
The bonds are expected to play a pivotal role in financing key infrastructure projects, including road networks, energy generation, and urban housing.
The bonds will be offered in two tranches of GHc5 billion each, with the first set to be issued in the second quarter of 2026 and the second in the final quarter of the year.
Details of the offering, along with other domestic bond issuances are expected to be published in an issuance calendar later this month.
The issuance is designed as an integral source of financing for the President John Dramani Mahama administration’s Big Push initiative which aims to mobilize US$10 billion for major infrastructural projects. The government has already scaled up funding, with the Finance Ministry allocating GHc30 billion for the plan in the 2026 budget more than double the GHc13.8 billion earmarked last year.
Said a Ministry of Finance official on condition of anonymity: “The GHc10 billion infrastructure bonds will not only address immediate needs but also lay the foundation for sustainable development for future generations. We are particularly focused on projects that will generate long-term returns and boost productivity.”
It is believed that the funds raised will be directed towards critical sectors such as road construction and energy infrastructure although government has not formally provided a list of projects to be financed with the proceeds of the issuance.. These investments are expected to improve the ease of doing business in Ghana, enhance regional connectivity, and create much-needed jobs.
However Economy Times learnt that one of the projects would entail the completion of the Eastern Corridor Road Project, which is expected to link northern Ghana with the southern regions.
The GHc10 billion bonds are expected be structured as 10-year and 15-year instruments, offering attractive returns to institutional investors, including pension funds, insurance companies, and commercial banks. According to (unconfirmed) sources at the Ministry of Finance, the first tranche of GHc5 billion will be offered at a coupon rate of 13.5%, while the second tranche will likely have a slightly higher rate, reflecting market conditions closer to the issuance date.
The bonds will be tax-exempt for both local and foreign investors, a move designed to attract a broad spectrum of institutional and individual investors. The repayment of the bonds will be backed by the revenue generated from government infrastructure projects, with a strong focus on projects expected to generate significant returns, such as the tolls on new road networks and the revenues from energy production.
The government has outlined a robust strategy for amortizing the bonds. Payments will be made from a combination of revenues from the infrastructure projects funded by the bonds, as well as government fiscal resources. In particular, tolls and other user fees will be key contributors to the repayment structure. Analysts believe this approach ensures that the burden on taxpayers will be minimal, while also generating a consistent stream of revenue to service the debt.
The Bank of Ghana and the Ghana Stock Exchange will manage the bond issuance, with the issuance process being overseen by the Securities and Exchange Commission
Investors have expressed keen interest in the bond issuance, with some analysts optimistically predicting that the bonds will be oversubscribed, given the government’s focus on high-yielding infrastructure projects. Kwame Boadi, an economist at Ghanaian Investments, notes that infrastructure bonds have become increasingly popular in emerging markets due to their long-term stability and the attractive returns they offer.
“Investors are always looking for instruments that offer stable returns, and with the government’s strong backing and the underlying infrastructure projects expected to generate reliable cash flows, these bonds are highly appealing,” Boadi asserts.
But Ghana is seeking to leverage investor confidence as it recovers from a debt crisis under the previous administration which culminated in a 2022 default that cut the country off capital markets. Recently however, investor confidence has strengthened with yields on Ghana’s cedi bonds due in 2039 falling more than 10 percentage points to around 16%.
However most analysts point out that to ensure the success of the Infrastructure Bonds, the government must go beyond high-interest rates and implement robust strategies to fully re-establish confidence:
The government must provide absolute legal and fiscal assurance that the funds raised will only be used for the stated infrastructure projects and cannot be restructured or accessed for general budget needs. The establishment of a Sinking Fund specifically for these bonds could guarantee timely coupon payments and principal redemption.
Some analysts argue that continuous and detailed communication about the bond’s performance, the use of the funds, and the progress of the underlying infrastructure projects is vital. Regular, accessible updates will show investors that the government is fully committed to transparency and accountability.
Crucially, the government must maintain a flawless record of timely coupon payments on all existing debt, particularly the new bonds issued under the Domestic Debt Exchange Programme, DDEP. Recent payments made to DDEP bondholders are already helping to restore market confidence, but this discipline must be sustained over the long term.
The International Monetary Fund has welcomed Ghana’s efforts to deepen domestic capital markets but cautioned that infrastructure bonds must align with debt-sustainability goals. An IMF spokeswoman, in an emailed response to an enquiry from Bloomberg, said: “The IMF welcomes steps to deepen the domestic capital markets and is engaging with the government on reopening the local bond market in a prudent, carefully calibrated and sequenced manner. If well designed and directed to high-return projects, infrastructure bonds can support growth and private sector activity.”
The GHc10 billion bond issuance is expected to be a critical step in addressing Ghana’s infrastructure challenges and supporting the country’s long-term economic development.
