President John Dramani Mahama has announced the government’s plans to reopen both the domestic and international capital markets, focusing on revitalising the bond market.
He emphasised that future borrowing will be linked to self-financing, commercially viable projects.
Speaking at the Ghana CEO Summit at the Kempinski Hotel, the President said, “We are working to reopen Ghana’s bond markets in collaboration with the IMF and our development partners, the Ghana Stock Exchange, and local banks.”
He further stated that his administration intended to empower Metropolitan, Municipal, and District Assemblies (MMDAs) to issue infrastructure and municipal bonds to finance development projects across various districts.
“We intend to empower MMDAs to issue infrastructure and municipal bonds secured against a portion of their district assembly’s common fund to fund infrastructural projects such as roads, schools, water systems, and local industry in the districts,” he explained.
President Mahama said this initiative was part of eight key measures his administration is implementing to help Ghana recover from its debt accumulation that has severely affected every aspect of the economy.
“The first is completing the IMF programme with discipline. We’ll continue the discipline in government expenditure and borrowing and work to achieve all targets under the Extended Credit Facility programme with the IMF,” he said.
“We expect to conclude the fourth review of the IMF programme in June 2025, with a target to exit at the end of the programme in 2026. Thereafter, we’ll participate in Article IV consultations and adopt the policy support instrument framework, signalling Ghana’s return to responsible non-borrowing engagement with the fund,” he added.
Highlighting the importance of linking borrowing to viable projects, he explained,
“Future borrowing will be linked to self-financing commercially viable projects, particularly by MDAs, MMDAs, and SOEs, ensuring value for money and sustainable repayment.”
On public investment management, he pointed out that, “The Auditor-General is completing an audit of areas and commitments, government commitments, and we expect to receive his report by the end of May. We’ll then commence to clear legitimate areas transparently and enforce commitment controls through GIFMIS and IPSAS-based accounting systems.”
He concluded by stressing, “New projects will be prioritised based on need, funding availability, and alignment with our national interest.”
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