Ghana’s bond market has earned international recognition for its innovation and transparency, marking one of the most significant milestones in the country’s capital markets development.
The recognition highlights the market’s increasing significance as a hub for investment and economic growth.
Ms Abena Amoah, Managing Director of the Ghana Stock Exchange (GSE), said, “Investor confidence has surged, thanks to regulatory enhancements such as the introduction of clear GFIM rules and a robust oversight framework. Our market has become one of the most liquid in Sub-Saharan Africa, outside of South Africa and Nigeria.”
Ms. Amoah shared the status of the market at a media launch for the 10th anniversary of the Ghana Fixed Income Market (GFIM) in Accra, in a presentation titled: “A Decade of Progress, A Future of Possibilities.”
For a decade, she said GFIM had supported the government’s financing needs and provided the private sector access to both long and short-term debt capital.
GFIM had also achieved significant growth in investor participation, with pension fund assets on the market surpassing GHS90 billion.
Other key milestones highlighted include the development of a centralized, rules-based platform that has enabled efficient trading of public fixed-income securities.
The introduction of electronic bond trading platforms significantly enhanced market transparency, paving the way for substantial volume growth, she stated.
Since its inception, Ms Amoah said GFIM had traded over one trillion securities, with trading volume peaking at 230 billion in 2022.
She underscored GFIM’s commitment to product diversification, which had expanded beyond government securities to include corporate bonds, commercial papers, and green and sustainable bonds.
“This diversification has provided alternative financing channels for the private sector, enabling greater investment opportunities,” she explained.
However, the Managing Director said the market faced challenges, including macroeconomic pressures and limited corporate issuance.
“Despite the progress, we encounter hurdles such as exchange rate volatility and the prevailing dominance of government debt instruments,” she noted.
Reflecting on the past decade, Ms. Amoah shared valuable lessons learned, emphasizing the need for collaboration among regulators and investors, as well as the importance of strong trading infrastructure.
The GSE on the GFIM had also learnt that building a culture of fixed-income investing required continuous awareness and capacity-building, and that market reforms must be designed to withstand economic shocks, she said.
Ms. Amoah noted that deeper corporate market development, sustainable finance instruments, regional integration, and technology and innovation would shape the next decade of Ghana’s fixed-income market.
“With our vision for the next 10 years, we want to see 10 million Ghanaians from the current two million, opening securities accounts and actively trading on the GFIM market using technology and digital trading tools.
“We want to see 100 companies admitted on this market from the current seven to accelerate growth,” she said.
Ms. Amoah said they also anticipated seeing the government issue infrastructure bonds to develop roads and the energy sector, build schools and hospitals, among others, in partnership with Ghanaian investors.
“We envisage a market that is vibrant, trusted, deep, and solving Ghana’s financing challenges in partnership with all key stakeholders.
“GFIM’s 10-year journey reflects the story of transformation, resilience, and opportunity. From its modest beginnings to becoming a benchmark for transparency in Africa, GFIM has laid a solid foundation for the future.
“The next chapter promises to build on this legacy, driving inclusive growth, sustainable financing, and regional leadership,” she added.
Ms. Amoah acknowledged the lack of understanding of market operations among a significant portion of the public. She underscored the preparedness of the GSE and its stakeholders, including the media, to educate the public through various interventions.
“People are confident to do something when they understand it. So, bringing investment literacy to the doorstep of the Ghanaian is key. Until we bring the National Investment Quiz to the level of the National Science and Maths quiz, we still have lots to do,” she added.
