IMF Warns Ghana to Rebuild Enough Investor Confidence IMF Resident Representative in Ghana, Dr Adrian Alter

Ghana is facing renewed pressure from international investors to return to the global capital markets as improving economic conditions, credit rating upgrades and stronger international reserves revive interest in the country’s investment prospects.

However, the International Monetary Fund (IMF) is urging caution, warning that Ghana must prioritise rebuilding investor confidence and strengthening its credit standing before considering a return to international borrowing.

The debate has gained momentum during the IMF and World Bank meetings in Bangkok, Thailand, where offshore investors, fund managers and international banks have expressed interest in Ghana raising funds through Eurobonds and syndicated loans.

Despite the growing appetite for Ghanaian debt, the government insists it is in no hurry to borrow from international markets, maintaining that consolidating economic stability and improving the country’s credit rating remain its immediate priorities.

The competing positions have placed Ghana’s economic recovery under renewed scrutiny, with policymakers facing the challenge of balancing investor interest against the risks of accumulating external debt too quickly after the country’s recent debt restructuring.

Ghana’s improving economic conditions have encouraged some international investors to reconsider the country’s prospects following its debt default and subsequent restructuring.

Stronger international reserves, improving credit ratings and efforts to maintain fiscal discipline have contributed to renewed interest in Ghana as an investment destination.

Some fund managers believe the country’s proposed Policy Coordination Instrument (PCI) programme with the IMF could help preserve the progress made under the existing economic recovery programme.

The PCI is a non-financing arrangement designed to support economic policy coordination and reinforce confidence in a country’s policy framework.

“With Ghana being under this PCI Programme, we don’t see things deteriorating or Ghana departing from the current economic gains soon,” a fund manager noted.

The renewed interest also reflects investors’ search for better returns amid comparatively lower yields in the United States.

Views expressed during the Bangkok engagements suggest that a Ghanaian Eurobond could offer an average yield of about 8%, compared with returns of around 5% or lower on investments in the US market.

Such returns could attract investors seeking higher yields, but they would also represent a potentially expensive borrowing cost for Ghana.

The government must therefore weigh the benefits of renewed access to international financing against the long-term implications of servicing external debt at relatively high interest rates.

Despite the growing interest, the government has maintained that returning to the international capital markets is not an immediate priority.

Dr Theo Achampong, Technical Advisor to the Finance Minister, confirmed that international borrowing had featured in discussions with international banks but stressed that the government was focused on consolidating recent economic gains.

“We want to continue stabilising things for now, build strong international reserves,” he said.

“As we speak, there is no motivation to go to the international capital market.”

Dr Achampong explained that the government wants to improve Ghana’s credit ratings and eventually secure investment-grade status before seriously considering a return to international borrowing.

“When you look at our borrowing needs over the one year, the capital market is not an option,” he added.

Finance Minister Dr Cassiel Ato Forson has similarly ruled out international capital market financing under the government’s plans for 2026.

Speaking at a joint press conference with a visiting IMF mission during the latest review of the Extended Credit Facility programme, Dr Forson said any future decision to borrow internationally would be communicated to the public.

“We are not in a hurry to go onto the international capital markets, and if we find a need to go to the international capital markets, we will accordingly inform the people of Ghana.”

The 2026 Budget makes no provision for financing through international capital markets, reinforcing the government’s decision to avoid fresh external borrowing through this channel during the year.