The Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has called for a deeper and more resilient domestic debt capital market to support sustainable economic growth and long-term development in Ghana.
Speaking as the keynote speaker at Fidelity Bank’s Debt Capital Market Conference in Accra on Thursday, the Governor said Ghana’s progress in restoring macroeconomic stability had created fresh opportunities to strengthen the country’s domestic capital market.
Dr. Asiama noted that renewed confidence in the government securities market was already evident in the reopening of the domestic bond market, declining Treasury bill yields and increased participation by institutional investors.
According to him, the developments presented an opportunity for Ghana to move beyond a debt market largely centred on government securities and build a more diversified market capable of mobilising capital for productive sectors of the economy.
The Governor identified three critical transformations needed to deepen Ghana’s debt capital market.
First, he called for greater diversification of issuers and financial instruments to provide investors with a wider range of opportunities while allowing businesses and other institutions to access long-term funding.
Second, he stressed the need for greater deployment of technology to improve efficiency, transparency and accessibility within the market.
Third, he advocated stronger mobilisation of domestic and diaspora savings into long-term investments that could finance productive economic activities.
Dr. Asiama emphasised that the success of Ghana’s debt capital market should ultimately be measured by its impact on the real economy and the lives of citizens.
“The proof of a deeper debt capital market will not be found only on an auction sheet. It will be found in the power project that was completed, the factory that expanded, the housing development that was financed, and the SME that finds room on a bank’s balance sheet because the right capital reached the right use.”
The Governor’s remarks underscore the growing importance of the debt capital market as Ghana seeks to consolidate economic recovery and create sustainable sources of financing for businesses and infrastructure.
A stronger domestic debt market could provide companies, financial institutions and other eligible issuers with alternatives to traditional bank financing, while giving investors opportunities to channel savings into longer-term productive investments.
Dr. Asiama reaffirmed the Bank of Ghana’s commitment to strengthening market infrastructure, restoring and maintaining investor confidence, and enhancing the resilience of the financial sector.
