Translate To All Languages

Ghana regains lustre for investors ahead of Dec. 7 election despite debt woes

Ghana holds presidential and parliamentary elections on December 7 amid concerns over its rising debt pile, but that has not stopped some investors.

 


Ghana holds presidential and parliamentary elections on December 7 amid concerns over its rising debt pile, but that has not stopped some investors from buying up its bonds on a bet that the next government will move to repair the public finances.

The two main presidential candidates are promising to spend more if they win the tightly contested vote, while the financial fallout of the coronavirus pandemic has pushed up the debt-to-GDP ratio past 70% and prompted the International Monetary Fund to flag the danger of debt distress.


The West African nation, a major producer of gold, oil and cocoa, has suffered its first economic contraction in almost four decades as a result of the pandemic and the lockdown it caused.


But investor confidence has been buoyed by hopes that post-election Ghana will resume the path of economic reforms, gain fresh IMF support and not follow Zambia into default.


Warmer sentiment towards global emerging markets in general after recent vaccine developments have also lifted sentiment.


Ghana’s bonds were the third best performing in emerging markets last week, returning 2.5%, according to EPFR and Citi, extending a recovery from March following the chaos wrought by the pandemic.


Franklin Templeton, BlackRock and Aberdeen Standard Investments raised Ghana exposure in their emerging market bond funds in recent months, holdings data shows.


“We feel the political risk premium and, to some degree, associated policy uncertainty embedded in current credit spreads overstate the risks to Ghana’s ability and willingness to service its debt,” said Yvette Babb, emerging markets debt portfolio manager at William Blair, which is overweight Ghana in its hard currency emerging market debt fund.


BRIGHTER OUTLOOK


Ghana’s finance ministry in October revised higher its 2020 growth forecast to 1.9% and for 2021 to 5.9%, while trimming its 2021 fiscal deficit estimate to 8.3%.


“The fiscal situation is indeed fragile with the deficit reaching 15% of GDP this year, but once the election is out of the way we think they can embark on a fiscal consolidation path,” said Rodica Glavan, senior portfolio manager at Insight Investment.


Along with many other investors, Glavan expects President Nana Akufo-Addo and his New Patriotic Party (NPP) to win another four-year term.


There has been little talk of fiscal consolidation on the election campaign trail.


The NPP has pledged a new airport in the central region and a rental support scheme, while the main opposition National Democratic Congress (NDC) promises more infrastructure investment and free laptops for university students.


“The manifestos of the two parties are based on spending promises but are small on funding plans or proposals,” said Leslie Dwight Mensah, economist at the Institute for Fiscal Studies in Ghana.


The impact of the pandemic has strained the government’s fiscal position, with 50% of revenues used to service debt, said Ankit Khandelwal, director, Africa coverage at MUFG EMEA.


“There is a need to fiscally adjust back to the 5% deficit in the fiscal rule, a key target in the next few years to reduce significant gross funding needs, interest rates, costs and stabilise debt ratios,” said Christian Libralato, portfolio manager at BlueBay Asset Management.


A credible fiscal policy would also allow Ghana access to debt capital markets again in 2021, said Libralato, adding that a funded IMF programme would boost confidence in debt sustainability.


Ghana received $1 billion in emergency IMF funding earlier this year.


“Ghana followed a clear path of reforms, thus placing themselves on a stronger footing to deal with the COVID-19 onslaught, in spite of substantial challenges,” said Simon Quijano-Evans, chief economist of Gemcorp Capital.

COMMENTS

RECENT WITH THUMBS$type=blogging$m=0$cate=0$sn=0$rm=0$c=4$va=0

Local News Entertainment Celebrities music Politics Ghana Africa Entertainment News World-Entertainment Ghana music news Videos Election 2020 NPP Crime Musicians Presidential Latest News In Ghana Africa News NDC Volta Region Breaking News Sports Education Breaking Africa Finance Ewe Ghana Relationship General News featured news EweGhana Parliamentary GH MUSIC Video Breaking World-Sports Latest music Music Video Business Nigerian Music World News Health Nigeria Sports News History www.EweGhana.Net 18+ Slay Queen Results Trending Government World-Politics Ladies Dancehall World-Business Police Advert Shatta Wale Music and Video EweGhana.Net Football Ashanti Region Covid19 Foreign News Culture School Biography Events Church Accident Religious Rock Venus Press Release News In French lifestyle Gospel Music International Awards Election Shows Food Sarkodie Stonebwoy Technology showbizz Social Kwabena Yeboah Soccer Akufo Addo Artiste Profile Accra Coronavirus Fashion NPP NEWS Animals Games Porn mixtape #Fixthecountry Music Lyrics Sex Media Artists Profile Kenya Nigeria Videos Science Bible Birthday Security Showbiz Job Life Others Performing Video Tourism Bloggers Market Pastor Akuapem Poloo Artist DJs Mixtape FM Program Germany Interview Multimedia Photos Corona Virus Dj china ghana Gosple India Jamaica MP Actress Ashanti Beauty Talk Coronavirus News Khemikhals Speak Your Mind Movement Tema Togo Uganda Court Curvy FM Stations Festivals Fucking Gun Instrumentals Italian Music Mali Marriage Radio Station Program Advice Blakabill Event Haircut Hairstyle Inspiring Our Culture Journalism Life Inspiration Medikal Philohope South Africa Tv3 Actor Arsenal Burkina Faso Cameroon Central Africa Chad Dance Video Date Rush Death Destie HIPLIFE Jobs Malaria Minister Of Health Nana Agradaa Princess Of Principle Reggae Republic Of The Congo Sierra Leone Tanzania Trending News USA West Africa World-Music Adult Banks Benin Edem Environment France Hair Growth Hip hop Instrumental Mozambique Russia Senegal Thac Nation Trees Tunisia Weapon Afia Odo Athletes Australia British China Christians Culture Festivals Egypt GHANA NEWS HEADLINES Galamsey Gold Gold Cassy Reigns Hair Style IGP Leaks Manchester United Money National Other Parties Rhino Robbers Sierra Leone Music Social news South Sudan Tokyo Upcoming Vaccine World Health Organization kuami Eugene Afri America Anoda Level Articles Bono Region Comedy Crises D Black Digital Marketing Ethiopia Film Ghana Music Lyrics Gyakie Hotel Light It Up Records Morocco Mr. Loyalty Peeshaar Dhiss Pregnancy President Joe Biden Sakabo Show Strongman Technician Tribes Water Yaa Pono fire outbreaks opinion AFRICA NEWS HEADLINES AirtelTtigo Ama Nova Army Art Barcelona Belgium Benin Music Berlin Bet Big Boiz Burna Boy COVID-19 Cowbell Cup Davido Destiny Etiko Dubai ECOWAS Eastern Region Ebola Efia Odo Efya El Kassy Electoral Commission Europa League Europe Faction Designs Finland Fraud French German Shepherd Gospel Grammy Award Guchi Hospital Hygiene Iran Jaman Kwabena Japan Jennifer Joe Main Johannesburg John Dumelo Kasapa Kasoa Kennedy Agyapong Kidi King Godzy Kofi Kinaata Kumasi Kumawood Kwaw Kese Ladis Lawyer Ntim Liberia Lyrics Video Malawi Mavado Maxbriyann Miami Michelle Obama Model Motivation Motorbikes Motorway MzVee NASA Nanky Nigeria Nig Nollywood Official Olympic Pakistan Paralympian Plants Port Poverty Prosecutor Queen Of Africa Ras Rex Omar Richest Rwanda Secu Shugatiti Somalia Suez Canal Sunyani Sweden Taiwan Tamale Teni Thailand The Trigger Vibes Tokyo Olympic Games Train Tubrizzy Turkey UK UN United States Vacc Vybz Kartel WHO Youth Zambia Zimbabwe beaches Adzake Akrobeto Akwaboah Album Amerado Anthony B Ay Poyoo Banger Alert Bella Jemima Bisa Kdei Body Builders Boxer Brazil Bus Cannot Lose Carboni Central Region Divorce Dj Profile Doctor Drip Yesu EP Eastern Region Ebony Efua Kueen Enam – Talk To Your Boyfriend (Feat Sister Deborah X T’neeya) England Eno Be Muf Fameye Fancy Gadam Fava Gee Gallaxy Hajia Bintu Ike Millions Italy Jamz Album Jokes Kahpun Kanye West Kelvynboy Ken Rhapz King Godzy Gh King Promise Kitchen Kofi mole Kwame Yogot Kwesi Arthur Larruso Legon Libyan Living Dove Chapel Love Massage Mharidiva Northern Region Okyeame Kwame Old News Pappy Kojo Penis Ph Media Africa Portugal Prison Products Prostitute Rape Ras Kuuku Rastafarian Reggie Rockstone Rema Rent Romania Samini Selena Gomez Selina Boateng Shoprite Singapore Sista Afia Sister Derby Snakes Stonedeegh Sudan Table Tennis Tattoo ThanksGiving Tommy Lee Spartan Tony West Top 50 Best Indian Film Actresses VehementlyBwoy Wizkid Yvonne Nelson ent l officials series
Name

#Fixthecountry,17,18+,68,Accident,33,Accra,20,Actor,6,Actress,9,Adult,5,Advert,52,Advice,7,Adzake,1,Afia Odo,4,Afri,3,Africa,556,Africa News,196,AFRICA NEWS HEADLINES,2,AirtelTtigo,2,Akrobeto,1,Akuapem Poloo,11,Akufo Addo,21,Akwaboah,1,Album,1,Ama Nova,2,Amerado,1,America,3,Animals,18,Anoda Level,3,Anthony B,1,Army,2,Arsenal,6,Art,2,Articles,3,Artist,11,Artiste Profile,21,Artists Profile,15,Ashanti,9,Ashanti Region,40,Athletes,4,Australia,4,Awards,27,Ay Poyoo,1,Banger Alert,1,Banks,5,Barcelona,2,beaches,2,Beauty Talk,9,Belgium,2,Bella Jemima,1,Benin,5,Benin Music,2,Berlin,2,Bet,2,Bible,14,Big Boiz,2,Biography,35,Birthday,14,Bisa Kdei,1,Blakabill,7,Bloggers,12,Body Builders,1,Bono Region,3,Boxer,1,Brazil,1,Breaking,102,Breaking Africa,127,Breaking News,161,British,4,Burkina Faso,6,Burna Boy,2,Bus,1,Business,87,Cameroon,6,Cannot Lose,1,Carboni,1,Celebrities,914,Central Africa,6,Central Region,1,Chad,6,China,4,Christians,4,Church,34,Comedy,3,Corona Virus,10,Coronavirus,20,Coronavirus News,9,Court,8,COVID-19,2,Covid19,39,Cowbell,2,Crime,241,Crises,3,Culture,38,Culture Festivals,4,Cup,2,Curvy,8,D Black,3,Dance Video,6,Dancehall,54,Date Rush,6,Davido,2,Death,6,Destie,6,Destiny Etiko,2,Digital Marketing,3,Divorce,1,Dj china ghana,10,Dj Profile,1,DJs Mixtape,11,Doctor,1,Drip Yesu,1,Dubai,2,Eastern Region,1,Eastern Region,2,Ebola,2,Ebony,1,ECOWAS,2,Edem,5,Education,136,Efia Odo,2,Efua Kueen,1,Efya,2,Egypt,4,El Kassy,2,Election,27,Election 2020,270,Electoral Commission,2,Enam – Talk To Your Boyfriend (Feat Sister Deborah X T’neeya),1,England,1,Eno Be Muf,1,ent,1,Entertainment,1091,Entertainment News,534,Environment,5,EP,1,Ethiopia,3,Europa League,2,Europe,2,Event,7,Events,35,Ewe Ghana,121,EweGhana,109,EweGhana.Net,46,Faction Designs,2,Fameye,1,Fancy Gadam,1,Fashion,19,Fava Gee,1,featured news,116,Festivals,8,Film,3,Finance,122,Finland,2,fire outbreaks,3,FM Program,11,FM Stations,8,Food,25,Football,46,Foreign News,39,France,5,Fraud,2,French,2,Fucking,8,Galamsey,4,Gallaxy,1,Games,18,General News,118,German Shepherd,2,Germany,11,GH MUSIC,107,Ghana,618,Ghana music,433,Ghana Music Lyrics,3,GHANA NEWS HEADLINES,4,Gold,4,Gold Cassy Reigns,4,Gospel,2,Gospel Music,30,Gosple,10,Government,57,Grammy Award,2,Guchi,2,Gun,8,Gyakie,3,Hair Growth,5,Hair Style,4,Haircut,7,Hairstyle,7,Hajia Bintu,1,Health,77,Hip hop,5,HIPLIFE,6,History,70,Hospital,2,Hotel,3,Hygiene,2,IGP,4,Ike Millions,1,India,10,Inspiring Our Culture,7,Instrumental,5,Instrumentals,8,International,29,Interview,11,Iran,2,Italian Music,8,Italy,1,Jamaica,10,Jaman Kwabena,2,Jamz Album,1,Japan,2,Jennifer,2,Job,13,Jobs,6,Joe Main,2,Johannesburg,2,John Dumelo,2,Jokes,1,Journalism,7,Kahpun,1,Kanye West,1,Kasapa,2,Kasoa,2,Kelvynboy,1,Ken Rhapz,1,Kennedy Agyapong,2,Kenya,15,Khemikhals,9,Kidi,2,King Godzy,2,King Godzy Gh,1,King Promise,1,Kitchen,1,Kofi Kinaata,2,Kofi mole,1,kuami Eugene,4,Kumasi,2,Kumawood,2,Kwabena Yeboah,23,Kwame Yogot,1,Kwaw Kese,2,Kwesi Arthur,1,l,1,Ladies,55,Ladis,2,Larruso,1,Latest music,88,Latest News In Ghana,202,Lawyer Ntim,2,Leaks,4,Legon,1,Liberia,2,Libyan,1,Life,13,Life Inspiration,7,lifestyle,31,Light It Up Records,3,Living Dove Chapel,1,Local News,1308,Love,1,Lyrics Video,2,Malaria,6,Malawi,2,Mali,8,Manchester United,4,Market,12,Marriage,8,Massage,1,Mavado,2,Maxbriyann,2,Media,16,Medikal,7,Mharidiva,1,Miami,2,Michelle Obama,2,Minister Of Health,6,mixtape,18,Model,2,Money,4,Morocco,3,Motivation,2,Motorbikes,2,Motorway,2,Mozambique,5,MP,10,Mr. Loyalty,3,Multimedia,11,music,908,Music and Video,47,Music Lyrics,17,Music Video,88,Musicians,221,MzVee,2,Nana Agradaa,6,Nanky,2,NASA,2,National,4,NDC,170,news,424,News In French,31,Nigeria,76,Nigeria Nig,2,Nigeria Videos,15,Nigerian Music,83,Nollywood,2,Northern Region,1,NPP,258,NPP NEWS,19,Official,2,officials,1,Okyeame Kwame,1,Old News,1,Olympic,2,opinion,3,Other Parties,4,Others,13,Pakistan,2,Pappy Kojo,1,Paralympian,2,Parliamentary,108,Pastor,12,Peeshaar Dhiss,3,Penis,1,Performing Video,13,Ph Media Africa,1,Philohope,7,Photos,11,Plants,2,Police,53,Politics,747,Porn,18,Port,2,Portugal,1,Poverty,2,Pregnancy,3,President Joe Biden,3,Presidential,219,Press Release,32,Princess Of Principle,6,Prison,1,Products,1,Prosecutor,2,Prostitute,1,Queen Of Africa,2,Radio Station Program,8,Rape,1,Ras,2,Ras Kuuku,1,Rastafarian,1,Reggae,6,Reggie Rockstone,1,Relationship,121,Religious,33,Rema,1,Rent,1,Republic Of The Congo,6,Results,62,Rex Omar,2,Rhino,4,Richest,2,Robbers,4,Rock Venus,33,Romania,1,Russia,5,Rwanda,2,Sakabo,3,Samini,1,Sarkodie,25,School,38,Science,15,Secu,2,Security,14,Selena Gomez,1,Selina Boateng,1,Senegal,5,series,1,Sex,17,Shatta Wale,49,Shoprite,1,Show,3,Showbiz,14,showbizz,25,Shows,26,Shugatiti,2,Sierra Leone,6,Sierra Leone Music,4,Singapore,1,Sista Afia,1,Sister Derby,1,Slay Queen,64,Snakes,1,Soccer,23,Social,24,Social news,4,Somalia,2,South Africa,7,South Sudan,4,Speak Your Mind Movement,9,Sports,146,Sports News,71,Stonebwoy,25,Stonedeegh,1,Strongman,3,Sudan,1,Suez Canal,2,Sunyani,2,Sweden,2,Table Tennis,1,Taiwan,2,Tamale,2,Tanzania,6,Tattoo,1,Technician,3,Technology,25,Tema,9,Teni,2,Thac Nation,5,Thailand,2,ThanksGiving,1,The Trigger Vibes,2,Togo,9,Tokyo,4,Tokyo Olympic Games,2,Tommy Lee Spartan,1,Tony West,1,Top 50 Best Indian Film Actresses,1,Tourism,13,Train,2,Trees,5,Trending,61,Trending News,6,Tribes,3,Tubrizzy,2,Tunisia,5,Turkey,2,Tv3,7,Uganda,9,UK,2,UN,2,United States,2,Upcoming,4,USA,6,Vacc,2,Vaccine,4,VehementlyBwoy,1,Video,105,Videos,380,Volta Region,169,Vybz Kartel,2,Water,3,Weapon,5,West Africa,6,WHO,2,Wizkid,1,World Health Organization,4,World News,79,World-Business,54,World-Entertainment,486,World-Music,6,World-Politics,57,World-Sports,98,www.EweGhana.Net,70,Yaa Pono,3,Youth,2,Yvonne Nelson,1,Zambia,2,Zimbabwe,2,
ltr
item
EweGhana.Net Inspiring Our Culture: Ghana regains lustre for investors ahead of Dec. 7 election despite debt woes
Ghana regains lustre for investors ahead of Dec. 7 election despite debt woes
Ghana holds presidential and parliamentary elections on December 7 amid concerns over its rising debt pile, but that has not stopped some investors.
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9H087erTUehCZAhSQTBDR3g0rHX5Oq9F3NsLp6bJbygJQwuYCQYiPqfgc5XB8ekF7UsNd_Qs_x2sX4Q7J0dBWMnGgYOYCx_HrF0Svhq9Do3wUVKHnjIxp8Mq9auBkz_yhdkP79OaaUvU/s16000/70728292.jpg
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9H087erTUehCZAhSQTBDR3g0rHX5Oq9F3NsLp6bJbygJQwuYCQYiPqfgc5XB8ekF7UsNd_Qs_x2sX4Q7J0dBWMnGgYOYCx_HrF0Svhq9Do3wUVKHnjIxp8Mq9auBkz_yhdkP79OaaUvU/s72-c/70728292.jpg
EweGhana.Net Inspiring Our Culture
https://www.eweghana.net/2020/12/ghana-regains-lustre-for-investors.html
https://www.eweghana.net/
https://www.eweghana.net/
https://www.eweghana.net/2020/12/ghana-regains-lustre-for-investors.html
true
3390848294410594855
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content