The Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, on April 19, confirmed to participants at Ghana’s Diaspora Roundtable in the DMV area of the United States that the Central Bank, in collaboration with government itself, is exploring the possibility of the country issuing “Diaspora Bonds” which could attract the savings and investment of Ghanaians resident abroad.
“The Bank of Ghana is aligning its approach with international best practice” Dr Asiama affirmed, revealing that “We are exploring diaspora bonds and structured investment vehicles in collaboration with the designated MDAS, promoting foreign-currency-denominated investment products through supervised industry players, strengthening regulatory frameworks for cross border flows, and establishing more structured and continuous diaspora engagement platforms.”
To be sure, remittance inflows remain a cornerstone of Ghana’s external sector. In 2024, Ghana recorded approximately US$4.6 billion in remittances. These flows continued to rise through 2025, reaching nearly US$7.8 billion by year-end. “At roughly six per cent of GDP, remittances now exceed foreign direct investment, underscoring their systemic importance” Dr Asiama has noted.
However, a large chunk of these remittances go into consumption rather than investment into Ghana’s productive capacity. Channeling diaspora capital into production and infrastructural development has now been recognized as a challenge that must be addressed, and the straight-forward solution lies in attracting diaspora capital in the form of investment bonds.
Officials at the Bank of Ghana and the Ministry of Finance confirm that preliminary work is already underway on modalities for issuing Diaspora Bonds, aimed at converting remittance inflows into longer-term, investment-oriented capital.
The move comes against the backdrop of renewed efforts to deepen domestic capital markets and diversify funding sources following Ghana’s recent debt restructuring, while also leveraging the growing financial influence of Africans in the global diaspora.
From remittances to structured investment
At the policy level, the initiative reflects a deliberate pivot from consumption-driven remittance inflows to structured investment vehicles.
Speaking earlier this year, Bank of Ghana Governor Dr Johnson Asiama had already declared that authorities are seeking to “complement remittance inflows with structured, investment-oriented instruments,” including diaspora bonds and collective investment schemes adding that while remittances have historically supported household consumption and macroeconomic stability, “they hold even greater potential as a driver of productive investment.”
Industry analysts say this framing is critical to understanding the likely structure of any eventual issuance.
“Diaspora bonds are not just about raising money; they are about creating a credible pipeline through which diaspora savings can be channelled into specific sectors like infrastructure, housing and SMEs,” says Kojo Mensah, a capital markets analyst in Accra. “That will influence everything from tenor to pricing.”
While no official issuance size has been disclosed, market participants suggest Ghana could initially test the market with a relatively modest offering—potentially in the range of US$200 million to US$500 million—to gauge appetite.
“The experience from countries like Nigeria shows that diaspora bonds can be successful, but uptake depends heavily on trust and transparency,” says Abena Ofori, a fixed income strategist. “A pilot issuance is more realistic than a large debut.”
Globally, diaspora bonds are typically structured as medium- to long-term instruments, often ranging between five and ten years, with proceeds earmarked for identifiable development projects.
Officials familiar with the discussions say Ghana is likely to adopt a similar structure, potentially offering both foreign currency-denominated and cedi-linked instruments to cater to different investor preferences.
“There is ongoing work on structuring options, including whether to issue in dollars, pounds or euros, or to provide cedi exposure with currency protection features,” a senior Finance Ministry official has claimed on condition of anonymity.
Pricing, timing and market conditions
A central issue under consideration is pricing.
Diaspora bonds are often issued at what analysts call a “patriotic discount”—slightly below prevailing market yields—on the assumption that diaspora investors may accept lower returns in exchange for contributing to national development.
However, Ghana’s recent debt restructuring and evolving credit profile complicate that equation.
“Patriotism has limits,” warns a London-based Ghanaian fund manager. “Investors will still benchmark against yields on Eurobonds and other emerging market debt. Ghana will need to offer a competitive risk-adjusted return.”
Local fund managers argue that pricing will also depend on the perceived use of proceeds.
“If the funds are tied to visible, revenue-generating projects, investors may accept tighter spreads,” says a portfolio manager at a leading asset management firm in Accra. “Transparency will be key.”
Timing is another critical factor.
Government has already resumed activity in the domestic bond market in 2026, successfully doing a GH¢15 billion, seven year issuance at the end of March, signalling a gradual return to normal market operations.
Analysts believe a diaspora bond could follow once macroeconomic stability is more firmly entrenched.
“You want to issue when inflation is trending down, the currency is relatively stable, and confidence has been restored after the Domestic Debt Exchange Programme,” notes economist Eric Asante.
There are also indications that authorities may align the issuance with diaspora-focused events and initiatives, such as investment summits and economic diplomacy campaigns, to maximise visibility and participation. Indeed, such as opportunity is imminent with a Diaspora homecoming summit scheduled for Ghana in September this year, which will conveniently come up the month after government frees itself from the IMF’s (already loosening) shackles with regards to medium to long term public borrowing, with the Extended Credit Facility programme due to end in August.
Accessibility and distribution channels
Ensuring accessibility for diaspora investors is emerging as a central design consideration.
Unlike traditional sovereign bonds targeted at institutional investors, diaspora bonds must be structured to allow participation by retail investors across multiple jurisdictions.
“The success of the instrument will depend on how easy it is to subscribe,” said a senior official at the Securities and Exchange Commission Ghana. “Digital platforms, partnerships with international banks, and possibly fintech channels will be essential.”
The Bank of Ghana has already indicated interest in improving digital payment systems and reducing remittance costs as part of a broader strategy to enhance diaspora engagement.
Remittance products in Ghana are quite diverse and have evolved rapidly – driven through effective collaboration with banks, mobile money operators, fintech innovation, and strong diaspora inflows. These include bank-based Remittance products, Mobile Money Remittance products, Fintech / Digital Remittance Apps, Cross-Border Payment Platforms & Aggregators, Cash Pickup & Agent Network Products, etc.
Market operators say minimum investment thresholds will also be crucial.
“If you set the minimum too high, you exclude a large segment of the diaspora,” warns an investment banker. “Successful programmes elsewhere have allowed entry points as low as US$1,000 or even less.”
Currency convertibility and credit risk
Currency risk and convertibility remain among the most sensitive issues for potential investors.
“For diaspora investors earning in dollars or pounds, the ability to repatriate both principal and interest without restrictions is non-negotiable,” says a UK-based financial advisor.
Officials say Ghana is considering mechanisms to ensure full convertibility, particularly for foreign currency-denominated tranches.
Credit risk is another key concern.
Although Ghana has made progress in stabilising its fiscal position, investor confidence is still recovering following the debt restructuring exercise.
“The government will need to clearly communicate how diaspora bonds fit into its overall debt strategy,” says a credit analyst at an international ratings agency. “Investors will be looking for assurances on debt sustainability and repayment capacity.”
Recent efforts by government to meet obligations under restructured domestic debt are seen as part of a broader strategy to rebuild credibility with investors.
But perhaps even more importantly, SEC has licensed two credit ratings agencies for bond issues going forward – Nigeria’s Augusto & Co and the locally owned Beacon. Positive ratings given by these companies could generate investor confidence especially if government keeps to its promise of ring-fencing inflows and outflows of investment capital related to specific projects and programmes.
Despite the complexities, there is cautious optimism among stakeholders.
President John Mahama recently signalled that diaspora investors would “soon be able to contribute directly” to Ghana’s development through bond investments, underscoring the political backing for the initiative.
Analysts say the success of the programme will ultimately depend on execution.
“This is a promising idea, but it has to be done right,” says Mensah. “Structure, pricing, transparency and investor confidence will determine whether diaspora bonds become a meaningful funding source or just another policy concept.”
For Ghana, the stakes are high: tapping into diaspora capital could not only provide an alternative financing channel but also strengthen economic ties with Ghanaians and others of African descent, domicilled abroad—transforming remittances from a lifeline into a lever for long-term development.
By: Toma Imirhe / businesspostonline
