Ghana may face higher costs for medium- and long-term borrowing as a steepening yield curve pushes up rates beyond short-term levels.
Despite falling Treasury bill yields at the short end, longer-term rates remain elevated, increasing the cost of issuing bonds. Recent market activity suggests investors are demanding higher premiums to compensate for fiscal and macroeconomic risks.
Government bond issuances are already feeling the pressure, with recent medium-term offerings priced higher to attract investors. Corporate issuers are likely to face even steeper costs, potentially delaying planned bond sales.
Although the Bank of Ghana has signalled a more stable economic outlook, analysts warn that unless long-term yields decline, financing conditions could remain tight for both public and private sector borrowers.
The outlook now hinges on whether improving macroeconomic indicators can bring down long-term rates and ease pressure on the cost of capital.
By: Toma Imirhe / businesspostonline
