The World Bank has cautioned the Government of Ghana against making an early return to the international Eurobond market, warning that such a move could undermine the country’s fragile economic recovery and damage its credibility with investors.
In its latest assessment of Ghana’s post-crisis economic outlook, the Bank urged authorities to focus on deep structural reforms rather than rushing to borrow again.
“The most positive immediate action the government can take would be to refrain from precipitously re-accessing the Eurobond market,” the report stated.
The Bank stressed that regaining access to international capital markets should not be viewed as a sign of restored credibility, but as a chance to demonstrate lasting reform commitments.
Reforms Over Borrowing
The World Bank called on the government to use the current crisis as a “turning point” to implement long-delayed reforms, particularly in the energy and cocoa sectors, which it described as critical tests of policy resolve.
It highlighted the urgent need for vigorous domestic revenue mobilisation to generate sustained primary fiscal surpluses and reduce the country’s reliance on expensive external borrowing.
Signalling a Break from the Past
“There is an urgent need to signal a clear break from the past and a commitment to change,” the report emphasised. “Staying the course is vital for establishing credibility, reducing country risk and borrowing costs, improving investor sentiment, and supporting a sustained growth recovery and long-lasting job creation.”
The warning comes as Ghana continues to recover from a severe debt and currency crisis, which forced the government to suspend Eurobond repayments in 2022 and seek a $3 billion International Monetary Fund (IMF) bailout.
While the successful restructuring of both domestic and external debts has improved investor confidence, the World Bank insists that any premature attempt to issue new bonds could reverse hard-won gains and delay the country’s path to long-term debt sustainability.
