Ghana targets GH¢2.3bn in T-bills auction

Ghana has set a target of 2.3 billion cedis for the treasury bills auction this week, as the country continues to navigate its fiscal challenges. The nation has also extended the deadline for the $809.9 million denominated bonds to August 18th, reflecting the ongoing efforts to manage its debt and stabilize its economy. Rhode Luemba, Head of Flow Sales, Global Markets at Standard Bank Group, provided insights into the developments in the Ghanaian economy in a recent interview with CNBC Africa. The mid-year budget review served as a critical point of assessment for the government, offering a glimpse into the fiscal and macroeconomic landscape. Luemba highlighted the importance of aligning the fiscal policy with IMF-supported programs to achieve macroeconomic stability and debt sustainability. He emphasized the necessity of fiscal consolidation to drive long-term economic growth and create job opportunities, signaling a positive outlook for Ghana's economic transformation. The restructuring of sovereign debt instruments, particularly denominated bonds, has been a focal point for Ghana. The government's initiatives aim to rebuild trust and credibility in the country's debt, with a clear focus on sustainability and investor confidence. The extension of the deadline for bond participation reflects a strategic move to accommodate investors and strengthen the country's debt management framework. While challenges persist, including the need for extensions and potential haircuts, Ghana is making strides towards a stable economic trajectory. The path to debt sustainability requires discipline and commitment, with a timeline set for 2028 to return to a sustainable course. The presence of the IMF and strategic restructuring efforts are expected to bolster Ghana's economic resilience and attract foreign investment. Looking beyond Ghana, the spotlight shifts to Nigeria, where recent developments have lifted the outlook on the country's debt rating. S&P's affirmation of Nigeria's credit rating and the upgrade to a stable outlook signal positive momentum for the economy. Investors eyeing Nigerian debt instruments are presented with a more favorable landscape, characterized by stability and confidence. The affirmation by credit rating agencies underscores Nigeria's progress and sets the stage for increased investor interest. With elections behind and a stable outlook ahead, Nigeria's economic prospects are gaining traction in the global market. The positive sentiment from international agencies bodes well for Nigeria's economic resurgence and positions the country favorably for investment opportunities. As Ghana and Nigeria navigate their respective economic landscapes, the focus remains on implementing sound fiscal policies, fostering investor trust, and driving sustainable growth for the benefit of their citizens and global stakeholders.