Ghana’s dollar-denominated bonds delivered 8.7% in total returns this month, outperforming the average return of 0.4% for emerging markets.
The West Afrocan country which defaulted defaulted on its debt and sought IMF help in 2022 has been recording climbing gold exports, trade surpluses, and slowing inflation, which have aided its currency and bonds to recover, accoding to a Bloomberg report.
President John Mahama, who won elections at the end of last year, has cut government spending in a bid to curb fiscal deficits and rein in inflation which slowed to 21.2% in April from a peak of 54% in December 2022 .
“Simply put, Ghana is back,” said Kato Mukuru, head of research and CEO of Emerging and Frontier Capital. “Trends have remained positive, and this must have supported the rally in the bonds.”