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Outstanding Corporate Debt Plummets 95% by July


By Joshua Worlasi AMLANU and Ebenezer Chike Adjei NJOKU

The amount of corporate debt securities available on the Ghana Fixed Income Market (GFIM) dropped by 95% from January to July 2025 — decreasing from 919.89 million to 44.2 million — as a result of lower new issuances and the redemption of previous instruments, stated in the GSE’s July 2025 Fund Managers Report.

This equated to a figure of GH¢8.40 billion, reflecting a 14.43% decrease in July 2025 compared to GH¢9.82 billion recorded during the same time in 2024.

The decrease was mainly caused by lower remaining amounts owed by established providers on the Ghana Fixed Income Market (GFIM).

The debts of Izwe Savings and Loans Plc decreased to GH¢75 million from GH¢100 million, whereas the debt of the Ghana Cocoa Board reduced to GH¢7.33 billion from GH¢7.93 billion. ESLA Plc and Daakye Trust Plc, who previously held over GH¢1.1 billion in obligations last year, currently do not have any publicly traded shares. The departure of ESLA was preceded by a 90% repurchase of a GH¢1.04 billion bond at the end of 2024, thereby lowering its upcoming financial responsibilities.

However, some companies expanded their operations. Kasapreko Company Plc nearly doubled its total debt, reaching GH¢351.18 million compared to GH¢151.18 million previously. Meanwhile, Federated Commodities Plc made its entrance with GH¢72.55 million. Bayport Savings and Loans Plc and Letshego Ghana Plc also saw growth, with Letshego increasing to GH¢316.19 million from GH¢271.4 million.

Although there have been improvements, the market continues to be controlled by government-related tools. The total volume of fixed-income trades on the GFIM increased by 52% compared to the previous year, reaching GH¢129.66 billion from January through July 2025, with just government of Ghana bills contributing GH¢73.45 billion.

The newly launched trade notes made up 700,000 in volume during the time frame being examined.

Interest rates stay fairly elevated, with 91-day treasury notes averaging 10.94 percent, 182-day notes at 12.88 percent, and 364-day notes at 13.28 percent during July. Long-term government bonds fluctuated between 15.25 percent and 16.05 percent, posing significant challenges for companies looking for more affordable financing options.

Market players indicate that the discrepancy stems from inadequate company readiness and overlooked chances, noting that it still restricts choices available to portfolio managers.

“The present investment climate poses challenges for fund managers. We anticipated greater corporate offerings by this stage, yet numerous organizations have failed to ready their financial records ahead of time to access the market,” said Kofi Kyei Busia, Head of Pension Management at Merban Capital.

He observed that although certain activities take place in private equity and private debt, fund managers typically favor securities that have been reviewed by regulators and possess proven histories.

Nevertheless, private equity and private debt continue to serve as significant channels for directing capital towards the actual economy.

“Alternative choices might come from corporate bond offerings, but we aren’t observing them,” Mr. Busia stated.

“It’s unexpected since economic indicators are showing improvement. Interest rates are falling, inflation is moving downward, and GDP growth appears promising. Under these conditions, companies might be able to set favorable rates,” he said.

Institutional investors face mounting pressure to safeguard their assets due to restricted choices. Currently, treasury bills offer approximately 13 percent returns, whereas inflation hovers near 12 percent, resulting in a minimal actual gain.

“We require corporate bonds to spread our investments beyond government securities and bank deposits. However, suitable choices are limited, and we can’t transfer money abroad; we aim to boost the domestic economy,” said Mr. Busia.

He contended that company representatives should move swiftly to address the shortfall.

“Businesses must organize their finances, engage with professionals from the field of corporate finance, and get ready for oversight from regulators. Should they take these steps, investors are likely to react favorably,” he stated.

Mr. Busia mentioned that private equity is still a possibility, though it involves greater risk. In comparison, publicly traded corporate bonds and stocks offer more security after receiving regulatory approval from entities like the Securities and Exchange Commission (SEC).

“The private industry needs to take advantage of this opportunity. If businesses establish themselves effectively, they can secure funding, grow, and eventually support the overall economy,” he stated.

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