Investors have described Ghana’s economy as the one to watch in Africa during 2020. The economy seems to have taken a turn for the better after a discouraging 2019.
Everything changed in 2020 as the Ghanaian cedi is now regarded as the best performing currency in the world.
According to a report from Bloomberg, investors are currently in a rush to buy into the nation’s $3 billion Eurobond issue and foreigners are gaining interest in its local currency debt.
Reports say investors who expressed fears about election-related spending are now praising the government’s fiscal prudence and financial reforms.
This was reflected in the sale of the Eurobond two weeks ago when orders were placed for almost five times the original amount.
This led to a fall in the yield well below the initial price target and with the first local-currency bond sale of the year in January foreign investors bought more than 80% of the 1.4 billion cedis ($258.3 million) of securities, compared with average holdings of 37% over the past two years.
This positive outlook has been credited to reforms started by Ghana three years ago.