Top Ghana Fund Sees Yields Headed for 2-Year Low After Election

ACCRA (Capital Markets in Africa) – Ghana’s uncontested presidential vote will probably help spur the yield on its dollar debt to the lowest level since 2014, according to the nation’s biggest private fund manager.

“Given the decisiveness of the numbers and how widely apart they are, it just shows investors that there’s no need to continue to price in any risk of a potential dispute,” said Courage Kingsley Martey at Accra-based Databank Group Ltd, the sole economist to accurately predict the central bank’s first rate cut since 2011 last month. He sees the yield on the nation’s 2023 debt falling to 8 percent by June, the lowest level since November 2014.

Ghana’s bonds have rallied for three-straight days after Akufo-Addo’s New Patriotic Party won the Dec. 7 vote, with the yield declining to 8.9 percent as of 12:14 p.m. in Accra. President John Mahama conceded victory two days later, with the winner predicted to continue an International Monetary Fund economic program.