World Bank Cautions Ghana on Early Eurobond Market Return, Urges Focus on Reforms

The World Bank has strongly advised Ghana’s government against rushing back to the Eurobond market, warning that such a move could erode investor confidence and derail the country’s fragile economic recovery. The caution comes as Accra shows signs of readiness to re-enter international capital markets after restructuring its debt.

According to the Bank’s latest assessment, refraining from “precipitously re-accessing the Eurobond market” is the most positive immediate action the government can take to rebuild credibility. It stressed that regaining access to international borrowing should not be mistaken for restored investor trust but as a window to prove long-term policy discipline.

The report highlighted that Ghana’s ongoing economic challenges should be used as a turning point to implement long-delayed structural reforms, especially in critical sectors like energy and cocoa. These reforms, the World Bank noted, will be a true test of the new administration’s resolve to break from the past and establish sustainable economic foundations.

The institution also underscored the importance of robust domestic revenue mobilization to generate the primary fiscal surpluses needed to put public debt on a sustainable path. By prioritizing internal revenue generation, the government can create fiscal space for development projects without leaning heavily on costly external borrowing, reducing the country’s vulnerability to external shocks.

“There is an urgent need to signal a clear break from the past and a commitment to change,” the report stated. “Staying the course is vital for establishing credibility, lowering country risk and borrowing costs, boosting investment sentiment among both foreign and local firms, and supporting sustained growth and job creation.” The Bank’s remarks reflect growing concern among development partners that Ghana must focus on reforms to ensure a lasting recovery rather than seeking short-term relief from international debt markets.

Source: citi newsroom