Baffour Agyarko Kwakye, Vice President of Debt Capital Markets & Distribution at Stanbic Bank Ghana, has underscored the critical role of a stable macroeconomic environment in sustaining the country’s capital markets.
Speaking at the West Africa Bond Market Conference in Accra, Kwakye emphasized that restoring investor confidence and fostering regulatory collaboration are essential to revitalizing Ghana’s bond market following recent economic challenges.
During a panel discussion titled “The Opportunities and Challenges of Developing Africa’s Bond Market: Demand, Supply, and Liquidity,” Kwakye pointed to the lingering effects of Ghana’s 2022 Domestic Debt Exchange Programme as a pivotal moment for market trust. “Macroeconomic stability is non-negotiable for the recovery and sustained development of our capital markets,” he stated. “Investor confidence remains the lifeblood of any successful bond market, and without stability, attracting long-term investment becomes an uphill battle.”
Ghana’s capital market has faced significant strain in recent years, particularly during the domestic debt restructuring process, which reshaped the financial landscape. Despite these pressures, Kwakye acknowledged the market’s enduring importance as a source of long-term financing for both public and private sectors. He praised the Ghana Stock Exchange (GSE) for its efforts in rebuilding market confidence, calling it a cornerstone of the country’s financial ecosystem.
Kwakye also urged stronger coordination among regulators, including the GSE, Securities and Exchange Commission (SEC), and the Bank of Ghana, to address structural hurdles. “Regulatory silos can impede progress,” he noted. “Strategic collaboration would enhance liquidity and resilience, unlocking the full potential of our bond market.”
Hosted jointly by the Ghana Stock Exchange and the International Capital Market Association (ICMA), the conference brought together policymakers, regulators, financial institutions, and market experts to discuss strategies for deepening West Africa’s capital markets. The event highlighted regional aspirations to foster integrated, liquid markets capable of supporting economic growth across the subregion.
Ghana’s focus on macroeconomic recovery comes amid broader efforts to stabilize its economy after securing a $3 billion IMF bailout in 2023. The bond market’s role in financing infrastructure and corporate projects remains pivotal, particularly as the government seeks to reduce reliance on external debt. Kwakye’s remarks reflect a growing consensus among African financial leaders that harmonized policies and transparent regulatory frameworks are key to attracting both local and international investors.
As Ghana navigates post-debt restructuring challenges, the interplay between economic stability and capital market vitality will likely shape the country’s ability to leverage financial systems for sustainable development. Initiatives like the West Africa Bond Market Conference underscore the regional commitment to creating resilient markets that can withstand global economic headwinds while driving inclusive growth.
Source: News Ghana / Digpu NewsTex