After a delayed start, and in volatile conditions for emerging market sovereigns, Ghana successfully issued the longest ever sub-Saharan African bond, and the first to be guaranteed by the International Development Association (IDA). In an inversion of the normal routine, the Ghanaian government is borrowing abroad because it is easier than borrowing at home.
Having been one of Africa's most successful economies, Ghana recently had to call on the aid of the International Monetary Fund (IMF), with whom it agreed a three-year $918m extended credit facility earlier in 2015 to support its economic reforms. Its fiscal position had been deteriorating rapidly, with falling revenues and government overspending, notably on public sector wages. The budget deficit has been accompanied by a current account deficit, compounded by a weakening currency and, since Ghana is an oil exporter, falling oil prices. While growth has halved since 2012, inflation has doubled, to nearly 18%, and matters are made worse by an ongoing energy crisis.
