Ghana is emerging as a top performer among developing economies, recording the highest returns on dollar-denominated bonds this month. Investor sentiment has surged, signaling renewed confidence in the country's economic trajectory under President John Dramani Mahama.

As reported by Bloomberg, Ghana’s dollar bonds have delivered an impressive 8.7% return in May, significantly outperforming the 0.4% average across emerging markets.

This marks a strong comeback for the West African nation, which defaulted on its external debt in 2022 and subsequently sought financial assistance from the International Monetary Fund (IMF).

The resurgence is being driven by robust export growth—particularly in gold and cocoa—alongside a series of disciplined fiscal reforms rolled out by the Mahama administration.

“Simply put, Ghana is back,” said Kato Mukuru, Head of Research and CEO of Emerging and Frontier Capital, in comments to Bloomberg. “Trends have remained positive and this must have supported the rally in the bonds.”

According to the report, the Ghanaian economy is benefiting from a combination of rising gold exports, consistent trade surpluses, and a sharp slowdown in inflation.

These developments have contributed to a more stable Ghanaian cedi and improved investor sentiment in the country’s sovereign debt.

Inflation, which had soared to 54% in December 2022, has now dropped to 21.2% as of April 2025, based on figures from the Ghana Statistical Service. This decline follows government efforts to cut public spending and restore macroeconomic stability.

Since returning to office following the December 2024 elections, President Mahama has implemented a series of austerity measures aimed at reducing fiscal deficits and restoring investor trust.

His administration’s emphasis on economic discipline is beginning to pay off, positioning Ghana as a standout performer in global emerging markets.