Discussing the emergence of Ghana’s commercial paper market with CNBC Africa, Oforiwaa Attipoe, the Global Market Sales Representative for Ghana at Standard Bank, emphasized the role of commercial papers in diversifying investment opportunities amid ongoing economic restructuring efforts. She mentioned that “Ghana’s capital market, previously characterized by low liquidity and minimal regulation, now offers corporates a platform to access short-term financing at relatively lower rates compared to traditional bank loans. Moving forward, the performance of Ghana's Debt Capital Markets in the second quarter will hinge on various factors, including the success of the commercial paper market, currency stability, and inflation trends.”

In recent market activities, the oversubscription of treasury bills remains a notable trend, indicating investor confidence in the government’s financial instruments. Mrs. Attipoe highlighted the Government of Ghana’s reliance on treasury bills to raise funds, particularly to address budget deficits and service existing debt obligations.

Relative to inflation, the latest data on inflation from Ghana highlights a notable downward trend, providing a backdrop for the country’s economic trajectory in the coming months. Mrs. Attipoe explained that “April witnessed a drop in inflation to 25%, down from March’s 25.8%. This decline aligns with earlier predictions by economic analysts, who forecasted a gradual decrease to around 15-16% by year-end. Factors contributing to this trend include favorable base effects from the previous year and a continuous downtrend in food prices. Data released by the Ghana Statistical Services revealed a significant decrease in food basket inflation, attributing it to a 2.1% drop, indicating a positive year-on-year movement.”

However, other metrics within the inflation basket, such as housing and utilities, ex-pump petroleum prices, experienced an upward trajectory. Mrs. Attipoe noted that currency pressures contributed to these increases but emphasized that food prices remained a crucial driver, comprising approximately 45% of the overall inflation figure.

Overall, the unfolding financial landscape in Ghana reflects a concerted effort to stimulate economic growth and foster investor confidence amidst prevailing challenges. With strategic initiatives like the expansion of commercial paper markets and prudent fiscal policies, the country aims to chart a path towards economic recovery and sustainable economic development.