Ghana’s domestic securities market has recorded its eighth consecutive oversubscription, signaling sustained investor appetite for government securities even as Treasury bill rates continue to decline and the Ghana Stock Exchange (GSE) records strong gains.
Speaking on TV3’s Business Focus on August 17, 2026, Fellow at Africa Policy Lens and lecturer at the University of Professional Studies, Accra (UPSA), Dr Eric Boachie Yiadom, said the development reflects investors’ preference for safer assets amid Ghana’s ongoing economic recovery.
Dr Boachie Yiadom noted that Treasury bill rates have fallen significantly from about 11 percent at the beginning of the year to around 5 percent currently, yet demand for the instruments remains strong.
“The theory suggests an inverse relationship, but in practice they can all move in the same direction, depending on the state of the economy,” he said.
He explained that the strong demand for Treasury bills is occurring alongside a robust performance on the Ghana Stock Exchange, which he said is currently among the world’s top-performing markets.
According to him, the situation raises questions about how much funding is being channeled into private-sector businesses compared with short-term government investments.
Dr Boachie Yiadom said average monthly outstanding private credit and corporate loans have remained relatively stable at about GH¢120 billion to GH¢140 billion, while trading volumes in Treasury bills have recorded significant spikes, ranging from about GH¢15 billion to GH¢40 billion in some months.
He said the trend suggests that some funds that could otherwise support private businesses may instead be flowing into short-term government securities because of their relatively lower risk.
“Funds that should have gone into private businesses are now being targeted into risk-free investments,” he noted.
The economist attributed the preference partly to cautious investor behaviour as the economy recovers.
He explained that investors may still be uncertain about the durability of the economic stability and are therefore prioritising capital preservation and safety over higher-risk investments.
“If an economy is recovering, investors are looking for safety because they may not know whether the stability can last long,” he said.
Meanwhile, the Ghana Stock Exchange continues to record strong market performance, supported by increased activity and investor participation.
Dr Boachie Yiadom said the positive performance of the equities market demonstrates that investor interest is not limited to government securities, with new funds also flowing into the stock market.
The simultaneous strong demand for Treasury bills and gains on the GSE, he noted, demonstrates that different asset classes can perform strongly at the same time depending on prevailing economic conditions.
However, he cautioned that policymakers and financial-sector stakeholders must pay attention to the balance between investment in government securities and credit available to businesses.
The sustained oversubscription of government securities, alongside the strong performance of the GSE, points to growing confidence in Ghana’s financial markets, while also highlighting the need to ensure that the recovery translates into increased financing for private-sector growth.
By Coffie Mawuedem Noel
