Engineers push for cedi bonds to fund infrastructure projects

Ghana Consulting Engineers Association is urging the government to reduce its dependence on foreign currency loans for infrastructure projects and instead raise more long-term financing through cedi-denominated bonds.

The call comes as Ghana continues efforts to balance infrastructure expansion with debt sustainability and fiscal consolidation following recent economic reforms.

According to the association, relying more on domestic capital through local currency bonds would provide a stable and predictable source of funding for infrastructure projects while reducing the country’s exposure to exchange rate risks.

Speaking at the FIDIC Africa 2026 Infrastructure Conference in Accra, President of the association, Kwabena Bempong, said Ghana’s heavy reliance on dollar-denominated borrowing continues to worsen repayment pressures whenever the cedi weakens.

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“We have often relied on dollar-denominated financing, and that comes with significant risk. Once our currency depreciates, it becomes more difficult to meet repayment obligations,” he stated.

He explained that several infrastructure projects in the past were financed through external borrowing arrangements, exposing the country to higher debt-servicing costs during periods of currency depreciation.

Bempong therefore urged the government to adopt more sustainable domestic financing options through the issuance of long-term local currency bonds dedicated to infrastructure development.

According to him, infrastructure projects require patient capital and cannot be effectively financed with short-term borrowing instruments such as treasury bills.

“We are not talking about short-term instruments like treasury bills. Infrastructure projects take a long time to execute, so what we need are long-term government bonds that can support these projects over an extended period,” he said.

He added that increasing local currency financing for infrastructure could help reduce exchange rate vulnerabilities while ensuring more reliable funding for national development projects.

The association further noted that expanding the use of cedi-denominated infrastructure bonds could deepen Ghana’s domestic capital market and create additional investment opportunities for pension funds, institutional investors, and local asset managers.

SO/MA

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