Government begins roadshow to consolidate investor confidence in economy
Government has started engaging investors outside the country to try and address any concerns they have with the Ghanaian economy.
The engagement with these investors which has been described as a non-deal road show, begun in London on Tuesday, and will take the team to Boston, New York and other states in the USA.
JOYBUSINESS understands the engagement was influenced by request from some institutional investors who buy bonds issued by government.
This is because they want to use the meeting to know the current economic management team for Ghana, understand reasons behind some programs and policies outlined in the 2017 budget.
It will also offer them an opportunity to have some one-on-one engagement with team members, especially the new Finance Minister of Ghana Ken Ofori- Atta, Central Bank Governor, Dr. Ernest Addison.
Sources say the engagement could help trigger more investments into the economy at a lower interest rate if these investors are convinced by the team after the engagement.
Persons close to this non-deal road show have denied embarking on this exercise just because government wants to issue a Eurobond.
However, sources say depending on how the engagement goes it could influence government’s decision to turn to the international capital market in the future to possibly issue a Eurobond at a cheaper rate to finance expensive Eurobonds. This is similar to the one which was issued recently at around at a little over 10.75 percent.
If this administration, for instance, goes ahead to issue a Eurobond later this year, that will be its first. In 2007, the then, New Patriotic Party (NPP) administration, issued the country’s first Eurobond to raise some $750 million.
Finance Minister Ken Ofori Atta, Central Bank Governor Dr. Addison, and other government officials embarking on this engagement with these investors who normally purchase bonds issued by government will be joined by the Vice President Dr. Mahamadu Bawumia who will join them on Tuesday.
Analysts say the engagement with these investors has become critical looking at the fact the most cedi and dollar bonds issued by government are taken up by these institutional investors outside the country.
Others also cite the recent reaction by these foreign investors to news about some $7 billion expenditure that was not reported as reasons why such engagements are critical.
The previous administration had always used the approach of issuing a Eurobond after a non-deal road show.