ECG Posts Record GH¢1.74bn Revenue as World Bank Warns Ghana Against Eurobond Return

Ghana's economic landscape presents a complex picture this week, featuring record-breaking utility performance alongside concerning debt market developments and crucial international warnings. These contrasting signals highlight both the progress and persistent challenges in the nation's economic recovery journey.

ECG Announces Record-Breaking GH¢1.74 Billion Monthly Revenue

The Electricity Company of Ghana (ECG) has achieved a historic milestone, reporting a record-breaking monthly revenue of GH¢1.74 billion for July 2025, the highest monthly collection in the company's history.

Julius Kpekpena, Acting Managing Director of ECG, announced this achievement during a meeting with Parliament's Energy Committee, stating, "It's a record and we want to celebrate that." The remarkable performance demonstrates significant improvement in revenue collection efficiency amid ongoing challenges in the energy sector.

Beyond the financial milestone, ECG is focusing on enhancing customer experience through internal process improvements. The company is working to reduce delays and frustrations faced by customers applying for power connections or meters. Kpekpena acknowledged that "we have some issues in some of the districts and regions" but emphasized that "we are working to resolve those" and making progress in streamlining operations.

Treasury Bills Auction Undersubscribed as Government Misses Target by GH¢2.11 Billion

Ghana's domestic debt market faced significant headwinds last week as the Treasury bills auction was undersubscribed by 37.5%, with the government accepting only GH¢3.46 billion against a target of GH¢5.58 billion.

The breakdown shows:

• 91-day bill: GH¢2.65 billion accepted of GH¢2.66 billion tendered

• 182-day bill: GH¢695 million accepted of GH¢705 million submitted

• 364-day bill: GH¢116 million accepted of GH¢119 million tendered

Analysts attributed the weak demand to:

• Tight liquidity among commercial banks following BoG's open market operations that absorbed nearly GH¢19 billion

• Persistently low appetite for Treasury bills among investors

• Yield pressures pushing rates slightly higher across the curve

The shortfall resulted in modest yield increases:

• 91-day bill: Rose 5 basis points to 10.50%

• 182-day bill: Increased 3 basis points to 12.39%

• 364-day bill: Edged up 1 basis point to 12.89%

Looking ahead, the government aims to raise GH¢3.71 billion in this week's auction amid challenging market conditions.

World Bank Issues Strong Warning Against Early Eurobond Market Return

The World Bank has delivered a stern warning to the Ghanaian government against making an early return to the Eurobond market, cautioning that such a move could "undermine the country's credibility and derail efforts to restore long-term economic stability."

In its latest assessment of Ghana's post-crisis recovery, the international institution emphasized that "the most positive immediate action the government can take would be to refrain from precipitously re-accessing the Eurobond market." The report stressed that the ability to borrow internationally should not be mistaken for credibility but rather seen as an opportunity to demonstrate lasting reform commitments.

The World Bank urged authorities to:

• Implement long-delayed structural reforms in energy and cocoa sectors

• Prioritize vigorous domestic revenue mobilization

• Generate sufficient primary fiscal surpluses

• Use the crisis as a turning point for fundamental changes

The institution emphasized that "staying the course is vital for establishing credibility and substantially reducing country risk and borrowing costs," which would ultimately support "sustained growth recovery and long-lasting job creation."

Investor's Insight – Ghana Stock Exchange: EGH Leads Gainers with 17.65% Surge

The Ghana Stock Exchange showed strong momentum with EGH leading the gainers with an impressive 17.65% increase. Other notable performers included CAL (+10.53%), FML (+10.21%), and MTNGH (+6.36%), while GGBL declined by 9.59%. This mixed but generally positive performance reflects selective investor confidence in specific sectors despite broader economic challenges.

Cediboard reveal the delicate balancing act facing Ghana's economic managers. ECG's record revenue performance demonstrates tangible progress in addressing longstanding challenges in the energy sector, potentially reducing the fiscal burden of energy sector subsidies.

However, the Treasury bills undersubscription signals ongoing challenges in domestic debt management, while the World Bank's warning highlights the international community's cautious stance on Ghana's recovery trajectory. The contrasting messages underscore the complexity of navigating short-term financial needs against long-term stability objectives.

For investors, the stock market's selective gains suggest opportunities remain in well-performing companies, particularly those demonstrating operational improvements like ECG. However, the debt market challenges and international cautions indicate that macroeconomic risks persist, requiring careful assessment of investment decisions.

The coming months will be crucial in demonstrating whether Ghana can maintain its reform momentum while avoiding the pitfalls of premature return to international debt markets, as cautioned by the World Bank.

Stay tuned to the Cedi Board® for real-time updates on Ghana's financial pulse. From prices and policy to investment tips that help you make sense of the numbers.