Treasury bills overshoot, cocoa surges, and real estate returns impress
- bernard boateng
- May 27
- 4 min read
Introduction
In this week’s Cedi Board edition from Finex Skills Hub, we explore the market dynamics shaping Ghana’s economy — from commodity surges and currency stabilization to investor takeaways and policy developments. Here's what the data says and why it matters.
🔹 Cocoa’s Meteoric Rise
The price of a 64kg bag of cocoa jumped nearly 50% from ₵2,070 in April 2024 to ₵3,100, fueled by global supply constraints and Ghana’s production efforts. This surge signals a stronger inflow of foreign exchange, supporting the cedi’s stability and bolstering farmer incomes — albeit with potential inflationary consequences for cocoa-based products.
🔻 Mosquito Coil Prices Dip
Interestingly, the price of Holy Mosquito Coil (175g) dropped by 16.7%, easing costs for households. This may be attributed to improved distribution, reduced import prices, or seasonal effects as demand fluctuates post-rainy season.
💵 Cedi Stands Firm at ₵10.41/$
With the BOG interbank selling rate at ₵10.41/USD, the Cedi reflects a modest appreciation in 2025 compared to earlier rates. While not at pre-2022 levels, this stability is encouraging — supported by higher commodity inflows, prudent fiscal signals, and tightened monetary policy.
📰 In the News: Gains & Gaps
GH₵423m Treasury Bill Surplus: The government's strong auction performance boosts investor confidence and provides short-term fiscal breathing space.
Cashew Sector Struggles: Two factories facing closure point to deeper issues in agro-processing logistics and competitiveness — risking 500 jobs.
Cement Price Transparency: Enforcement lags as some cement producers miss the ex-factory price reporting deadline, highlighting weak compliance.
📈 Real Estate: A Decade of Growth
In a world where inflation eats into savings and market volatility keeps investors on edge, real estate has long stood as a pillar of wealth creation — and Ghana is no exception. If you had invested GH₵100,000 into a residential or mixed-use real estate property in 2015, there's a strong likelihood that your investment would now be worth approximately GH₵400,000 in 2025.
Let’s break down the numbers, market trends, and why real estate continues to offer some of the most consistent and inflation-beating returns in the Ghanaian economy.
📈 1. Market Growth: What’s Driving the 300% Return?
1.1 Capital Appreciation
The average price of urban residential property in areas like East Legon, Spintex, Sakumono, and Adenta has steadily grown over the last 10 years. From 2015 to 2025, land and building prices in these areas have multiplied due to:
Urban sprawl and increased demand for housing
Infrastructure development (e.g., roads, shopping centers, hospitals)
Higher demand for gated communities and private rentals
Diaspora-driven investments and Airbnb-style rentals
Estimated growth:₵100,000 property in 2015 → ₵250,000 to ₵300,000 by 2025 (pure capital gain of ~200%).
1.2 Rental Income
If you had rented out your property over the decade:
Average monthly rent (₵1,500) × 12 months × 10 years = ₵180,000
Even adjusting for periods of vacancy or maintenance (~20%), you’d still have net rental earnings of ~₵140,000
📊 Total Value = Capital (₵260k avg) + Rental Returns (₵140k) = ₵400,000
💰 2. How Does That Compare to Other Investment Options?
Investment Type | Avg Annual Return | Value after 10 years (₵100k) |
Real Estate | ~15% | ~₵400,000 |
Treasury Bills (avg) | ~13% | ~₵340,000 |
Savings Account | ~6% | ~₵180,000 |
USD Fixed Deposit | ~5% | ~₵162,000 (adjusted) |
Ghana Stock Exchange | ~9-10% (volatile) | ~₵260,000 |
Takeaway: Real estate offers a powerful mix of capital growth and income, with relatively lower volatility than stocks and higher returns than savings or forex deposits.
🏡 3. Why Real Estate Works in Ghana
3.1 Inflation Hedge
Even as inflation fluctuated between 9% and 54% over the past decade, property values and rents have typically kept pace or even outstripped it — making real estate a strong store of value.
3.2 Tangible Asset
Unlike paper assets, land and buildings offer physical security. Ghanaians tend to trust property more than equities or pension funds.
3.3 Diaspora Demand
Between 2020 and 2024, diaspora remittances into real estate boomed, pushing prices up and creating liquidity in previously sluggish areas.
⚠️ 4. Risks and What to Watch
While the returns are compelling, there are real risks:
Land disputes and titling delays
Liquidity: Real estate isn’t easily sold on short notice.
Maintenance: Rental property owners often face repair costs, tenant disputes, or vacancies.
Regulatory shocks: New land laws or taxes can affect profitability.
🧠 5. Lessons for Today’s Investor
If you missed the 2015 wave, here’s how to approach 2025 smartly:
Target growth corridors: Look into areas like Amasaman, Oyibi, Nsawam, and Kasoa with planned infrastructure.
Go for dual-use properties: Homes that can also be Airbnb units or commercial spaces.
Partner through REITs: Real Estate Investment Trusts will allow smaller investors to participate in the market.
Use tech tools: Platforms now exist to find, evaluate, and manage property virtually.
🏷 Trending Topic: #GH-Card Cashless Tolls
The digitalization agenda steps up with Ghana's rollout of cashless toll payments via Ghana Card-linked wallets. While promising efficiency and transparency, its implementation will test digital infrastructure readiness and user adaptability.
Conclusion
This week’s Cedi Board provides a lens into Ghana’s shifting economic narrative. Rising exports, cautious monetary optimism, and investment potential make for a complex but hopeful outlook. At Finex Skills Hub, we continue to break down the numbers — so you can stay ahead of the curve.
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