By Norman Adu BAMFO
On September 23, 2025, the Ministry of Finance, acting under Section 170 of the Public Financial Management Regulations, 2019 (L.I. 2378), issued a Request for Proposals (RFP) inviting banks and licensed securities dealers to submit applications for consideration as Primary Dealers (PDs) and Bond Market Specialists (BMSs) in the issuance of domestic treasury securities. Proposals are to be submitted no later than 11:00 GMT on Monday, October 6, 2025.
From a debt market perspective, the timing of the Ministry of Finance’s Request for Proposals (RFP) for Primary Dealers (PDs) and Bond Market Specialists (BMSs) is highly strategic. It is being introduced at a point when Ghana is gradually regaining the confidence of investors after an extended period of debt distress and restructuring.
The decline in Treasury bill yields, coupled with improved participation in auctions, reflects both tighter fiscal management and stronger liquidity conditions in the domestic market. These are encouraging signs, but they are not sufficient on their own to underpin large-scale bond issuance.
The PD/BMS RFP process is therefore critical to building the institutional backbone that will allow the government to transition from short-term financing reliance to medium- and long-term funding.
At its core, the PD/BMS structure addresses three technical challenges in Ghana’s debt market. First, it provides underwriting capacity, which gives the government confidence that auctions will not fail or require steep yield concessions in times of weaker demand.
Second, it establishes a reliable distribution mechanism to channel securities to both domestic and international investors, improving demand diversification. Third, it commits market makers to provide liquidity in the secondary market, reducing the risk premium investors normally build into illiquid securities. Together, these functions enhance price discovery and help create a smoother sovereign yield curve.
The sequencing of this reform ahead of potential new bond issuance is critical. Without designated dealers, the government risks launching longer-tenor securities into a fragmented market where participation is uneven and pricing is volatile. That environment could raise borrowing costs and discourage repeat investor participation.
By contrast, ensuring that credible, well-capitalized PDs and BMSs are in place beforehand means that when issuance resumes at the medium- or long-end of the curve, there will be intermediaries with both the balance sheet and distribution networks to support the process.
This provides a backstop against weak subscription, stabilizes yields, and sends a strong signal to rating agencies and creditors that Ghana’s issuance strategy is underpinned by robust institutional capacity.
From a debt analyst’s standpoint, the initiative is not without risks. Underwriting commitments could strain dealer balance sheets in periods of market stress, particularly if investor demand softens due to macroeconomic shocks or global risk aversion.
In addition, concentration of issuance power among a small group of institutions could amplify systemic risk if one or more PDs face liquidity challenges. This underscores the importance of careful selection, clear performance benchmarks, and strong supervisory oversight.
Ultimately, the PD/BMS RFP is more than an administrative or procedural step; it is a forward-looking signal that Ghana intends to issue bonds within a stronger, more disciplined framework; reduce issuance risk, lower borrowing costs, and extend the maturity profile of government debt.
If implemented effectively, it will deepen liquidity, foster the development of a credible yield curve, and broaden investor participation. This will position Ghana to re-enter its capital markets on firmer footing, with a more transparent and efficient issuance process that supports debt sustainability objectives.
>>>the writer is a seasoned professional in risk, finance, banking, and treasury management with over a decade of academic and industry experience. He holds an MPhil in Finance (UGBS) and a First-Class Honors BSc in Actuarial Science (KNUST), and is a Chartered Global Investment Analyst as well as an ACI-Certified Treasury Professional (Distinction). A member of ACIFMA Ghana, he also holds a Leadership and Management Certificate from IMD Business School, Switzerland. He serves as a Part-time Lecturer at the University of Ghana Graduate Business School and Instructor at the National Banking College. His dual engagement in academia and industry enables him to bridge theory and practice, advancing financial market knowledge, innovation, and governance across Ghana’s banking sector. He can be reached via [email protected] and or +233240402075
