Short term foreign investors pulled $938.2 million from Ghana in December 2025, marking the largest monthly withdrawal in two years, Bank of Ghana (BoG) data shows.
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The December outflow doubled the $468.7 million exit recorded in September 2025, underscoring growing caution among portfolio investors who trade government bonds and treasury bills. Despite this retreat, Ghana’s broader financial account remained robust, climbing from $321.9 million in December 2024 to $5.09 billion by December 2025, equivalent to 4.5% of gross domestic product (GDP).
Portfolio investment liabilities, which track foreign purchases of domestic securities, began positively in early 2024 before turning negative. March 2024 recorded a modest $6.2 million inflow. By June 2024, the figure reversed to a $24.2 million outflow. Withdrawals stayed relatively contained through September 2024 at $10.9 million and December 2024 at $26.5 million.
The trend accelerated sharply through 2025. March saw outflows of $144.6 million. June recorded withdrawals of $255.8 million. September’s $468.7 million departure preceded December’s record $938.2 million withdrawal, the largest quarterly outflow documented in recent Bank of Ghana records.
Over this two year period, portfolio flows swung dramatically. What started as a modest $6.2 million inflow in March 2024 transformed into nearly $1 billion exiting the country by December 2025. This shift signals heightened nervousness among short term market participants.
The retreat contrasts with positive developments in Ghana’s fixed income market. December 2025 saw robust trading activity in government bonds and treasury bills, with daily volumes often exceeding 1.9 billion cedis. Foreign institutional investors had returned to Ghana’s debt market in the second half of 2025 after withdrawing during the debt crisis period.
Portfolio inflows had accelerated initially as global fund managers increased emerging market allocations following United States Federal Reserve interest rate cuts. Ghana’s frontier market status and improved sovereign credit profile attracted investors seeking higher yields than developed markets offer.
The central bank’s latest monetary policy report confirmed Ghana ended 2025 with a provisional balance of payments surplus of $3.98 billion. Gross international reserves increased to $13.8 billion by December 2025, equivalent to 5.7 months of import cover. This compared favorably to $9.1 billion and 4.1 months of import cover recorded in December 2024.
The current account posted a provisional surplus of $9.1 billion for 2025, up from $1.5 billion in 2024. Strong gold export earnings, increased private transfers, and moderation in service and income payments drove the improvement.
Inflation fell from 23.5% in January 2025 to 6.3% in November 2025, reaching its lowest level since 2021. The cedi appreciated roughly 40.7% against the US dollar through 2025, recovering from a 19.2% depreciation in 2024.
Bank of Ghana reduced its benchmark policy rate from 21.5% to 18% by late 2025, then further to 15.5% in January 2026. Government bonds traded at yields ranging from approximately 12% to 16% across different maturities, offering attractive real returns as inflation stabilized.
The withdrawal of short term portfolio funds, while substantial, did not offset overall inflows into Ghana’s financial system. This suggests foreign investors continue supporting the economy selectively, preferring longer term commitments over short term positions.
Financial sector data showed total banking assets grew 21% in early 2024 following the Domestic Debt Exchange Programme (DDEP). The banking sector remained solvent, profitable and efficient throughout 2025, though non performing loans stayed elevated at 18.9% in December 2025.
The Ghana Stock Exchange Composite Index surged 79.1% through December 2025, closing around 8,755.59 points. Market capitalization exceeded 170 billion cedis, making 2025 one of the most prosperous years in recent history.
These mixed signals reflect Ghana’s position between stabilization and renewed investor confidence. While macroeconomic fundamentals improved dramatically through 2025, memories of the December 2022 debt default continue weighing on short term investment sentiment.
