Ghana Government Bonds can be bought and sold after issuance on the Ghana Fixed Income Market (GFIM), the secondary-market platform operated under the Ghana Stock Exchange. SAS Investment Securities provides fixed-income brokerage access, allowing investors to trade Government of Ghana bonds through a licensed dealing intermediary rather than directly on GFIM.

What Is GFIM?

GFIM is Ghana’s organised marketplace for secondary trading of fixed-income securities. It was established by key market stakeholders, including the Bank of Ghana, Ghana Stock Exchange, Central Securities Depository, Ministry of Finance, and licensed dealing members.

Government of Ghana Treasury bills, notes, and bonds, along with Bank of Ghana money-market instruments, are automatically admitted and traded on GFIM.

Primary Market vs. Secondary Market

In the primary market, the government issues new bonds through auctions and primary dealers. In the secondary market, existing bonds are traded among investors on GFIM.

This distinction matters because a bond bought in the secondary market may be priced above or below its face value. If market interest rates rise, existing bond prices generally fall; if rates fall, existing bond prices generally rise. Your eventual return therefore depends on the purchase price, coupon payments, holding period, and sale or maturity price.

How SAS Investment Securities Fits In

SAS Investment Securities offers fixed-income trading services covering Treasury bills, Government of Ghana bonds, corporate bonds, and Eurobonds. Its process is straightforward:

1. Open a trading account with SAS Finance.

2. Fund the account with the required minimum investment amount.

3. Place a bid through SAS’s platform or dealer.

4. Receive allocation confirmation and a certificate.

5. Earn interest until the bond matures.

For secondary-market trades, SAS acts as the investor’s route into GFIM. GFIM rules restrict direct trading to authorised dealing entities, while other investors must trade through an eligible member such as a licensed broker-dealer.

How to Buy a Government Bond Through SAS

Step 1: Open and Fund an Account

Contact SAS Investment Securities to open a brokerage or fixed-income trading account. Prepare valid identification, tax-related information, and your funding source. Confirm the minimum investment amount before transferring funds.

Step 2: Specify the Bond

Ask for available Government of Ghana bonds and their key details:

• Bond name or ISIN

• Coupon rate

• Maturity date

• Clean price and dirty price

• Yield to maturity

• Accrued interest

• Minimum trade size

• Settlement date

Step 3: Place Your Order

You can place a bid through SAS’s platform or dealer. For larger trades, the broker may seek quotes from GFIM market participants; for smaller orders, execution depends on available liquidity and the broker’s access to inventory or counterparties.

Step 4: Review the Trade Confirmation

Before authorising, confirm:

• Purchase price and yield to maturity

• Face value purchased

• Accrued interest payable

• Brokerage commission and other charges

• Settlement date and payment amount

• CSD account details for custody

Step 5: Settlement and Custody

GFIM transactions settle in cash on the applicable settlement date, and trades must be executed through GFIM-approved electronic infrastructure. Your bonds should be recorded in the Central Securities Depository system, with SAS or your chosen custodian handling the operational process.

How GFIM Trading Works

GFIM supports several execution methods, including bilateral trades, request-for-quote (RFQ) transactions, firm or anonymous orders, and voice trades later captured in the system.

Primary Dealers and Bond Market Specialists provide two-way quotes on benchmark securities to support price discovery. This is important for retail investors because it helps create observable bid and offer prices, although liquidity can still vary by bond and market conditions.

Returns: Coupon Yield vs. Yield to Maturity

Do not judge a secondary-market bond only by its coupon rate.

• Coupon yield: Annual interest divided by face value. A 10% coupon bond pays GH₵100 per year on a GH₵1,000 face value.

• Current yield: Annual coupon divided by the price you actually pay.

• Yield to maturity (YTM): The more complete measure; it includes coupon income, purchase price, accrued interest, and the value received at maturity.

If you buy a 10% coupon bond below face value, your yield to maturity will usually be higher than 10%. If you buy above face value, your YTM will usually be lower than the coupon rate.

Risks to Understand

• Interest-rate risk: Bond prices move inversely to market yields; longer-dated bonds are usually more sensitive.

• Liquidity risk: Some bonds may have wide bid-ask spreads or limited buyers, making exit difficult.

• Credit and restructuring risk: Ghana’s Domestic Debt Exchange Programme reshaped the domestic bond market; understand whether a bond was affected and its current terms.

• Reinvestment risk: Coupon payments may need to be reinvested at lower prevailing rates.

• Operational risk: Confirm custody, settlement, and trade confirmation procedures with SAS before transferring funds.

Who Should Consider GFIM Bonds?

GFIM government bonds may suit investors who want longer-dated cedi-denominated fixed income than Treasury bills, regular coupon income, and the ability to sell before maturity. They are particularly relevant for investors with a defined maturity date, such as school-fee planning, business cash-flow management, or retirement income.

However, if you need guaranteed access to your money within days, a money-market fund, fixed deposit, or short-dated Treasury bill may be more appropriate. Government bonds can still be sold before maturity, but the sale price is not guaranteed.

Questions to Ask SAS Before Trading

• Is this a new-issue allocation or a secondary-market purchase?

• What is the bond’s current yield to maturity and maturity date?

• What are the full fees, including brokerage and custody charges?

• How much accrued interest must I pay?

• What is the settlement date and minimum trade size?

• Can I sell before maturity, and what liquidity does this bond currently have?

• How will interest payments be received?

• Is the bond held in my name at the CSD?

Key Takeaway

GFIM gives investors a transparent venue to buy and sell Government of Ghana bonds after issuance, while SAS Investment Securities provides the brokerage access needed to participate. The most important metric is not the coupon alone but the yield to maturity after price, accrued interest, fees, and settlement terms.

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