Ghana’s macro stabilisation has improved sentiment, but lenders remain disciplined. Committees are focused on delivery, policy credibility and repayment capacity. For sponsors, this means price discovery for long tenor debt is driven less by headlines and more by the evidence inside the file. Cash generation, currency management and governance carry as much weight as sector growth stories. Where the numbers and the operating plan speak clearly, pricing tightens and tenor stretches. Where they do not, spreads widen and conditions multiply.
Sovereign risk reaches corporate borrowers through several channels. The first is the cost of hard currency. Movements in the sovereign curve shape the base from which lenders build a price for private credits. The second is access to foreign exchange. Dollar availability and the predictability of conversion affect the feasibility of service on external debt. The third is regulation and tax. Policy decisions can change working capital needs, import timing and netbacks. Lenders therefore test a company’s ability to operate through policy noise rather than away from it. The burden of proof sits with the sponsor.
Currency is central to pricing. Transactions that blend hard currency and local currency components, with a clear logic for each, tend to be viewed as lower risk. A common approach is to finance imported equipment and foreign services in dollars while funding local operating needs in cedis. Such a mix reduces currency mismatch and makes the repayment story easier to defend. Where revenues are in cedis, lenders will ask how exposure is contained. Indexation, export legs, dollar linked contracts, and credible pass through clauses can help. The model must show how each tool behaves in practice, not in theory.
Working capital discipline is the next lever. Long tenor debt only works when cash turns are predictable. Investors want to see how inventory, receivables and payables move across a cycle, and how the business protects liquidity in a soft quarter. Simple instruments such as supply chain financing for key inputs, receivables discounting from reliable buyers, and maintenance of minimum cash covenants can reduce perceived risk. Presenting these tools as part of the operating rhythm, not as last resort measures, supports better pricing.
Capex phasing matters. Sponsors who stage investment against verifiable demand and installation timelines tend to clear committees faster. A credible plan ties vendor milestones to drawdowns and places acceptance testing and performance guarantees in plain view. Lenders are alert to the cost of delay. Where installation, commissioning or permitting can slip, the case should quantify what happens to service and how the business can absorb it. Tenor is awarded to those who show they can manage time, not just spend it.
Tax and regulatory compliance is non negotiable. Lenders now ask for evidence rather than assurances. Up to date filings, proof of statutory payments, and a clean dispute log reduce noise in diligence. Firms that maintain documented compliance processes price better because they reduce the fear of surprises. Where there are legacy issues, address them early and provide a cure plan with dates. Silence is costly.
The most persuasive materials are concise and aligned. An investment case that links the market thesis, the operating plan and the financial model in one consistent story earns trust. Unit economics should be explicit. Show landed cost, conversion cost, overhead and margin, with sensitivity to currency, energy and key inputs. Separate contracted demand from pipeline and be honest about ramp profiles. Keep the repayment schedule simple and show headroom under conservative assumptions. A short annex that reconciles model outputs to management accounts is worth more than glossy pages.
ESG is now part of price. Lenders who carry impact mandates will pay for clarity. Do not claim what you cannot measure. State the few indicators that are material to your operation and show the baseline and the path. Jobs created, local sourcing, energy intensity or waste diversion are useful if the data is reliable and can be tracked without heavy overheads. Where a project has a credible environmental gain, consider whether carbon or similar revenue can be evidenced and audited. The goal is not to add slogans but to strengthen the credit.
Governance lowers spreads. Committees respond to boards that meet, auditors who challenge, and management teams that disclose. If there is a related party, explain it and show the pricing. If there are off balance sheet exposures, put them on the table. If there is supplier or customer concentration, set out the mitigation. The appetite for long tenor increases when the house looks in order.
For sponsors seeking tenor beyond 5 years, three practices help. First, present a repayment plan that can survive ordinary shocks without refinancing. Second, match amortisation to cash seasonality rather than to a neat calendar. Third, include a small liquidity backstop that is real and callable, not a line that vanishes in stress. These points are simple, but they change the discussion from hope to control.
There are recurring red flags that push price up. Overreliance on assumed devaluation paths without showing how the business would respond. Models that earn their return through working capital bloat rather than efficiency. Debt service covered only at full ramp with little room for delay. Sensitivity tables that move one variable at a time and never combine them. Each signals fragility. Replace them with concrete operating levers, dated milestones and actual covenants you can live with.
In the Ghana context, committees are looking for clarity more than creativity. They want to see demand that holds, costs that can be managed, and a path to free cash flow that does not depend on perfect conditions. They want a governance frame that reduces uncertainty and a management team that communicates with discipline. Sponsors who provide this earn firmer term sheets and cleaner diligence. The price of long tenor capital will then follow the quality of the file, not the noise of the day.
For companies preparing to raise, begin with alignment. Get the numbers, the operations and the story to say the same thing. Decide the currency mix for sound reasons. Phase capex to prove capacity with cash, not just with equipment. Put compliance beyond question. Then ask for the tenor you can support. The market will reward preparation that looks like ownership.
