Barriers of Project Bond Initiatives in Infrastructure Financing in Ghana

Abstract

This research was centred on examining the barriers of project bond initiatives in infrastructure financing in Ghana. The use of project bond; an alternative form of financing infrastructural projects throughout the world became intensified after the global financial crisis which led to stricter banking regulations. The introduction of project bonds in Ghana has not seen much growth due to some inherent challenges identified. The analysis depicted predominant challenges like lack of industrial expertise, currency issues, being the cedi-dollar exchange rate due to the constant depreciation of the Ghanaian Cedi and unavailability of project bond investors. The gaps in literature identified in this study set the course for future studies in this field in Ghana. The paper provides information for policy makers and investors on the major barriers affecting project bond initiatives in infrastructure in Ghana. The evidence suggests that these challenges have curtailed project bond initiatives in the country.