Banking consultant and financial expert Dr. Richmond Atuahene has strongly cautioned against a “premature” return to the domestic bond market, warning that doing so without major structural reforms could be “catastrophic” for Ghana’s economy.
Dr. Atuahene emphasizes that the government must fix fundamental economic distortions before seeking long-term domestic financing again and argues that rushing back to the bond market now could replicate the policy errors that led to the 2022 default.
He asserts that investor confidence, severely battered by the Domestic Debt Exchange Programme (DDEP), has not yet recovered and returned without restored trust could force the government to accept unsustainably high interest rates, potentially triggering a fresh cycle of debt accumulation.
Dr. Atuahene proposes the government implement a “moderate” debt risk rating by 2028, targeting a debt-to-GDP ratio of 55%. Again, he advised the Government to aggressively mobilize revenue from large companies and high-net-worth individuals while ending tax waivers.
He concluded that corruption must be classified as a national crime and strengthen anti-corruption institutions to prevent the waste of borrowed funds.
