Debt repayment must remain top priority to rebuild investor confidence – Prof. Bokpin

Economist at the University of Ghana Business School (UGBS), Professor Godfred Bokpin, has defended the government’s decision to prioritise debt repayments over other public expenditure, arguing that the strategy is essential for restoring investor confidence and sustaining Ghana’s economic recovery.

Speaking on JoyNews on Monday, July 6, 2026, Professor Bokpin acknowledged that many contractors and other stakeholders are still awaiting payments from the government. However, he maintained that rebuilding confidence in Ghana’s debt market must take precedence because of its broader economic impact.

According to him, Ghana’s recent debt restructuring has created much-needed fiscal space, making it imperative for the government to honour its commitments to creditors and reinforce confidence in the country’s financial management.

“There are various stakeholders in the economy who make claims on government resources. But given our experience with the debt crisis, we are prioritising creditors over other claims because we need to restore and consolidate investor confidence,” he said.

Professor Bokpin noted that while some contractors have gone unpaid for work completed over the past one or two years, the government’s limited fiscal space means it cannot settle all outstanding obligations simultaneously.

“There are contractors and others who probably haven’t been paid from last year or even two years ago, but we are prioritising the debt market because of its implications,” he stated.

He also praised Ghana’s external creditors for the role they played in helping the country emerge from its debt crisis. According to him, Eurobond holders accepted significant financial losses by agreeing to debt restructuring terms that provided Ghana with the fiscal breathing room needed to stabilise the economy.

“Those who gave Ghana the opportunity to be alive today were actually the Eurobond holders. They sacrificed more than US$4.7 billion through debt haircuts and the rescheduling of payments, creating the fiscal space for the country to have the future we are talking about,” he said.

Professor Bokpin added that bilateral creditors also contributed significantly by providing about US$2.8 billion in debt relief, describing their support as critical to Ghana’s recovery efforts.

He further urged the government to maintain its commitment to timely debt servicing in order to strengthen market confidence and improve Ghana’s credibility among investors.

“We don’t need to wait until 2028 before we are faithful to our debt holders. If we want to build credibility, it’s important that we continue to prioritise the debt market and restore investor confidence,” he noted.

While recognising the financial difficulties many Ghanaians continue to face, Professor Bokpin suggested that short-term sacrifices may be unavoidable if the country is to secure lasting economic stability and growth.

“I will probably advise you to keep your plate empty a bit,” he remarked, explaining that restoring confidence in the economy today would lay the foundation for stronger growth and improved living standards in the years ahead.