DDEP undermines diaspora bond drive despite strong remittance growth - Atuahene

Ghana’s renewed effort to mobilise diaspora funding through bond instruments is drawing increased scrutiny, as concerns over the Domestic Debt Exchange Programme (DDEP) continue to weigh on investor confidence.

The caution comes despite rising remittance inflows and plans by the Bank of Ghana to channel diaspora funds into structured investment vehicles to support long-term development financing.

Governor Johnson Asiama has outlined proposals including diaspora bonds aimed at converting remittances into productive investments. However, banking consultant Dr Richmond Atuahene warns that structural challenges and trust deficits remain key obstacles.

He noted that remittances have grown significantly, rising from about $4.8 billion to $7.8 billion in 2025, but argued that Ghana is still not fully harnessing their potential due to weak tracking systems and limited financial structuring.

According to Dr Atuahene, strengthening monitoring and data systems could reduce the country’s reliance on external capital markets. He cited examples from other countries, including Ethiopia, where diaspora funds have been effectively used to finance major infrastructure projects.

However, he cautioned that investor confidence remains fragile in the aftermath of the debt restructuring programme. He pointed out that some investors have suffered losses and face extended repayment timelines, which could discourage participation in new diaspora bond initiatives.

While acknowledging improvements in Ghana’s macroeconomic outlook, Dr Atuahene stressed that credibility and trust will be crucial to the success of any diaspora financing strategy.

He emphasised the need for strong safeguards, transparency, and clear assurances on returns and principal repayment to rebuild investor confidence and attract sustained diaspora investment.