Ghana must sustain fiscal discipline to prevent another debt crisis – Analyst

Finance and tax analyst Nelson Cudjoe Kuagbedzi has urged the government to maintain strict fiscal discipline and avoid a return to excessive borrowing following the completion of Ghana’s external debt restructuring programme.

According to him, the successful conclusion of the debt restructuring process will only deliver lasting benefits if it is supported by responsible debt management and sound economic policies.

Kuagbedzi said although Ghana has brought an end to a difficult fiscal recovery exercise, the country must learn from the circumstances that led to the Domestic Debt Exchange Programme and the subsequent external debt restructuring.

Speaking on Citi Business News, he stressed that the completion of the debt exchange should be viewed as a new beginning for stronger financial management rather than the end of efforts to stabilise the economy.

“Going forward, prudent debt management coupled with sustained macroeconomic gains must be our watchword. We must not go back to the days of unsustainable debts and domestic debt exchange programme,” he said.

His comments follow the government’s announcement that it had successfully completed the exchange of the outstanding SADEREA Notes, which represented the final stage of Ghana’s sovereign bond debt restructuring.

Kuagbedzi described the development as an important achievement for Ghana’s capital market, noting that the debt restructuring journey had been extremely challenging for many citizens and investors.

He commended Finance Minister Dr Cassiel Ato Forson and Bank of Ghana Governor Dr Johnson Asiama for what he described as coordinated efforts in bringing the process to a close.

The analyst said completing the restructuring could help improve Ghana’s credibility among international investors and strengthen the country’s chances of regaining access to global financial markets.

He noted that Ghana’s current B- credit rating with a positive outlook could improve further if investor confidence continues to recover.

Kuagbedzi added that the government’s commitment to honouring debt obligations has helped rebuild trust among market participants and could contribute to deeper investment activity within the domestic capital market.

He further expressed optimism that stronger governance systems, ethical leadership and improved fiscal oversight would prevent the country from repeating past mistakes that resulted in the debt crisis.

“The control environment, the ethical leadership and the tone at the top has given market players enough assurance that we will not get back to the days of unsustainable debt,” he stated.

Prince Antwi

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