We cannot afford business as usual on debt management – AGI tells incoming gov’t

The President of the Association of Ghana Industries (AGI), Dr. Humphrey Ayim Darke, has underscored the critical importance of effective debt management as Ghana approaches its December 7 election.

Speaking on Joy News’ PM Express Business Edition on Thursday, November 28, he stressed that the sustainability of the country’s economy hinges on how the incoming government addresses the nation’s growing debt burden.

“We are deeply concerned about the debt situation,” he stated.

“It is not just a matter of paying off what we owe; it’s about managing it in a way that doesn’t jeopardize our macroeconomic stability.

Debt, if mishandled, has the potential to destabilize everything—from our industries to the livelihoods of ordinary Ghanaians.”

Dr. Darke specifically pointed to the debt owed to Independent Power Producers (IPPs), which he described as a source of persistent instability.

“The IPP debt situation is a recurring challenge,” he noted.

“We’ve seen how unresolved debts in this sector lead to threats and disruptions that ripple through the economy. This has to stop.”

He called for a clear and actionable roadmap from the next government to not only resolve existing debts but also prevent the recurrence of such challenges.

“It’s not just about putting out fires,” he said.

“We need a forward-thinking approach. How are we going to manage our debt obligations in a way that doesn’t cripple the economy or scare off investors?”

Dr. Darke also emphasized the need to tie debt management strategies to broader macroeconomic goals, including exchange rate stabilization and tax reforms.

“Debt and exchange rates are interconnected,” he explained.

“A poorly managed debt situation impacts our exchange rate, which in turn affects the competitiveness of our industries. The next government must take a holistic view of these challenges.”

The AGI president highlighted the urgency of addressing these issues, particularly in light of the global economic climate.

“We cannot afford to operate in isolation,” he said.

“Debt is not just a domestic issue; it affects our standing internationally and our ability to attract foreign investment. We need to show that we have a credible plan.”

Dr. Darke concluded with a plea for innovation in handling Ghana’s fiscal challenges.

“This is not the time for business as usual,” he warned.

“The stakes are high, and the incoming government must demonstrate that they can manage our resources wisely and sustainably.”