Three-Year Wait: Analyst Asserts Government’s Inability to Access International Capital Market
Political risk analyst Dr. Theo Acheampong asserts that it will take at least three years before the government can return to the international capital market. In his view, the immediate priority for the government should be the restructuring of the country’s debt.
During an interview, Dr. Acheampong emphasized that the country is currently not in a position to access the market for financial assistance.
He pointed out that even if the government were to seek funding, the current creditors would be unable to provide the necessary resources. From his perspective, it is clear that the government cannot consider approaching the market for at least the next three years.
President’s Optimism Challenged: Analyst Disagrees on Government’s Return to Global Market
Earlier this week, President Akufo-Addo expressed confidence in the government’s ability to return to the international capital market during an interview at the Qatar-Africa Economic Forum.
He acknowledged that international funding had been a valuable source of support for the government in its initial years and emphasized the importance of maintaining fiscal discipline for future success.
Immediate Priority: Debt Restructuring Essential for Ghana’s Financial Recovery
In contrast, Dr. Acheampong strongly disagrees with the President’s optimism, considering it an unrealistic goal. He believes the government should instead focus on the task of “restructuring our external debt.”
According to him, the government’s statements indicate a willingness to borrow again if the conditions improve. However, Dr. Acheampong highlights the pressing need to address the challenge of restructuring external debt, as the country has recently entered into an IMF program.
Practical Solution: Focus on Domestic Revenue and Reduced Expenses to Avoid External Borrowing
Dr. Acheampong provides a practical solution by suggesting that the government should concentrate on rebuilding the country’s finances by increasing domestic revenue sources, financing development projects internally, and reducing unnecessary expenses. He emphasizes that by implementing these three measures, the government can avoid the necessity of seeking external funding.