Professor Godfred Alufar Bokpin, an Economist, has emphasized the importance of the Ghanaian government effectively utilizing the GH¢61 billion savings generated from the Domestic Debt Exchange Programme (DDEP). This program, conducted under a US$3 billion loan-support arrangement with the International Monetary Fund, is expected to provide the government with significant fiscal space between 2023 and 2031.
During a roundtable discussion on Ghana's debt restructuring, Prof. Bokpin underscored the need for intentional efforts to invest savings in sectors such as agriculture, agribusiness, and manufacturing. He stressed the importance of making the business environment conducive in these sectors to maximize their growth potential.
Expressing concern over previous debt relief programs like the Heavily Indebted Poor Countries (HIPC) initiative, Prof. Bokpin noted that, unlike past initiatives where specific projects were implemented, the DDEP lacks such requirements, giving the government flexibility in spending the saved funds. He urged caution against initiating projects that may not be completed promptly, especially during election years.
Furthermore, Prof. Bokpin encouraged the government to expedite external debt negotiations to achieve debt sustainability targets by 2028. While domestic debt restructuring has been completed, negotiations with external creditors are ongoing, and flexibility is essential to ensure fiscal reforms complement the country's economic goals.
In conclusion, Prof. Bokpin emphasized the need for prudent utilization of the savings from the DDEP to drive economic stability and benefit the Ghanaian populace. He called on the government to prioritize productive investments and deepen fiscal reforms to achieve long-term sustainability.