GH¢61.7bn cost of DDEP concerning, but financial experts say investment is still key

By Wisdom JONNY-NUEKPE

Though the country has gone through a series of economic disruptions in the last few years, key among them being the Domestic Debt Exchange Programme (DDEP) costing a whooping GH¢61.7bn, central government must regardless innovate measures to rebuild confidence for investment, Banking Consultant Dr. Richmond Atuahene has said.

Dr. Atuahene was speaking at the 2025 Money Summit hosted by B&FT in Accra and said the country moved from the financial crisis in 2018 – when it spent some GH¢25billion equivalent to 7.1 percent of GDP – to the COVID-19 pandemic cost which was GH¢21.8 billion at the time, coupled with the economic downturn of 2022.

He disclosed that the last straw which broke the heart of pensioners and investors and derailed investments and savings was the DDEP, which cost government a whopping GH¢61.7billion.

“That was how much was lost to the pensioners, BoG, banks, individuals and all stakeholders including retail and institutional investors.”

He said what’s been so astonishing was that just as the dust is settling from the melee, President Donald Trump decided to slap a 10 percent tax on Ghanaian imports.

This decision, Dr. Atuahene said, will surely make the country’s imports expensive and exports uncompetitive – thereby creating some level of uncertainty for businesses.

Dr. Atuahene was providing a background and answering the question: “Considering all the macroeconomic pressures the country has faced in the past, what must central government do to improve the desire and appetite for investments?”

He maintained the nation must go on regardless, adding: “We however need pragmatic and bold leadership, as most of the country’s economic problems are self-inflicted.”

Equally, the CEO of Dalex Finance, Joe Jackson, explained that though investor confidence was badly damaged in the immediate past, the country cannot afford to come to standstill and remain paralysed on investment.

“The DDEP was once in a generation shock and just as the country has adjusted to post-COVID measures, there must be a way to reorganise and move ahead as a nation,” he said, emphasizing that debt servicing ratios and inflation must be holistically monitored and controlled.

Despite shocks of the DDEP, Mr. Jackson said investment is still the key solution and strategy to successful pensions.

The Summit’s theme, ‘Optimising investment and pensions management: Strategies for sustainable retirement income and economic growth’, reflects how long-term financial planning can become the means to having a successful retirement.

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