Adnan Adams Mohammed
The government, through the finance ministry, is considering access to the domestic capital market as it plans to pivot around pension funds in restoring investor confidence and driving economic stability.
To reignite the moribund interest of investors in Ghana’s lowly rated instruments, the government has assured it will not default on its financial commitments.
Per the Domestic Debt Exchange Programme (DDEP) calendar, the government has obligations in 2027 and 2028. However, the finance minister has assured that the government is proactively operationalizing the sinking fund to provide strong backing for longer-term bonds.
“Ghana will not default ever again, not on my watch”, Dr. Cassiel Ato Forson boasted when speaking to representatives of pensions fund in Accra last week emphasizing that reopening the capital market is in the collective interest of all stakeholders, as it will help lower inflation, stabilize the cedi, and restore confidence in financial markets.
Dr Ato Forson called for the support of pension funds in line with their core investment strategy, which is to invest in bonds.
The meeting, also attended by Minister for Labour, Jobs, and Employment, Dr. Rashid Pelpuo, and Deputy Finance Minister, Thomas Ampem Nyarko, saw stakeholders express cautious optimism.
While pension fund representatives welcomed the initiative, they also voiced concerns based on past experiences.
Dr. Forson acknowledged these concerns, reaffirming the government’s commitment to building a resilient and sustainable financial system.
