Prioritising debt repayment key to investor confidence – Professor Bokpin

Economist at the University of Ghana Business School (UGBS), Professor Godfred Bokpin, has defended government’s decision to prioritise debt repayments over other public spending, saying the move is necessary to rebuild investor confidence and support Ghana’s economic recovery.

Speaking on JoyNews on Monday, July 6, 2026, Professor Bokpin said that although many contractors and other stakeholders are awaiting payments from government, restoring confidence in Ghana’s debt market must remain a priority due to its long-term benefits for the economy.

According to him, the country’s recent debt restructuring has created fiscal space that is helping the economy recover, making it important for government to honour its obligations to creditors.

“There are various stakeholders in the economy who make claims on government resources. But given our experience with the debt crisis, we are prioritising creditors over other claims because we need to restore and consolidate investor confidence,” he said.

He explained that some contractors are still owed for work done over the past two years, but argued that government cannot meet all financial obligations at the same time due to limited fiscal space.

“There are contractors and others who probably haven’t been paid from last year or even two years ago, but we are prioritising the debt market because of its implications,” he stated.

Professor Bokpin also credited Ghana’s external creditors for helping the country recover from its debt crisis, noting that Eurobond holders made significant sacrifices that contributed to economic stabilisation.

“Those who gave Ghana the opportunity to be alive today were actually the Eurobond holders. They sacrificed more than $4.7 billion through debt haircuts and the rescheduling of payments, creating the fiscal space for the country to have the future we are talking about,” he said.

He added that bilateral creditors also played a key role in Ghana’s recovery by providing about $2.8 billion in debt relief, describing their support as crucial to the country’s economic outlook.

Government settles US$700 million Eurobond obligation - Finance Ministry

Professor Bokpin further urged government to continue strengthening confidence in the financial markets by remaining faithful to its debt obligations, while exploring opportunities to attract foreign capital through the domestic bond market.

“We don’t need to wait until 2028 before we are faithful to our debt holders. If we want to build credibility, it’s important that we continue to prioritise the debt market and restore investor confidence,” he noted.

While acknowledging concerns over the rising cost of living, Professor Bokpin suggested that short-term sacrifices may be necessary to secure long-term economic stability.

“I will probably advise you to keep your plate empty a bit,” he remarked, explaining that rebuilding confidence in the economy today would create conditions for stronger growth and improved living standards in the future.

ANAS/MA

Inside the AI revolution that could save lives on Ghana's roads