Ghana’s Investment Readiness: Dr. Wisdom Dogbey Highlights Finance Ministry’s Fiscal Reforms and Debt Strategy
Dr. Wisdom Dogbey, Economic Advisor at the Ministry of Finance, has emphasized Ghana’s commitment to fiscal discipline and prudent debt management as key strategies for attracting fresh investments.
Speaking during the NorvanReports and Economic Governance Platform (EGP) X Space discussion on the topic, “Ghana’s Investment Pitch: Are We Ready to Compete in the Global Market for Fresh Investments?”, on Sunday, he outlined the government’s approach to addressing economic risks and restoring investor confidence.
Debt Sustainability and Fiscal Discipline
Dr. Dogbey noted that the primary risk in Ghana’s financing model remains its high public debt levels, which pose sustainability concerns and potential deterrence for investors.
“The Finance Minister focuses on the critical risks associated with the financing model and how these risks are being addressed. The primary risk is still the high level of public debt, raising concerns about sustainability and the ability to service these obligations,” he stated.
However, he highlighted that the government has introduced fiscal consolidation measures, including public spending rationalization and a focus on revenue-generating investments.
“The budget underscores our commitment to fiscal discipline, aiming to eliminate wasteful expenditure while prioritizing essential investments,” he added.
Efforts to Stabilize Inflation and Exchange Rate
Inflation and cedi depreciation continue to present challenges to Ghana’s investment climate. To mitigate these risks, Dr. Dogbey cited the passage of the Gold Board Bill, which is expected to enhance Ghana’s foreign exchange reserves.
Additionally, the government is implementing strategies to curb food inflation, thereby boosting purchasing power and investor confidence.
“We cannot rely on bonds at this time, so our funding sources are limited, but there is light at the end of the tunnel. We are improving domestic revenue mobilization without increasing consumer taxes,” he assured.
Restructuring and Long-Term Debt Strategy
As part of efforts to ensure long-term debt sustainability, the government has recalibrated its debt strategy. Dr. Dogbey emphasized that the restructuring process has allowed for a shift towards longer-maturity debt instruments, reducing refinancing risks and potential liquidity crises.
“One of the most notable changes in Ghana’s debt strategy is the renewed emphasis on sustainability. The government is committed to reducing the debt-to-revenue ratio to more manageable levels,” he stated, adding that there is a focus on prudent borrowing practices aligned with economic growth prospects.
He also highlighted ongoing efforts to reopen the domestic bond market to reduce reliance on treasury bills. “The Finance Minister is leading efforts to enhance transparency and accountability in debt management, including strengthening public financial management reforms,” he noted.
Investor Confidence and Economic Outlook
Dr. Dogbey acknowledged that Ghana is still navigating fiscal challenges, with significant debt obligations looming in 2027 and 2028. However, he expressed confidence in the government’s ability to implement necessary reforms to manage these financial burdens effectively.
“The restructuring has laid the foundation for a long-term vision for economic recovery and resilience. Structural reforms across various sectors will further support sustainable debt management and economic stability,” he concluded.
With these proactive measures in place, Dr. Dogbey believes Ghana is taking significant steps to create a more robust fiscal framework that will encourage both local and foreign investments, ultimately driving sustainable economic growth.
