While Ghana’s recent early repayment of a US$700 million Eurobond signals stronger fiscal management, policymakers must not let this achievement obscure the deep-seated, structural vulnerabilities still plaguing the domestic economy. Speaking on the Asaase Breakfast Show on Tuesday, July 7, Dr. Eric Boachie Yiadom, a senior lecturer in Banking and Finance at the University of Professional Studies, Accra (UPSA), cautioned that despite improved debt indicators, the fundamental framework of the Ghanaian economy remains fragile and exposed to future macroeconomic shocks.
Dr. Boachie Yiadom emphasized that systemic issues—most notably high unemployment, inadequate job creation, and a stubborn reliance on importing finished goods while exporting raw materials—have largely remained unchanged. He pointed out that this heavy import dependency leaves the nation instantly vulnerable to global disruptions, citing how recent tensions around the Strait of Hormuz immediately triggered a spike in local fuel prices because the state lacked the buffer to cushion consumers even for a few weeks.
Turning to long-term sustainability, the finance expert stressed that the ultimate survival of Ghana’s economic recovery hinges on expanding domestic production and reducing reliance on imports, rather than celebrating temporary fiscal reliefs. He warned that the massive resources currently swallowed by debt servicing directly deprive critical sectors of the capital needed for infrastructure, public utilities, and employment generation.
Recalling the severe investor losses engineered under the recent Domestic Debt Exchange Programme (DDEP), Dr. Boachie Yiadom noted that while market confidence in government securities is gradually rebounding, investors remain highly cautious about committing capital to long-term bonds. He urged the government to leverage this current period of relative stability to build real economic resilience, advising that improvements in macroeconomic indicators will only become meaningful to ordinary Ghanaians when translated into tangible domestic gains, such as stable prices, lower inflation, aggressive agricultural and industrial growth, and sustainable jobs.
