Nelson Cudjoe Kuagbedzi, Head of Finance at Merban Capital Limited, has strongly advised the government against an early reentry into the international capital markets.
Speaking on JoyNews’ AM Show, he argued the country should focus first on shoring up its fiscal foundations.
“Now is not the time”
“Going back to the international capital market should not be an option for now,” Kuagbedzi said.
“Seal the leakages in revenue, mobilise enough domestic revenue and control your expenditure.
Fiscal prudence is key in managing an economy.”
He added that sustained fiscal deficits without discipline would exacerbate Ghana’s debt burden, urging the maintenance of the debt-to-GDP ratio within internationally acceptable levels.
Aligned with World Bank warnings
Mr. Kuagbedzi’s remarks echo a recent warning from the World Bank, which counsels against a hasty return to the Eurobond market.
The Bank has cautioned that credibility can’t be restored through fresh borrowing; instead, it must be rebuilt via discipline, transparency, and politically difficult reforms.
It also stresses strict adherence to the Medium‑Term Debt Management Strategy (MTDS) and clear, credible Annual Borrowing Plans.
The reform agenda: revenue, spending, transparency
Analysts highlight the internal path Ghana must tread: boosting revenue mobilisation by plugging systemic leakages and broadening the tax base, rationalising public spending so it aligns with realistic revenue projections, and implementing institutional reforms to enhance transparency and governance.
Patience, they argue, is equally important — rebuilding credibility will take time, and premature external borrowing could backfire.
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