Professor Williams Kwasi Peprah, a financial expert and associate professor of economics at Andrews University in Michigan, United States of America, has advised investors and the youths to take advantage of the current debt restructuring as a result of the economic situation in Ghana to invest in stocks, because they will reap the benefits in the future.

According to the Associate Professor of Economics, the timing favors the youths since it’s a long-term investment and few years to come, they will reap its benefits.

“Now, probably, is the best time to purchase a stock. Because the prices are low, if you are young– between the ages of 35 [and] 40… it is the best time for you to enter the stock market, because you have time to enjoy the gain and dividend.”
Professor Williams Kwasi Peprah

However, Prof Peprah noted that there are some other age groups who are still interested in lapping quality stocks during the times when share prices are declining, he advised them to also try and invest.

“Still, with our human nature, there are some of us who want to focus on capital gain or appreciation. So, some of us will still be investing in the stock market.”
Professor Williams Kwasi Peprah

Professor Williams Kwasi Peprah, meanwhile, charged the government to provide “safety net” for poor pensioners to have some respite.

Threshold for Pensioners Must be Reviewed

A similar sentiment was shared by Professor Stephen Adei, an educationist and economist, who suggested that the government review the threshold for pensioners who may be affected by the DDEP.

Prof Adei argued that this will ensure that those who are vulnerable and financially unstable are exempted from the programme.

The educationist warned that the country risks losing lives in the coming weeks if the government fails to review the threshold for pensioners.

“To my colleague pensioners, it is because when we got our lump sum, our life investments, we invested it into government bonds. So that is what is now at stake.

“There must be a threshold, so that there is a certain minimum. Other than that, some of my colleagues will physically die in a [few] weeks… it is a very serious matter.”
Professor Stephen Adei

The economist wants the government to step up efforts in educating Ghanaians on which categories of individuals are likely to be affected by the DDEP. “So much is being said without people understanding it,” Professor Adei said.

“We are talking about young people like you who are yet to go for pension and have invested in the bonds for their future. Communication has been terribly bad.”
Professor Stephen Adei

The Stock Market Continues to Go Down

In the intervening time, the stock market continues to struggle with Unilever Ghana being the latest victim with 9.52 percent share price depreciation in Thursday’s trading session.

The session on the Ghana Stock Exchange (GSE) ended with 27,203 shares, corresponding to a market value of GHS 29,218.67. Compared with the previous GSE trading day (Wednesday, January 18), Thursday’s data showed a 58% decline in volume and 69% decline in turnover.

The current market capitalization of the Ghana Stock Exchange is GHS 64.6 billion.

Meanwhile, the government has since set up a technical committee through the Finance Ministry to address concerns raised by the Individual Bondholders’ Forum on the Domestic Debt Exchange Programme (DDEP).

On Monday the Ministry of Finance extended the deadline to register for its domestic debt exchange to 31st January 2023 in order to “secure internal approvals” from the financial sector.