The former President of the Ghana Association of Banks, Alhassan Andani, has called for swift measures to restore Ghana’s creditworthiness as a crucial step toward reviving the economy and reestablishing the country’s standing in the international financial market. Mr. Andani emphasized the urgency of these actions, considering the current debt situation and the significant role domestic and bilateral creditors play in the country’s financial recovery.
Mr. Andani addressed these concerns at the launch of the Chartered Institute of Development Finance (CDF) Ghana. Mr. Andani highlighted that, restoring Ghana’s creditworthiness should be the primary focus of the government’s economic recovery strategy.
Mr. Andani stressed that, a strong reputation in the international financial community would enable Ghana to regain access to the international capital market, which is crucial for securing funding for development projects and sustaining economic growth.
“I think we have to restore as quickly as we can our creditworthiness, our reputation as a country. For me, that is whether it’s in the short term, the medium, or long term, our biggest problem is to reestablish as quickly as possible our creditworthiness.”
Alhassan Andani the former President of the Ghana Association of Banks
Strategic Engagement with Debt Holders
Mr. Andani further advised the government to adopt a strategic approach in its dealings with both domestic and international debt holders. Mr. Andani pointed out that, domestic debt holders bore the brunt of the country’s debt restructuring efforts and therefore deserved mature and considerate engagement from the government.
“Given that the domestic debt holders were the most significant, governments must have mature conversations with these debt holders.”
Alhassan Andani the former President of the Ghana Association of Banks
Mr. Andani emphasized. “Let’s see how we can immediately wash up and freshen up ourselves, and hopefully, our external partners can have a look at us.” Mr. Andani underscored the importance of regaining the confidence of bilateral creditors, noting that Ghana’s exposure to bilateral debt was substantial but manageable.
“Our bilateral’s were not that badly hit, five billion was not that high. Their total exposure is five billion dollars.”
Alhassan Andani the former President of the Ghana Association of Banks
Meanwhile, Reverend John D. Edudzie Chapter President of CDF Ghana, echoed Mr. Andani’s sentiments and has equally called for the government to focus on mobilizing domestic finance as a means of resolving Ghana’s economic challenges. Rev. Edudzie emphasized the importance of development finance in addressing the country’s unique issues and stressed the need for a holistic approach to financing development efforts.
“Funding for resolving our problems, and that is why developing finance is key, it is key to resolving and understanding our peculiar issues and providing mobilization for addressing those issues.”
Reverend John D. Edudzie Chapter President of CDF Ghana
Rev. Edudzie also highlighted the launch of CDF Ghana as a significant milestone in the country’s development finance landscape.
The Chartered Institute of Development Finance, established 11 years ago, provides a platform for fostering discussions and developing solutions that are specific to the financial challenges faced by Ghana and other developing countries.
“Today, we are just doing this launch to let Ghana [and] the world know something, that this is no more an idea, it is no more a thought. There is a platform, an opportunity for us all to put our thoughts together, develop solutions, engage the discussion, and broaden the discussion.’’
Reverend John D. Edudzie Chapter President of CDF Ghana
However, Alhassan Andani’s comments at the CDF Ghana launch emphasized the urgent need for the Ghanaian government to prioritize restoring the country’s creditworthiness. The pathway to recovery, he suggested, lies in strategic engagements with debt holders, both domestic and international, and a focus on freshening up the country’s financial image. Mr. Andani’s call for “mature conversations” with domestic debt holders suggested a shift toward more transparent and accountable economic governance.
The concerns raised by Andani and Rev. Edudzie highlighted the broader challenges facing Ghana’s economy. While restoring international confidence is critical, the development of local financing mechanisms is equally important. Development finance institutions like CDF Ghana are positioned to play a vital role in this process by offering a platform for discussion and action on financial issues unique to Ghana. Restoring Ghana’s creditworthiness is not only about accessing international capital markets but also about strengthening domestic financial mechanisms to address local development challenges.
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