The Economic Governance Platform (EGP), hosted by the Ghana Anti-Corruption Coalition (GACC), has launched a landmark report titled Sustainable Debt Management in Ghana.
The report forms part of the Citizen Action for Sustainable Debt Management Project, supported by the Open Society Foundations (OSF).
The comprehensive study consolidates expert analysis across three key areas—political economy, legal and institutional frameworks, and fiscal transparency—and aims to reform how Ghana accumulates, manages, and reports public debt.
It is expected to serve as a critical resource for policymakers, civil society, and development partners committed to Ghana’s economic resilience.
Urgent Need to Break the Cycle of Bailouts
At the launch event in Accra, Abdulkarim Mohammed, Coordinator of the Economic Governance Platform, stressed the urgency of addressing Ghana’s unsustainable debt trajectory. He noted that despite receiving at least 17 IMF bailouts since independence, the country still lacks a robust debt management framework.
“Each time we face an economic crisis, unsustainable debt accumulation is at the heart of it,” he said. “This report is our contribution to ending this cycle of repeated mistakes.”
Three-Pronged Focus for Reform
Mr. Mohammed explained that the report is organized into three core areas: the political economy of debt, the legal and institutional mechanisms for debt governance, and frameworks for transparency and accountability.
While debt-related discussions have occurred on various platforms, he said this report is the first to offer a consolidated, evidence-based analysis with actionable recommendations.
“This study is not just academic—it is a tool for advocacy, a call for accountability, and a roadmap for sustainable fiscal governance.”
The report highlights that Ghana’s debt accumulation is driven not only by fiscal necessity but also by political expediency. It also identifies issues such as judgment debts, flawed procurement processes, exchange rate depreciation, and weak financial oversight as key contributors.
Civil Society’s Role in Accountability
Mr. Mohammed urged civil society organizations to use the report as an advocacy tool to push for transparency and accountability in public finance.
“We believe this report will spark policy dialogue and serve as a foundation for reform and strategic planning.”
A Timely Report Amid Ongoing Restructuring
The launch drew participants from government agencies, civil society, academia, and development partners. With Ghana currently undergoing debt restructuring under an IMF-supported programme, the report arrives at a critical time.
Prof. Bokpin Calls for Stronger Fiscal Institutions
Godfred Bokpin, Economist and Professor of Finance at the University of Ghana , echoed the report’s concerns and called for structural reforms and stronger fiscal institutions to address Ghana’s recurring debt crises.
He advocated for the operational independence of the Fiscal Council, which he said must be free from political interference and act as a watchdog over public borrowing.
“The Fiscal Council must not exist only on paper. It should play an active role in promoting debt transparency, accountability, and prudent fiscal policy,” he said.
Addressing Revenue Gaps and Tax Inequities
Prof. Bokpin urged the government to strengthen domestic revenue mobilization, reduce tax exemptions, and adopt a more progressive tax system.
“Our over-reliance on indirect taxation disproportionately affects the poor, especially women in the informal sector,” he noted.
Public Procurement Flaws a Major Concern
He also cited findings from IMANI and the Africa Centre for Energy Policy (ACEP), which revealed that nearly 80% of high-value public contracts between 2012 and 2022 were awarded through sole sourcing, often without justification.
“Sole sourcing should be the exception, not the norm. It encourages inefficiency, poor value for money, and political patronage.”
Technology and Oversight for Transparency
Prof. Bokpin recommended strengthening institutions such as the Office of the Special Prosecutor (OSP) and EOCO, and called for the adoption of technologies like blockchain to enhance transparency in public finance.
“We must reform service delivery and eliminate inefficiencies before introducing realistic utility tariffs. Consumers should not bear the cost of mismanagement.”
Legal Reforms Must Be Enforced
He welcomed amendments to the Fiscal Responsibility Act and moves to reform the Fiscal Council but cautioned that legal reforms must be backed by real enforcement.
“Ghana’s breach of the 5% fiscal deficit ceiling in 2018, by excluding energy and financial sector bailout costs, shows how easily laws can be bypassed without strong oversight.”
Parliament Must Ensure Accountability
Prof. Bokpin urged Parliament to go beyond approving loan agreements and ensure proper oversight of how funds are utilized.
“The issue is not borrowing it’s what we do with borrowed funds. We must ensure loans are channelled into growth-enhancing investments and hold ourselves accountable.”
GACC Calls on Media to Amplify Debt Report’s Impact
Launching the report, Mrs. Beauty Emefa Narteh, Executive Secretary of GACC, called on journalists to use it as a powerful resource to educate, inform, and shape public discourse.
“Too often, attention is given to the event of a report launch. But what really matters is how we use the findings. This report is a goldmine journalists should explore it to spark national conversations,” she said.
Mrs. Narteh highlighted the vital role of the media in counterbalancing polarized political commentary and presenting facts that the public can understand and act on.
“In an environment dominated by NDC-NPP narratives, the media must remain independent and drive fact-based, people-centered reporting. If we don’t ask the right questions, change won’t happen.”
She praised the report’s accessibility in digital format and encouraged journalists to dig deeper, craft impactful stories, and influence policy decisions.
Source: Isaac Kofi Dzokpo/newsghana.com.gh
