Ghana On Dangerous Grounds

…Former Finance Minister Cautions

Former Finance Minister Seth Terkper has cautioned that Ghana is on dangerous economic grounds, urging swift action to prevent further decline. He warns that as the country transitions into an upper middle-income economy, it risks losing crucial international financial support, making self-sufficiency more critical than ever.

Speaking at the PWC Ghana 2025 Budget Digest Forum held at the Mövenpick Ambassador Hotel yesterday, Mr. Terkper stressed the need for Ghana to strengthen its domestic financial instruments, particularly the bond market, to stabilize the economy and avoid deeper financial distress.

He warned that the country is at a critical economic juncture and must act swiftly to avoid further decline. According to him, resetting Ghana’s economy requires strategic measures, including strengthening domestic financial instruments. He emphasized the need to nurture the domestic bond market, arguing that while Ghana’s bonds have historically been backed by principles rather than just market forces, a new approach is necessary.

“As a middle-income country, we are not going to be treated…you are required to cater for yourself, now if we become upper middle income with per capita about USD 4,000 we are likely to lose some or substantial if not all of concessional financing and grants, now where we are is dangerous and we don’t want to go down further, we must make sure we take ourselves out and nurture the domestic bond market” he said

Mr. Terkper suggested a hybrid strategy, combining both domestic and foreign bond investments, as a means of stabilizing the economy. He urged policymakers to take decisive action to ensure the country regains economic stability and avoids slipping into deeper financial distress. His remarks come in the wake of the recent budget presentation in Parliament, which has sparked widespread discussions on Ghana’s fiscal outlook and the government’s economic recovery plans.