UNDP Economist urges Ghana to build stronger capital market
By Praisebell Rosemond Larbi
A Senior Economist and Strategic Advisor at the United Nations Development Programme (UNDP) Regional Bureau for Africa, Jacob Assa has called on Ghana to deepen and strengthen its domestic capital market to reduce costly international borrowing, boost investor confidence and support long-term financing, entrepreneurship and sustainable economic development.
Addressing the opening of a two-day national workshop on strengthening sovereign credit ratings in Tema, Mr Assa noted that Ghana’s transition into a middle-income country has limited access to concessional financing, while international capital markets often present high borrowing costs.
“These conditions require Ghana to strengthen its domestic financial markets. A robust domestic capital market can help increase borrowing at reasonable rates, build investor confidence, reduce speculation and provide long-term financing for businesses,” he said.
The Economist explained that well-developed domestic markets enable companies to raise funds locally while giving investors the ability to allocate resources more efficiently.
This, he emphasised, supports entrepreneurship, innovation and job creation through access to long-term, local-currency financing.
Mr Assa also highlighted the importance of improving coordination among government ministries in their engagements with credit rating agencies.
“It’s not enough to have a good economy. We must tell a strong, consistent narrative backed by credible data to attract investment and secure better ratings,” he stressed.
Edward Ampratwum, Head of Inclusive Growth and Accountable Governance at UNDP Ghana, said the training aims to build the technical expertise of stakeholders responsible for shaping Ghana’s credit ratings story.
He added that credit ratings in Africa are often dominated by external players, and the programme seeks to equip domestic experts with the knowledge to engage effectively with rating agencies, challenge methodologies when necessary and ensure transparency.
“Ultimately, this will help reduce the cost of borrowing for Ghana and free up resources to finance national priorities,” Mr Ampratwum noted.
The workshop, organised by UNDP in collaboration with the Government of Ghana and the Government of Japan under the Credit Ratings and Development Programme, brought together technical experts from key institutions including the Ministry of Finance, Bank of Ghana, Ghana Investment Promotion Centre (GIPC), Ghana National Petroleum Commission (GNPC) and the Ghana Gold Board.
