Former Ghanaian President John Dramani Mahama has voiced his concerns about the lack of consultation in the Domestic Debt Exchange Programme (DDEP).
Speaking at Chatham House in London on Africa’s Strategic Priorities and Global Role, Mahama highlighted the need for dialogue and transparency in restructuring the nation’s debt, especially concerning domestic bondholders.
“I’m not opposed to debt restructuring because it is a condition precedent to getting into an IMF programme and we’re going to need to do a debt restructuring to be able to go into a programme,” Mahama stated, acknowledging the necessity of the restructuring but emphasizing the importance of involving all stakeholders in the decision-making process.
His audience, mostly investors have expressed their hesitancy to invest in Ghana because of the ongoing economic difficulties and question what his solution will be to the domestic debt programme.
Mahama criticized the government’s unilateral approach, particularly its treatment of domestic bondholders, contrasting it sharply with negotiations occurring with external bondholders.
He expressed dismay at the lack of consultation, citing an announcement made by the finance minister outlining the restructuring plan without prior dialogue: “Government feels it can just ride roughshod over them.”
The former president underscored the need for a national dialogue on the economy, expressing disappointment that his earlier suggestion had been ignored.
He pointed out the government’s repeated borrowing without substantial investment in productive sectors is what has led to the current crisis.
“After you’ve recklessly mismanaged the economy, you don’t want to make the same sacrifices. You’re asking the people to make all the sacrifices,” he said, highlighting the imbalance in the burden-sharing.
Mahama also criticized the government’s choice of negotiators, particularly the finance minister, who he argued was not the right person to handle the negotiations.
“You don’t let the driver who run you into a ditch and after you’ve managed to pull the car out of the ditch, sit behind the wheel again,” he remarked, echoing the sentiments of many within the opposition party.
His critique extended to the 2023 budget, where he expressed concern over a GH¢82 billion increase in government expenditure compared to the previous year, questioning the seriousness of the government in making the necessary sacrifices.
