Edwin Akai Nettey, Branch Manager of the Brong-Ahafo Catholic Cooperative Society for Development (BACCSOD) in Dormaa-Ahenkro, has sounded a note of caution to investors considering the domestic bond market, highlighting waning confidence following pensioners’ fund losses.
In an interview with the Ghana News Agency, Mr. Nettey stressed that while the bond market holds potential, its attractiveness depends heavily on prudent fund management and government efforts to restore investor trust.
He pointed out that oversubscription, often seen as a positive sign, would only translate into real benefits if underlying fiscal discipline and transparency are upheld.
Reflecting on the 2025 mid-year budget, Mr. Nettey advised investors to carefully weigh the risks and rewards of bond investments. He noted that directing capital toward business expansion might offer more tangible economic benefits, such as job creation and economic growth, whereas returns from bonds remain uncertain amid current market dynamics.
Acknowledging past challenges, Mr. Nettey commended the previous government’s introduction of the “haircut” and the Domestic Debt Exchange Programme (DDEP), recognizing these as difficult but necessary steps that contributed to stabilizing the cedi and the broader economy.
He also lauded the current administration’s commitment to building on these reforms, expressing optimism that with prudent and sustainable policies, achieving single-digit inflation is within reach.
Mr. Nettey’s remarks underscore the need for careful navigation of Ghana’s financial landscape as investors and policymakers seek to balance economic growth with fiscal stability.
