Economist Professor Peter Quartey has urged the government to back its renewed commitment to external debt servicing with increased financial support for Metropolitan, Municipal and District Assemblies (MMDAs) and other public institutions, saying fiscal discipline should also be reflected in domestic spending.
His call follows the Ministry of Finance’s announcement that Ghana had made an early payment of a US$700 million Eurobond debt service obligation, a move widely viewed as a boost to investor confidence and the country’s economic recovery.
The payment, completed on July 2, included US$525.2 million in principal and US$174.8 million in interest, bringing Ghana’s total Eurobond repayments under its debt restructuring programme to US$2.1 billion since January 2025.
While welcoming the government’s ability to meet its international debt commitments ahead of schedule, Prof. Quartey stressed that local institutions responsible for delivering essential public services should also receive adequate and timely funding.
He noted that many assemblies, ministries, departments and agencies continue to struggle with limited resources, affecting their ability to carry out critical responsibilities such as waste management, drainage maintenance and flood response.
“But I would like to add that we should extend the same to the local economy, I mean, to institutions, the assemblies and other ministries, departments and agencies,” he said.
“The lack of funding to undertake activities, including waste management and flood-related issues, should receive the same level of commitment. Otherwise, the early debt repayment is certainly a positive signal.”
His remarks come after recent floods in parts of Accra and surrounding communities caused widespread destruction, disrupted economic activity and renewed concerns over inadequate investment in local infrastructure and disaster preparedness.
Prof. Quartey said restoring confidence among international investors should go hand in hand with strengthening the financial capacity of local governments and public institutions to improve service delivery and build resilience against future challenges.
