A finance expert and fellow of the finance pillar at the Centre for Social Justice (CSJ), Haruna Alhassan, has advised the future government of Ghana to initiate another round of debt restructuring starting in 2025.

This recommendation comes amid concerns that without strategic investment of borrowed funds, the nation will continue to face bankruptcy.

On July 1, 2022, President Nana Akufo-Addo instructed then-Finance Minister Ken Ofori-Atta to engage the International Monetary Fund (IMF) for a debt-restructuring programme, effectively declaring the country bankrupt.

This move resulted in significant financial challenges for bondholders.

"We may come out [of the bankruptcy] temporarily because of debt restructuring, but overall, we will still have a debt burden that we will struggle to pay. Going into 2025 to 2028, if you look at the payment profile of the restructured bonds, we cannot run away from having a second round of debt restructuring and we must start that engagement right from 2025," Alhassan asserted during his keynote address at the 13th edition of the Leadership Dialogue Series (LDS) organized by CSJ.

Themed "Ghana’s Economy from 2025 – 2028: The Hard Choices," the LDS 13 discussions offered numerous proposals for the next government to help restore Ghana's economic stability.

Alhassan emphasized that the next administration must avoid the criticized practice of "borrowing for consumption" and focus instead on productive investments to avoid perpetual bankruptcy.

Alhassan also warned of the tough road ahead for any incoming government tasked with addressing the current economic challenges, marked by unprecedented hardship.

"The road ahead will be tough. Tough, rough and bumpy," he cautioned, advocating for leadership by an experienced individual from 2025 onward.

The domestic debt exchange programme has faced widespread criticism for its chaotic and insensitive implementation, particularly its impact on pension funds.

Studies indicate that the programme could reduce the wealth and income of individual households, both directly and indirectly, through retail holdings and shares in mutual and pension funds. To mitigate these issues, Alhassan stressed the importance of starting negotiations early in the next round of debt restructuring.

The Leadership Dialogue Series, CSJ's flagship civic education platform, aims to foster mass political participation and patriotic values through engaging discussions with experts and national leaders. CSJ, a think tank with a left-of-centre leaning, advocates for greater social inclusion in the distribution of wealth, privileges, and opportunities in society.