The Dean of the University of Ghana Business School (UGBS), Prof. Justice N. Bawole, has bemoaned the effects of the recent domestic debt exchange programme (DDEP) on Ghanaian businesses and households.
Speaking on the sidelines of UGBS’ 44th Management Day celebration on 5th June, Prof. Bawole observed that people’s expectations of returns from their investments in different government securities had been affected by the DDEP, adversely affecting their livelihoods.
He believes that conversations around the DDEP have mainly centred on the government and how its agenda is presently constrained by the DDEP, but little has been said about the effects on businesses and households and how they can build resilience following the programme.
“Unfortunately, there have been conversations on how government itself is constrained, but we often do not talk about the impact of this on households and on private businesses, and so we decided to take this aspect of the conversation, which has not received significant discussion, and look at how the DEEP has affected businesses, individuals, and households,” he stated.
“As we have understood, the impact is significant, but there are also ways in which families, households, individuals, and businesses can build their resilience to be able to come out of the challenges that have been occasioned by the DDEP,” he added.
Prof. Bawole emphasised the importance of understanding the consequences of their behaviour, as UGBS students will soon become managers of the economy and must make informed decisions.
“Our students are going to be the next level of managers; beginning next year, you will find them out there as managers because we are going to send them out there. They need to understand that behaviour has consequences and that government behaviour has consequences, so if you find yourself in business in government, you should know what behaviour you will take. Number two, if you are in business and going to be managing businesses, you need to understand that behaviour has consequences.
“Today’s conversation actually preempts the behaviour that students will have to begin to think about when they get into uncertain circumstances as business managers. It is also to prepare them to know that the world out there is not as smooth as we see it, and so they must know that they must build resilience here themselves and gather enough tools that will let them be able to function when they become business managers,” he explained.
He expressed confidence that the country will soon bounce back from its dire economic straits, considering the measures the government has put in place so far.
Philip Amoateng, Director of Telecel Cash, advised Ghanaians to use the surge in momo transactions to send and receive money from loved ones abroad, avoiding traditional methods that could be costly and risky due to potential attacks by robbers.
Mr. Amoateng revealed that in Kenya, mobile money has reduced misunderstandings between hardworking wives and husbands, allowing wives to store their money in secure momo wallets to prevent thefts.
Chief Finance Officer of BroadSpectrum Limited, Sam Osew Kwatia, for his part, gave a brief overview of the DDEP and highlighted the commitment by the government to stabilise the economy.
“At a particular point in time, the country had very high debt levels. If you recall somewhere in 2022, there was a report where they put the debt-to-GDP ratio around 81.5%, and the Ministry of Finance came to correct it to 78.4%, which was still very high, meaning that we were having economic strain on the country, and of course we also know the impact of COVID-19 and all the pandemic issues that we all had. In fact, it affected all of us. Over 500 kilometres of our fibre were destroyed during the COVID era through galamsey and sand-winning activities, so that impact on the economy was very great. Of course, rising interest costs were also an issue, and then the IMF programme was also one of the things that precipitated the need for the DDEP to happen, and then the government also wanted to restore confidence in the market just to ensure that the country moves on,” he elaborated.
Mr. Kwatia outlined practical steps households should adopt to build resilience post-DDEP.
He identified mental and emotional well-being as central to building resilience among households, adding that people should be open about their challenges in handling stressful situations.
He also advocated bulk purchasing, buying from cheaper sources, and prioritising household expenditures as a means of managing costs and staying financially afloat amidst the unfavourable effects of the DDEP.
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