Businesses still reeling from DDEP, not yet turned the corner – Nana Osei Bonsu
Ghana’s business community is still struggling to recover from the impact of the Domestic Debt Exchange Programme (DDEP), according to Nana Osei Bonsu, the Chief Executive Officer of the Private Enterprise Foundation.
In an interview, he made it clear that the private sector, in particular, is feeling the brunt of the debt restructuring initiative, and the nation has not yet “turned the corner” in terms of recovery.
“We haven’t recovered,” Mr. Bonsu said plainly.
“We’re still reeling from the high cost of doing business and high interest rates. To the authorities, it might seem like recovery because we’re in the process, but for businesses, we are not there yet. We are still stumbling.”
The CEO explained that businesses continue to face challenges, particularly in competing internationally.
He highlighted that the interest rates and costs of doing business in Ghana remain high compared to global peers.
“We’re competing in an international arena where others have interest costs at less than 8%, while ours is still very high. So how can we say we’ve recovered?” he questioned.
Mr Bonsu also raised concerns about Ghana’s participation in the African Continental Free Trade Area (AfCFTA), stating that although the country has opened its doors to international players, local businesses remain disadvantaged.
“Our taste buds always prefer non-local products. The international players come in and we dangle tax exemptions at them. What are we benefiting from this? What are we doing to boost local businesses?” he lamented.
The domestic debt exchange, which deprived private businesses of much-needed income, is still casting a shadow over Ghana’s economic landscape.
According to Bonsu, the situation has resulted in significant job losses and reduced productivity, with many businesses still unable to bounce back.
“We didn’t approve of the debt exchange wholeheartedly because we had no alternative. Our hard-earned interest and income were taken away,” he said, adding that the recovery process is ongoing but far from complete.