Ghana’s renewed push to tap diaspora funding through bond instruments is facing fresh scrutiny, with lingering concerns over the Domestic Debt Exchange Programme (DDEP) casting a shadow over investor confidence.
The caution comes despite strong momentum in remittance inflows and the Bank of Ghana’s plans to channel diaspora funds into structured investment vehicles to support long-term development financing.
Governor of the Bank of Ghana, Johnson Asiama, has already outlined proposals including diaspora bonds aimed at converting remittances into productive investment flows.
But banking consultant Dr. Richmond Atuahene warns that while the numbers are encouraging, structural weaknesses and trust deficits remain a major hurdle.
He notes that remittances have surged significantly, stressing that “remittances in 2025 rose from US$4.8 billion to US$7.8 billion, it means there’s still room for improvement.” However, he argues that Ghana is still not fully capturing the potential of these inflows due to weak tracking systems and limited financial structuring.
Dr. Atuahene insists that improved monitoring could reduce dependence on external capital markets, pointing to international examples. “If we can track and trace all remittances, it will be easy for us not to even go to capital markets,” he said, citing Ethiopia’s use of diaspora funds to finance major infrastructure projects.
However, he cautions that investor trust remains fragile following the debt restructuring exercise. “Some of them have lost money. We’re talking about repayment instead of 2027 going to 2035,” he noted, warning that such experiences could delay renewed diaspora participation in bond markets.
While acknowledging Ghana’s improving macroeconomic outlook, he stressed that credibility will be decisive for success. “If somebody buys that bond, he’s assured that you get maybe a return and at the same time you get the principal at maturity,” he said, adding that stronger safeguards and transparency will be critical to rebuilding confidence.
