In a compelling call for a recalibration of Ghana’s domestic debt strategy, Joe Jackson, Chief Executive Officer of Dalex Finance, has urged the government to pivot from its heavy reliance on short-term treasury bills and re-enter the local bond market to secure more sustainable financing.
Speaking at the 2025 edition of The Money Summit, co-hosted by Business and Financial Times and Ecobank under the theme “Optimising Investment and Pensions Management: Strategies for Sustainable Retirement Income and Economic Growth,” Jackson underscored the urgency of transitioning to longer-term financial instruments to restore debt sustainability and rebuild market confidence.
“T-bills were never designed to be the backbone of government financing they’re short-term instruments meant to plug temporary liquidity gaps, not fund long-term development, we’ve misused them. It’s time to shift.” Jackson asserted.
Jackson contextualized the overreliance on treasury bills within the country’s recent economic turbulence, including the 2022–2023 debt crisis and the Domestic Debt Exchange Programme (DDEP), which effectively shut Ghana out of both foreign and domestic bond markets.
With signs of macroeconomic stabilization and a government demonstrating greater fiscal restraint, Jackson sees the moment as ripe to reintroduce medium- to long-term bonds into the financial ecosystem.
The financial expert praised the government’s efforts to hold down interest rates and contain public spending, citing these developments as critical foundations for rebuilding investor trust.
“There’s a new fiscal regime in place more disciplined, more focused. If we continue along this path, there’s no reason not to begin issuing local bonds again,” Jackson said. However, he tempered his optimism with caution, adding, “We’re not out of the woods yet.”
Jackson emphasized that while re-engaging with the bond market is strategically sound, it must be done with prudent oversight. Investors, he warned, should no longer consider government instruments risk-free.
“We must invest with our eyes wide open tracking inflation, watching government expenditure, and ensuring that the cedi remains stable, trust must be earned, not assumed.” he advised.
Jackson’s remarks arrive at a pivotal time as Ghana seeks to reposition itself as a credible issuer in the domestic debt market. His message resonated with summit participants who are increasingly concerned about achieving balance between investment returns, public debt sustainability, and long-term economic growth.
The return to local bonds, if executed with transparency and discipline, could mark a significant turning point in Ghana’s post-crisis financial recovery unlocking capital for infrastructure, pensions, and productivity-enhancing investments.
