Across the country, countless Ghanaians quietly endure the profound financial difficulties caused by the Domestic Debt Exchange Programme (DDEP). This includes individuals who invested in government bonds, cocoa bills, and mutual funds, many of whom now face severe limitations on accessing their own savings.
These are not covered by the recently announced GH¢1.5 billion government bailout.
For those invested in mutual funds, the situation is especially grim, as withdrawals are capped at just one thousand cedis a week. This restriction persists despite the conclusion of the DDEP, leaving many in anguish as they struggle to meet financial needs with minimal access to their investments.
The frustrations of these investors are immense. Many have spent years saving, only to find themselves locked out of their own funds when they need them most. The emotional toll of these restrictions is palpable, with deep regrets over the sacrifices made to secure a future that now feels uncertain.
When the government launched the DDEP, it was framed as a necessary move to stabilize the national economy. The programme involved restructuring domestic debt, asking bondholders to exchange their bonds for new ones with lower interest rates and extended maturities. While intended to ease Ghana’s fiscal pressures, this decision has resulted in widespread hardship for many, especially pensioners and middle-income investors whose savings have been significantly devalued.
For people like Mr. Ekyi Quarm, a retiree, the impact has been devastating. “I invested in government bonds because I believed they were safe. Now, I don’t know if I’ll have enough to live on,” he shared, reflecting the deep sense of betrayal felt by many who had trusted the government’s financial instruments.
Beyond the immediate financial losses, the programme has severely eroded wealth among those who relied on these investments for their retirement. Many, like Mr. Quarm, find themselves struggling to cover basic living expenses such as food, school fees, and household maintenance. The emotional burden is compounded by a lack of viable alternatives for financial recourse.
Adding to the complexity is the pervasive fear among those affected. Many worry that speaking out could result in negative consequences or social ridicule, so they suffer in silence. As one financial analyst noted, “People are scared. They fear that if they complain, they might be targeted in some way. So, they suffer in silence.”
This fear, combined with a general sense of hopelessness, has created an environment of quiet despair. Many believe that even if they voiced their concerns, nothing would change. The overwhelming sense of resignation is palpable, as individuals are forced to endure the consequences of the DDEP without any clear path forward.
One affected individual, reaching out to a journalist with The High Street Journal, expressed his frustration: “I have friends, including myself, who have requested to redeem part of our investments but were told there are liquidity challenges. The money has been used for the DDEP.” This sentiment is shared by many, who now feel trapped by their inability to access their funds.
The human cost of the DDEP extends far beyond financial losses. Mental health issues, including anxiety and stress, have surged as Ghanaians face growing uncertainty about their financial futures. Rising inflation and the cost of living only exacerbate these challenges, leaving many feeling overwhelmed and helpless.
In an interview with TV3, Mr. Quarm spoke candidly about the daily struggles his family now faces: “It never occurred to me how much I spent on food each day until this investment was locked at COCOBOD,” he said. He now finds himself constantly trying to make ends meet, praying for divine intervention in a situation that seems beyond his control.
Healthcare professionals are also witnessing the impact of this financial strain. “We’re seeing more and more people coming in with stress-related issues,” one doctor observed. “They feel like they have no control over their financial situation, and it’s affecting their overall well-being.”
As the Ghanaian cedi continues to lose value, the purchasing power of ordinary citizens diminishes further. A mere GH¢100, which once covered various expenses, now barely stretches to meet basic needs. This erosion of wealth is forcing many to reconsider their futures, making it harder to maintain a standard of living or make long-term investments.
Although the public outcry remains muted, there is a growing demand for greater transparency from the government and stronger support mechanisms for those affected by the DDEP. Financial experts are calling for more comprehensive financial education and advisory services to help individuals navigate the complexities of restructured bonds.
The DDEP has left a lasting mark on Ghana, creating a climate of fear, frustration, and financial uncertainty. While many continue to suffer in silence, the need for solutions is more urgent than ever. Without timely interventions, the impact of the DDEP may be felt for generations to come.
