Tema: Mr Jacob Assa, a Senior Economist and Strategic Advisor of the Regional Bureau for Africa for the United Nations Development Programme (UNDP), has advised the government to build a stronger domestic capital market for sustainable economic development. He stated that as Ghana transitions into a middle-income country, accessing concessional financing has become challenging, while international capital market engagements often incur high costs.
According to Ghana News Agency, Mr Assa emphasized the need for Ghana to develop robust domestic financial markets to facilitate borrowing at reasonable rates, enhance trust among financial players, provide long-term investment opportunities, and reduce market speculations. A well-developed domestic capital market allows companies to raise capital and investors to allocate resources efficiently within the country, fostering entrepreneurship, innovation, and employment.
During the opening of a two-day national workshop on strengthening sovereign credit ratings in Tema, Mr Assa urged the government to prioritize the creation of a robust domestic capital market. The workshop, organized by UNDP in collaboration with the governments of Ghana and Japan under the Credit Ratings and Development Programme, is also being implemented in Cote D'Ivoire and South Africa. It was attended by technical experts from institutions related to rating activities, including the Ministry of Finance, Bank of Ghana, Ghana Gold Board (GoldBod), Ghana Investment Promotion Authority (GIPC), and the Ghana National Petroleum Commission (GNPC).
Mr Assa highlighted the importance of presenting a strong narrative about Ghana's economy, providing accurate data, and improving coordination between government ministries and credit rating agencies. The workshop aims to build the capacity of Ghanaians, enabling them to better communicate Ghana's positive economic story to the investment community regarding the country's creditworthiness.
Mr Edward Ampratwum, Head of Inclusive Growth and Accountable Governance, UNDP Ghana, explained that the training aims to enhance the technical skills of stakeholders responsible for shaping Ghana's credit ratings narrative. He noted that due to the dominance of external entities in the credit ratings space, UNDP initiated the training to empower domestic experts with the necessary understanding to question methodologies, improve transparency, and package national information for better rating outcomes.
He emphasized that the ultimate goal is to ensure that African governments borrow at reasonable costs, understood by their technical experts. Mr Ampratwum encouraged participants to apply the insights gained to reduce Ghana's borrowing costs and increase available resources for national priorities.
