Ghana’s renewed effort to mobilise diaspora financing through bond instruments is coming under increased scrutiny, as unresolved concerns from the Domestic Debt Exchange Programme (DDEP) continue to weigh on investor confidence.
This cautious outlook persists even though remittance inflows remain strong and the Bank of Ghana is working on plans to channel diaspora funds into structured investment products to support long-term development financing.
Governor Johnson Asiama has previously proposed the introduction of diaspora bonds designed to convert remittance inflows into productive investments for the economy.
However, banking consultant Richmond Atuahene cautions that despite positive financial indicators, underlying structural challenges and trust issues continue to limit progress.
He pointed out that remittances have recorded notable growth, explaining that inflows increased from $4.8 billion to $7.8 billion in 2025, suggesting further potential for expansion. Still, he argues that Ghana is not fully benefiting from these inflows due to weak data tracking systems and underdeveloped financial intermediation.
Atuahene further believes that better monitoring of remittance flows could reduce the country’s reliance on external borrowing, drawing comparisons with other countries. He referenced Ethiopia as an example, where diaspora funding has been used to support large-scale infrastructure development.
Despite this potential, he stresses that confidence among investors has been shaken following the debt restructuring process. He noted that some bondholders incurred losses and repayment timelines were extended from 2027 to 2035, which could discourage future participation from diaspora investors.
While acknowledging improvements in Ghana’s overall economic conditions, he emphasised that credibility will be crucial in attracting diaspora capital. He added that investors must be assured of both stable returns and full repayment at maturity, stressing that stronger transparency and safeguards will be key to rebuilding trust.