By Dela EVANS
In the aftermath of Ghana’s 2024 Domestic Debt Exchange Programme (DDEP), which restructured over GH¢137 billion in domestic bonds, the nation faces the urgent task of restoring public trust in its financial institutions.
The DDEP, though critical for fiscal recovery, tested the resilience of savings systems, pension funds, and long-term financial security for many Ghanaians.
To complement macroeconomic stabilization, Ghana must now modernize and strengthen its Deposit Guarantee System (DGS) through the Ghana Deposit Protection Corporation (GDPC). This strategic reform, aligned with the 24-Hour Plus (24H⁺) Programme, is positioned as a national confidence-building initiative and a catalyst for inclusive, sustainable savings.
Enhancing deposit protection – A strategic roadmap
The proposed Deposit Guarantee System reforms aim to:
- Improve GDPC independence, transparency, and coverage
- Launch GDPC-insured long-term savings accounts and goal-based products
- Introduce risk-based premiums and digitize payout systems (≤ 7 days)
- Run public awareness campaigns and rural literacy programs
- Coordinate with the Bank of Ghana and financial regulators on crisis response
These reforms are sequenced across four phases: institutional strengthening, savings product expansion, public education, and crisis preparedness. The result? Greater public trust, stronger long-term savings culture, and alignment with international best practices like the IADI Core Principles.
Funding transformation through 24H⁺ innovation
Supporting the deposit protection vision is a set of innovative financial instruments tied to the Fund24 pillar of 24H⁺:
- Blended Finance SPVs: Mobilize private capital into agro-industry and logistics
- Diaspora Bonds: Leverage patriotic finance for long-term deposit security
- Strategic Value Chain Fund: Reinvest import levies into savings-linked infrastructure
- Revolving SME Funds: Combine concessional loans with recycled capital
- Impact Bonds: Use social and green finance to back inclusive financial programs
- Pension Fund Co-Investment: Allocate part of Ghana’s US$25B pension assets to GDPC-backed savings schemes
The national payoff
Strengthening Ghana’s deposit protection ecosystem—backed by modern funding tools—will accelerate financial inclusion, stabilize savings behaviour, and reinforce public faith in the banking system. It also creates the institutional scaffolding to support flagship programs like the Volta Economic Corridor and other 24H⁺ initiatives. This is more than financial reform—it is a reset of national trust.
>>>the writer works with Ghana Change Academy and can be reached via [email protected]
