The Real Cost of Ghana’s DDEP Program as of May 2025

In response to a deepening debt crisis, Ghana launched the Domestic Debt Exchange Programme (DDEP), asking local bondholders to swap their existing investments for longer-term, lower-yielding alternatives. As of 2025, the programme has cost the country an estimated GH¢61.7 billion. While it was designed to stabilize the economy and secure IMF support, the move significantly impacted pensioners, investors, businesses, and the financial sector. For the average Ghanaian, the DDEP represents both a national reset and a personal financial reckoning. This article breaks down what it all means—and what lies ahead.

So let’s get straight into it: the Domestic Debt Exchange Plan (DDEP) is a policy implemented by the Ghanaian government in 2019 to refinance the country’s domestic debt portfolio by exchanging short-term, high-interest-bearing debts for longer-term, lower-interest-bearing obligations. This program had the goal of trying to lower the government’s debt service expenses, lengthen the maturity of the loan portfolio, and free up fiscal space for other development projects. 

Effects of the DDEP program on the Ghanaian real estate sector 

The DDEP program has had some effects on the real estate sector in Ghana. Some of the notable effects include:

1. Reduced interest rates

The DDEP program has led to a reduction in interest rates on government bonds and securities, which has, in turn, affected the interest rates on bank loans. Lower interest rates have made it easier for developers and homeowners to access financing, which has led to increased real estate activity.

1. Increased liquidity in the market

 By reducing the government’s debt service costs, the DDEP program has freed up more funds for investment in other sectors of the economy, including real estate. This has led to increased liquidity in the market, making it easier for developers to access capital for their projects.

1. Increased government spending on infrastructure

With the reduced debt service costs, the government has been able to allocate more funds towards infrastructure development, which has a positive impact on the real estate sector. Improved infrastructure such as roads, water and electricity supply, and public transportation systems are important for the development of real estate projects.

1. Stable exchange rate

The DDEP program has contributed to a relatively stable exchange rate in Ghana, which has had a positive effect on the real estate sector. Stable exchange rates make it easier for developers to import construction materials, and also make the country a more attractive destination for foreign investors.

Benefits of DDEP on Real Estate in Ghana:

1. Lower interest rates

As mentioned earlier, the DDEP program has led to a reduction in interest rates on government bonds and securities, which has resulted in lower interest rates on bank loans. This makes it easier for investors to access financing for real estate projects at a lower cost.

1. Increased government spending on infrastructure

With reduced debt service costs, the government has been able to allocate more funds towards infrastructure development. This has led to improved infrastructure such as roads, water, and electricity supply, making it easier for investors to develop and sell real estate properties.

1. Increased liquidity in the market

By reducing the government’s debt service costs, the DDEP program has freed up more funds for investment in other sectors of the economy, including real estate. This has led to increased liquidity in the market, making it easier for investors to access capital for their projects.

1. Stable exchange rate

The DDEP program has contributed to a relatively stable exchange rate in Ghana, making the country a more attractive destination for foreign investors looking to invest in real estate.

Disadvantages of DDEP on Real Estate in Ghana:

1. Uncertainty: As with any policy change, the DDEP program has created uncertainty among investors regarding the future of the market. Investors may be hesitant to invest in real estate once they are certain about the impact of the policy on the market.
2. Economic stability: The success of the DDEP program on the real estate market in Ghana depends on the stability of the country’s economy. Any economic instability could negatively impact the real estate market.
3. Regulatory environment: The regulatory environment in Ghana may not be as robust as some investors would like. This could lead to difficulties in obtaining permits and approvals necessary for real estate projects.

What investors should consider for real estate investments in Ghana

1. Location: Investors should consider the location of the property and its potential for growth. Properties in high-growth areas are more likely to appreciate in value.
2. Market trends: Investors should stay up-to-date on market trends and changes in regulations that could impact the real estate market.
3. Financing options: Investors should explore various financing options available to them and choose the option that is most cost-effective and suitable for their needs.
4. Professional advice: It is important to seek professional advice from lawyers, accountants, and real estate professionals who are knowledgeable about the market and can provide guidance on investment decisions.

In conclusion, the DDEP program has had some positive effects on the real estate sector in Ghana, including reduced interest rates, increased liquidity in the market, increased government spending on infrastructure, and a stable exchange rate. However, it is important to note that the full impact of the program on the real estate sector is still unfolding and will depend on various factors such as government policies, investor confidence, and economic stability.