The CEO and Co-Founder of C-Energy Global Holdings and Investment Analyst, Mike Cobblah has advised government to desist from embarking on a universal roadshow as a means of raising funds especially following Fitch’s downgrade of the economy.

According to him, such a move will prove futile and might hasten the country’s economic collapse.

Speaking on JoyNews’ PM Express Business Edition, he stated that, the precarious economic situation the country finds itself in calls for more bilateral deals.

He said, “It is easier to convince investors on one-on-one basis than to do a universal roadshow. So I would advise that government at this stage of our economy would have to do more bilateral deals, striking more bilateral deals with capital funds, funds outside rather than doing [roadshows].”

He was hopeful that the country would be more successful with bilateral deals against a universal roadshow, as the former would allow the government focus their energies on friendly investors who might be more willing to invest despite the economic downgrade.

“It is time to engage your friendly investors. The economy is not bad, we’re not in that bad bad…it’s a perception don’t forget. So there are people who general sympathise with your cause,” he said.

Mike Cobblah also noted that the government’s decision to reduce their projected expenditure by 20% was a move in the direct direction.

He said “it means we’re cutting our coat according to our size”.

The downgrade of Ghana’s IDRs and Negative Outlook reflect the sovereign’s loss of access to international capital markets in the second-half of 2021, following a pandemic-related [COVID-19] surge in government debt.

Fitch in a report said “this comes in the context of uncertainty about the government’s ability to stabilise debt and against a backdrop of tightening global financing conditions. In our view, Ghana’s ability to deliver on planned fiscal consolidation efforts could be hindered by the heavier reliance on domestic debt issuance with higher interest costs, in the context of an already exceptionally high interest expenditure to revenue ratio.”