Michael Blackson believes his criticism of Ghana’s debt restructuring program may have played a role in the New Patriotic Party’s defeat in the 2024 general elections.
The American-Ghanaian comedian shared his story during an appearance on The Breakfast Club in the U.S., where he detailed how his $1 million eurobond investment, meant to generate funds for his school in Ghana, was caught up in the government’s Domestic Debt Exchange Programme (DDEP).
According to him, the eurobond initially looked like the perfect deal, promising a 10% monthly return regardless of whether he invested in dollars, pounds, or euros.
“So, I had about 4-10 employees in the school, and I guess I could run the whole school for $10k in a month. And I said, ‘How can I get 10 grand a month for a lifetime?’
“They (the government) gave out these things called Eurobonds. Where the money stays in whatever currency you put it in. So euro or pounds or dollars, it stays in that currency. And it was paying a very high interest rate, like 10%. And I’m like, OK, I’ll put in $1,000,000 so they give me $10,000 a month. And once they expire after three years, I renew it again and again, right?” he recalled.
But his expectations quickly collapsed. After only one or two payments, the flow of returns came to a halt.
“I got, like, 1-2 payments, and then it stopped. So I hit up the financial guy, and I’m like, ‘What’s going on?’ He said, ‘Well, we are just having some issues, but everything’s going to be OK. Two years later, no payment.
“And I asked them again. They said COVID and Ghana owed China money and all that, and they were doing some sort of restructuring,” he explained.
Eventually, Blackson was given two unappealing options: take a 37% loss on his money with the bond term extended to 11 years, or keep his principal but watch his interest rate plummet from 10% to 1.5% over a new 15-year period.
Frustrated by the situation, he took his grievances to social media.
“I went on Twitter, and I lit them up. I think I was probably the cause of the last government losing the election. Because the issue became worldwide,” he said.
In the end, he opted for the second choice, saving his $1 million but watching his monthly returns fall drastically from $10,000 to $1,500. To keep his school afloat, he later established a nonprofit to raise more funds.
The DDEP, introduced in December 2022, was aimed at restructuring about GH¢137 billion in domestic government bonds, cutting interest costs, and stretching repayment deadlines. While the move provided short-term relief for the government, it left many investors, including pension funds and banks, grappling with reduced income, liquidity issues, and shaken confidence in Ghana’s financial system.
