Deputy Attorney General and Deputy Minister of Justice, Dr Justice Srem-Sai, has highlighted the significance of Ghana’s Corporate Insolvency and Restructuring Act (CIRA), describing it as a crucial tool to safeguard local businesses and restore investor confidence.
Speaking at a stakeholder sensitisation forum on the enhanced legal framework for corporate insolvency in Ghana on October 8, 2025, Dr Srem-Sai stressed that the Act provides structured mechanisms for companies facing insolvency, enabling them to restructure rather than shut down.
He explained that the law is designed to sanitise the system and offer relief to creditors.
New CIRA to protect creditors, businesses and safeguard investment – Dr Srem-Sai
“What the Insolvency and Restructuring Act suggests is that when companies are insolvent, we put in place mechanisms to restructure them and ensure the business continues. Creditors are confident that their money will not be lost forever. Employees are confident they will not lose their jobs, and families will continue to be happy,” he said.
Dr Srem-Sai further noted that the Act specifically addresses the growing issue of ‘goro boys’ exploiting the insolvency space.
“Now the Act does another thing. It eliminates goro boys from corporate insolvency. What the Act does is create professional, official creditors and practitioners. If you are not properly trained and have not demonstrated experience and commitment, you are not allowed to touch anyone’s business, even if the business has collapsed. The Act protects creditors,” he stated.
For his part, IFC’s Senior Country Manager for Ghana and Liberia, Kyle Kelhofer, underscored the critical role of the new insolvency and restructuring framework in boosting Ghana’s economic competitiveness and financial stability.
He noted that the framework is expected to enhance access to finance across key sectors of the economy.
“The CIRA framework is modern and predictable, making corporate distress manageable for banks, workers, and business owners. It gives companies a second chance through orderly restructuring. Now that we have the framework, the next step is to operationalize it and make it effective so businesses and lenders can start leveraging it as soon as possible,” he shared.
The Acting Registrar of the Office of the Registrar of Companies (ORC), Maame Samma Peprah, said Ghana is moving toward a more forward-thinking national approach to insolvency and business recovery.
She stressed that CIRA will enable vulnerable businesses to recover while promoting fair and transparent business practices.
“This is why forums like these are so crucial. They ensure the law is not just on paper but effectively implemented, well understood, and aligned with the real-world needs of our business participants,” she noted.
SP/MA
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