After Ghana’s $3 billion contract with the International Monetary Fund was successfully concluded, Joe Jackson, the Director of Business Operations at Dalex Finance, claims that it is still too early for Ghana to borrow money for infrastructure projects on the international capital market.
Parts of President Akufo-Addo’s remarks at the Qatar-Africa Economic Forum in Doha, where he said Ghana is well-positioned to return to the international market to get funding for existing projects, were attacked by the financial expert.
In an interview, Mr. Jackson claimed that the President’s claims about Ghana returning to the global market are puzzling, particularly since the $3 billion agreement with the International Monetary Fund (IMF) has just about been concluded.
“I am not clear in my mind whether the president is talking about borrowing in the next year or so, or whether he is referring to borrowing from the international Eurobond or commercial paper market in the next three or four years because we haven’t even finished negotiating with the current creditors.
“We haven’t dotted the I’s and crossed the T’s. We have a commitment as to the way forward, but the deal hasn’t been finalized yet, so going back to the market baffles me a bit.”
Joe Jackson
He suggested that the country should consider returning to the international market at a point “where the country’s revenue has demonstrably gone up, where we have reduced the size of the government, and where we have made an attempt at structural changes that will make the economy sustainable. We are not at that point yet.”
Akufo-Addo stated during a speech at the Qatar-Africa Economic Forum in Doha that even though his administration is not in a hurry to re-enter the global market, it makes sense to benefit from it now and save some money.
“We have positioned ourselves to be able to go back into the International market, which had been a source of funding for us during the first three or four years of our government.
“There is no rush but obviously why not take advantage of global savings, it makes a lot of sense to me. We will try as much as possible to maintain the discipline which is required and the most important requisite for a successful programme.”
Nana Addo Dankwa Akufo-Addo
Akufo-Addo Finds No Problem With China’s Involvement In The Ghanaian Economy
According to President Nana Addo Dankwa Akufo-Addo, the Chinese presence in the Ghanaian economy, is not an issue. In challenging circumstances, China has proven to be a dependable partner, according to President Akufo-Addo.
He made this statement in response to an IMF study on Ghana for the year 2023, which warned that if Ghana is unable to pay its debt of $1.9 billion, China may seize control of the nation’s natural resources and energy income.
Speaking in Doha at the Qatar Economic Forum, Nana Addo Dankwa Akufo-Addo stated that Ghana has benefited from China’s investment.
“Well, I don’t have any criticisms about Chinese involvement in the Ghanaian economy. They have been very helpful, it’s a matter of controversy in the West. For us, they have been friends and in terms of difficulty, they have proven to be a strong partner.”
Since the year 2000, China has lent a lot of money to Ghana. For significant projects like roads, bridges, and power plants, the nation has borrowed around $5 billion from China, over the course of two decades.
These loans have assisted Ghana in developing its economy and infrastructure. However, they also left the nation heavily indebted and Ghana is trying to pay off its debts.
However, there have been complaints that the terms of the Chinese loans are unfair to Ghana. Ghana’s ability to pay back its loans has become much more challenging, due to the present economic crisis.
A few days ago, the International Monetary Fund (IMF) authorized a $3 billion loan for Ghana to aid with economic stabilization.
The IMF financing is simply a temporary fix, though. Ghana must find a long-term solution to lower its debt load. This calls for a combination of debt forgiveness from its creditors and economic changes.
Ghana is hardly the only nation dealing with debt problems, many developing nations are dealing with comparable issues.
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