By Francis Kobena Tandoh
The British government has agreed to restructure Ghana’s 256-million-dollar debt, according to an agreement signed by the two governments on Wednesday.
The agreement will enable Ghana to reschedule, by 15 years, the bilateral debt pool to the United Kingdom (UK) as part of the external debt restructuring program embarked on by the Ghanaian government a couple of years ago.
Ghana’s Minister for Finance, Dr. Cassiel Ato Forson, and Mr. John Humphrey, His Majesty’s Trade Commissioner for Africa, signed the deal on behalf of their respective countries.
Speaking at the signing ceremony, Dr. Forson said Ghana was seeing some significant signs of economic recovery after the difficulties of 2022, with inflation declining at a pace that the government wanted it to be.
“We are likely to hit single digits before the year ends. We are seeing debt coming down. We are seeing growth rebound at levels that are encouraging, particularly in the real sector.
We are also witnessing an improvement in our unemployment, where employment is being created by the real sectors of the economy,” said the Ghanaian Finance Minister.
He said the assistance of the UK would send a signal to the rest of Ghana’s bilateral partners, who were also to sign the agreement, to come on board.
He said the agreement would unlock five major UK export projects prioritized for resumption by the government.
These include the 109 km Bolgatanga-Bawku-Pulmakom Road project, Obetesbi Lamptey interchange phase II, Kejetia market phase II, the Komfo Anokye Teaching Hospital (KATH) Maternity Unit, and the Tema-Aflao project phase I.
“The Government of Ghana will take steps to ensure that we do what we have to do from our side so that together we can begin the disbursement of these facilities so these projects can begin in earnest,” he said.
“We know that the UK will stand with us as the government of Ghana goes through the process of resetting our economy and correcting the wrongs and stopping the decline. It is obvious that we are making some progress, but we are always aware that we need to do more,” he added.
Mr. Humphrey observed that the signing was a landmark moment in the UK-Ghana partnership and part of a broader effort to normalize economic relations, following Ghana’s recent economic challenges, and to deepen trade and investment ties for the future.
According to him, the UK Export Finance was working to restart five facilities that would support critical projects prioritized by the Government of Ghana under the “Big Push” program and the broader development agenda.
“Today’s agreement is more than just a financial agreement. It’s a signal of that sort of confidence and partnership, and shared ambition between the UK and Ghana. And by restructuring this debt in partnership with the Paris Club and G20, we’re creating the fiscal space Ghana needs to deliver on its bold vision for the future, including the 24-hour economy and the “Big Push” initiatives,” he said.
He said the agreement would unlock up to an additional £170 million to complete key infrastructure projects being delivered by UK exporters, projects that will create jobs, drive growth, and strengthen the foundations of Ghana’s economy.
“The UK is excited to work with Ghana to deliver growth, attract investment, and create a future where trade is not just about transactions but about transformation,” he added.
The debt agreement reduces financing pressures on Ghana’s government, supporting the ambitions of Ghana’s International Monetary Fund (IMF) program to restore debt sustainability and freeing up finances to support their wider policy agenda. Enditem
Source: Ghana Eye Report
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