Ghana’s government will only secure loans that offer tangible economic value and preserve long-term debt stability, Finance Minister Dr Cassiel Ato Forson has declared.
Addressing delegates at the Fifth Session of the Ghana–China Joint Commission on Economic, Trade and Technical Cooperation, he emphasized that the nation is moving away from taking on loans merely due to credit availability. Instead, every future facility must directly back initiatives offering clear financial dividends.
“Ghana will now proceed with discipline. We will not borrow simply because financing is available,” he said.
Dr Forson explained that prospective projects backed by loan agreements will face rigorous economic scrutiny, transparent procurement procedures, and must clearly demonstrate an ability to spur fiscal expansion, generate state revenue, or trim public spending. He highlighted key infrastructure areas such as transport networks, power installations, and industrial hubs as sectors that must yield measurable economic returns.
“Any road, railway, power plant, industrial enclave or other infrastructure financed through this cooperation must improve productivity, create jobs, increase exports and strengthen Ghana’s ability to repay its obligations,” he stated.
Reflecting on lessons from the 2022 debt crisis, the Finance Minister affirmed that the government plans to broaden its funding streams whilst enforcing tight oversight to ensure past fiscal distress is not repeated.
“We will diversify our financing sources, protect debt sustainability and avoid a return to the conditions that led to the 2022 debt crisis,” he added.
By: Rainbowradioonline.com/Ghana