Ghana’s President Nana Addo Dankwa Akufo-Addo has expressed his satisfaction with China’s participation in his country’s economic development. He said China has been a helpful and reliable partner for Ghana, especially in times of difficulty.
He made these remarks at the Qatar Economic Forum in Doha, amid concerns raised by an IMF report on Ghana for 2023. The report warned that China may gain access to Ghana’s natural resources and electricity revenues if Ghana fails to repay some $1.9 billion debt.
President Akufo-Addo said he does not share these concerns and he sees no problem with China’s involvement in Ghana’s economy. He said China has funded many infrastructure projects in Ghana, such as roads, bridges, and power plants, that have improved Ghana’s living standards and economic growth.
Ghana has been one of the largest recipients of Chinese loans in Africa since 2000. It has borrowed nearly $5 billion from China for various projects over two decades.
However, these loans have also increased Ghana’s debt burden. Ghana’s external debt now exceeds $30 billion, and it is facing difficulties in servicing its debts.
Some critics have also accused China of imposing unfavourable conditions on its loans to Ghana.
The current economic crisis has worsened Ghana’s debt situation.
The IMF recently approved a $3 billion loan for Ghana to help it stabilize its economy.
However, this loan is only a temporary solution. Ghana needs to find a way to reduce its debt burden in the long term. This will require a mix of economic reforms and debt relief from its creditors.
Ghana is not alone in this challenge. Many other developing countries are facing similar debt problems.