Stalled projects will resume soon - President Akufo-Addo assures

President Nana Addo Dankwa Akufo-Addo has stated that many of the country's stalled projects will soon resume, thanks to the successful negotiations regarding the restructuring of Ghana's debt. 

Speaking at the presentation of credentials to nine newly appointed diplomats at the Jubilee House last Monday, the President detailed the positive outcomes of the negotiations and their implications for Ghana's development.  

He said the completion of three major debt restructuring operations: the domestic debt restructuring, the external bilateral debt restructuring and the commercial bondholders debt restructuring, had provided much-needed financial relief and set the stage for a renewed focus on critical infrastructure and development projects.  

"These agreements have provided the much-needed breathing space and put our domestic debt-to-Gross Domestic Product (GDP) ratio on a clear downward trend," President Akufo-Addo explained.

"The successful negotiations mean that bondholders will provide $4.4 billion in cash flow relief during the IMF Programme, in addition to the cancellation of $4.7 billion of the debt stock," he added.  

The President said the significance of the domestic debt restructuring, which achieved a high participation rate of almost 95 per cent, was reduced coupon rates from 21 per cent to nine per cent, extended maturities and easy near-term local debt service burden that previously consumed more than 40 per cent of the country's tax revenues.

“This restructuring has set the domestic debt-to-GDP ratio on a path to reach 55 per cent by the end of 2028,” he said.

President Akufo-Addo added that the agreement with bilateral creditors, coordinated through the Ghana Official Creditor Committee (OCC) co-chaired by France and China, resulted in the restructuring of $5.1 billion of Ghana's debts.

This agreement is expected to provide a cash flow relief of approximately $2.8 billion or GH¢39 billion, in debt service, postponed between 2023 and 2026 to be repaid later at a cheaper interest rate.  

The successful negotiations had also paved the way for the IMF's Executive Board to convene and approve Ghana's Second Review of the Fund Programme, resulting in a further disbursement of $360 million in support of the programme, the President added.

The restructuring of $13.1 billion debts with Eurobond holders also resulted in significant savings for the government, including the cancellation of $4.7 billion, or GH¢65 billion, from the debt stock.

Additionally, Ghana will save $4.4 billion or GH¢60 billion, in debt service, providing further financial relief during the IMF Programme, President Akufo-Addo explained.  

President Akufo-Addo commended the Ministry of Finance, led by Dr Mohammed Amin Adam, for its efforts in achieving the historic agreements and emphasised the importance of the milestones in creating the financial space needed to resume and complete stalled projects across the country.  

The President reassured Ghanaians and the international community that the economy was on a strong recovery path and highlighted the significant strides and resilience shown by Ghanaians in overcoming recent global adversities.  

"In the face of these adversities, Ghana has shown remarkable resilience," President Akufo-Addo stated," adding that “we have embarked on a comprehensive strategy to revive our economy, and I am pleased to note that our efforts are bearing fruits."  

The President cited GDP growth rate of 4.7 per cent in the first quarter of 2024, surpassing the IMF's forecast of 3.1 per cent. “This growth, driven by the industrial sector's 6.8 per cent expansion and a 4.1 per cent rise in the agricultural sector, underscores the effectiveness of the government's economic policies, President Akufo-Addo stated.

He said the Ghana CARES 'Obaatan pa' programme, launched in 2021, continued to play a pivotal role in the nation's economic strategy.

President Akufo-Addo called on the citizenry to “help and contribute to the success of this programme by facilitating, amongst other things, as much foreign investment into the country as you can.”

The envoys include Vice Admiral Seth Amoama, who is the High Commissioner to Nigeria; Francisca Ashietey-Oduntun, who now moves from Turkey to South Africa as High Commissioner, while Major General Nicholas Peter Andoh now becomes the Ambassador to Türkiye, with Ernest Yaw Amporful being named the High Commissioner to Rwanda.

The rest are Ambassador to Belgium and the EU, Henry Tachie-Menson; Ambassador to Morocco, Charity Gbedawo; Ambassador to Norway, Ms Abigail Naa Adzoko Kwashi; Ambassador-designate to Ethiopia and the African Union, Dr Robert Afriyie; and Ambassador-at-Large, Nana Bediatuo Asante, who is expected to combine this with his work as Secretary to the President.

The newly appointed diplomats are expected to play a crucial role in promoting Ghana's economic agenda on the global stage. The President charged them to let their primary responsibility be the promotion of the image of Ghana as a stable, peaceful and forward-looking country.

"This entails engaging with your host nations to foster strong bilateral relationships, attract investments, and advocate for the interests of Ghana," he added.