Ghana secures 15-year debt rescheduling with UK - Paves way for major infrastructural projects
Ghana and the UK Government have signed a bilateral agreement for restructuring sovereign debts.
The agreement, which is expected to create fiscal space, would enable Ghana to reschedule by 15 years the bilateral debt owed to the UK as part of the external debt restructuring programme in 2023.
It would also unlock GH¢256 million to resume work on five major projects - Bolgatanga Road, Obetsebi Lamptey Interchange (phase II), Kejetia Market (phase II), Komfo Anokye Teaching Hospital (KATH) Maternity Unit, and Tema Aflao Road Project (phase I).
The Minister of Finance, Dr Cassiel Ato Forson, appended his signature for Ghana, while His Majesty's Trade Commissioner for Africa, John Humphrey, signed for the UK.
It was witnessed by the Chief Director of the Ministry of Finance, Dr Patrick Nomo; the UK High Commissioner to Ghana, Christian Rogg, and other officials.
Commencement
Dr Forson said that the government would play its part by ensuring the swift disbursement of funds for the commencement of work.
"We are confident that the United Kingdom will stand by us as we reset our economy, correct past missteps, and halt further decline.
"While the signs of progress are encouraging, we recognise that more work lies ahead. These early gains mark only the beginning," he said.
The minister said the government remained committed to putting the economy in order by restoring growth and delivering essential social services to citizens.
"Although we can say recovery is underway, we are not out of the woods yet. That is why we proceed with caution, ensuring that the nation never returns to the challenges of the past.
“To this end, the government is putting in place legislation that will guarantee irreversibility and safeguard the nation’s progress," he added.
Shared commitment
Dr Nomo said the agreement marked not only a milestone in the ongoing relationship between Ghana and the UK, but also a testament to a shared commitment to economic stability and sustainable development.
"Our collective presence here signifies the importance we attach to the collaboration and mutual support, especially in these challenging times.
"This time around, Ghana will be signing the bilateral agreement with the Government of the UK to enable Ghana to reschedule by 15 years, the bilateral debt owed to the UK as part of the external debt restructuring programme that we embarked on a couple of years ago," he added.
Significance
For his part, Mr Humphrey said the agreement signalled the confidence, partnership, and shared ambition between the two nations.
"By restructuring this debt in collaboration with the Paris Club and the G20, we are creating the fiscal space Ghana needs to pursue its bold vision for the future, including the 24-Hour Economy and the Big Push initiatives.
"These are not mere slogans; they are transformative agendas designed to create jobs, foster innovation, and generate prosperity for millions of people.
The UK is proud to stand with Ghana on this journey.
"Our recently published Modern Industrial Strategy is a clear demonstration of this forward-looking approach," he said.