Ghana government to borrow $50 billion from China and pay it in 100-years
Commented on September 05, 2018 10:20
The President told the Chinese Premier that Ghana wants to raise the money for long term planning
The President, Nana Akufo-Addo has expressed the country's willingness to float a $50 billion dollar bond that would see Ghana take 100 years to pay back to investors. These 100-year bonds are initiatives already undertaken by countries such as Argentina and Mexico. Mr Akufo-Addo was in China speaking with President Xi Jinping on Saturday. The talks were part of a summit between the two countries bordering on economic cooperation. The ceremony, according to the report from Myjoyonline.com, saw the signing of eight different co-operation agreements in Beijing between the two countries.
In their discussions, the Ghanaian president reportedly told his Chinese counterpart: “The Ministry of Finance and the economists in Ghana are looking at floating a $50 billion Century Bond. This will provide us with the resources to finance our infrastructural and industrial development. We are hoping that, at some stage, China will interest itself, and take a part of it as China’s contribution to Ghana’s development” According to YEN.com.gh's findings there is actually growing appreciation for long-term debts and debt financing.
This is despite the fact that investors have been known to turn down the opportunity due to interest rates fluctuations. It seems the plan of the Ghana government is to secure a massive capital investment to enhance long term planning as Mr Akufo-Addo said: “In order to do so, we are looking seriously at how we can secure sources of long-term finance that will allow us to deal with our infrastructural development, and also realise the vision of a Ghana Beyond Aid.