ACEP Holds Media Training Session To Discuss The Chinese Lending Strategy And Its Impact On Ghana’s Debt Sustainability

The African Center for Energy Policy held a media training session to discuss China’s lending strategy and its impact on Ghana’s debt sustainability.

 

According to Mr. Mohammed Sanni Osman, a policy analyst at the African Center for Energy Policy, speaking with Energy radio 91.1Fm Business News, Ghana has benefited significantly from Chinese loans in the past, particularly in national infrastructure projects such as the Bui Dam, Ghana Gas facility, and Sinohydro interchange

 

However, research has revealed that Chinese loans come with harsher terms compared to other bilateral partners. These loans have higher interest rates, shorter repayment periods, and higher transaction fees. As a result, Ghana has to pay higher servicing fees to contract debt from China

 

China’s lending strategy has raised concerns about debt sustainability in Ghana. The country is currently restructuring its debt as part of the IMF’s recommendations, and China is a key partner in this process. However, getting China to the negotiating table has required extra effort

 

It’s worth noting that China’s role in Ghana’s debt crisis is complex. While Chinese loans have contributed to Ghana’s debt burden, they have also financed critical infrastructure projects. To address the debt crisis, Ghana will need to navigate its relationships with China.

 

 

 

 

 

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