Unlike many African countries, Ghana, the continent’s leading gold producer, cannot borrow again from China.
This is explained by record inflation of 54% which pushed several rating agencies to downgrade its credit rating. Result: Ghana can no longer borrow on international markets.
However, Ghana is the second largest economy in ECOWAS after Nigeria and before Ivory Coast, with a GDP of $76.63 billion in 2023 (around $2,330 per capita). Its economy is based on the exploitation of raw materials such as gold, oil, gas and cocoa, as well as on services linked to these sectors.
In 2022, Ghana took over from South Africa its place as the leading gold producer in Africa and remains the second largest cocoa producer in the world, after Ivory Coast.
But that same year, the country went through a serious financial crisis. As of September, its total debt reached $55 billion.
This debt required more than 70% of government revenues to repay, an impossible burden to assume. In December 2022, Ghana was declared in default. Which means he can’t pay his debts.
To help the country recover, the IMF granted it a loan of $3 billion in May 2023. However, Ghana’s economic growth has slowed sharply this year. Experts estimate that the country will return to normal growth in 2027.
Ghana wants to be able to borrow again from China
In this gloomy economic context, Ghana experienced presidential elections on Saturday December 7, 2024. Power now returns to John Dramani Mahama. Even before coming to power, he exchanged with Chinese Ambassador to Ghana, Tong Defa.
“Mr. Tong Defa conveyed to me a congratulatory message from President Xi Jinping”wrote this Friday, December 13, 2024 JD Mahama on X.
“Relations between our two countries have been characterized over the years by cooperation since the time of our first President, Dr Kwame Nkrumah”he added.
The future number 1 of the country of gold continued his remarks by discussing Ghana’s payment difficulties towards its creditors, including China. In Africa, Ghana ranks 10th most indebted to China. Its debt in 2022 is estimated at $5,353.79 million.
“Unfortunately, debt default has affected Ghana’s credit rating”recognized JD Mahama.
However, he wants to be optimistic. “By stabilizing the currency, we will work to restore the economy, stimulate economic growth and reduce inflation. Ghana must work even more closely with its partners, including China”he said.
Nana Akufoh-Addo’s successor promises to raise the bar for borrowing again from China.
“Once the transition is complete, we will begin discussing technical cooperation issues with China and how Ghana can continue to benefit from the FOCAC disbursement and the Belt and Road Initiative. ) »he concluded.
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