Britain and Ghana on Wednesday signed a bilateral agreement to restructure debts equivalent to 256 million U.S dollars.
The agreement extends the maturity date of Ghana’s bilateral debts to its former colonial master by 15 years.
John Humphrey British Trade Commissioner to Africa, and Ghana’s Finance Minister Cassiel Ato Forson signed on behalf of their respective countries.
Humphrey said the decision was in line with Ghana’s external debt restructuring with its bilateral partners which began in 2023.
“This agreement signals the sort of confidence, partnership, and shared ambition that exists between Britain and Ghana. And by restructuring this debt in partnership with the Paris Club and G20, we are creating the fiscal space Ghana needs to deliver on its bold vision for the future,” he added.
According to him, the fiscal space was aimed to support initiatives such as the 24-hour economy and the” Big Push” infrastructure program.
“These are not just slogans, they are transformative agendas that will drive jobs and innovation, and create prosperity for millions of people. Britain is proud to stand with Ghana on this journey. We are reconnecting with the world and doing trade differently and moving beyond traditional models to embrace innovation, sustainability and long term investment,” Humphrey added.
He added that Britain is excited to be working with the West African country to deliver growth, attract investments and create a future where trade is not just about transactions but about transformation.
In his response, Forson listed a number of road infrastructure projects that the assistance from Britain would be invested in to improve the country’s road networks, create jobs, and boost economic activities across the country.
“The government of Ghana will take steps to ensure that we do what we have to do from our side, so that together we can begin the disbursement of these facilities so these projects can begin in earnest,” he said.
According to Forson, Ghana was experiencing some significant economic recovery after the recent downturn which compelled Ghana to seek help from the International Monetary Fund, adding that the agreement with Britain would send a signal to the rest of Ghana’s bilateral partners who are also to sign the agreement to come on board.
Per the agreement with the Paris Club and the G20 nations, each bilateral partner is to sign a country level agreement with Ghana on debt restructuring as part of Ghana’s debt rationalization.