Ghana Gov'ts' Recent Upsurge In Borrowing In Itself Is Never Bad; Its Proper And Economical Application Is What Should Be Of Concern

Excessive borrowing in an economy like Ghana if not properly managed will further plummet the country into neck-deep poverty stricken status. Though Ghana’s debt to GDP ratio is in excess of 70% and worrying, the finance ministry and Gov't of President John Dramani Mahama have consistently explained that Ghana's current debt stock is manageable and accordingly plans and programmes put into place are sustainable and thus there is no course for anyone to be alarmed. Borrowing in itself is never bad but its proper and economical application is what matters.

Ghana’s Minister of Finance, Seth Tekper, has made public Gov’t measures in managing Ghana’s debts which includes using excess cash from the country’s stabilization fund to pay for debts, the issuing of more eurobonds, the financing of major capital infrastructure projects from other sources and not the budget.

Other measures include the use of some of the proceeds from the Ghana Infrastructure fund to settle some of the debts as well as the paying of commercial loans contracted by state owned enterprises by themselves and not by government. Gov’t has again explained its plans to lawfully and transparently use excess cash from the country’s stabilization fund to set up a ‘sinking fund’ which would be used to fund part of the country’s debt.

President John Mahama's Gov't has in many occasions explained that many of the borrowed many have been used for targeted/specific projects that upon completion those projects could easily pay off those facilities/credits/loans to ease the country’s debt burden. For example, some of the targeted/specific projects; some completed and some currently on going, are:

1. Ghana Gas project – US$1 Billion;
2. Reconstruction of the Kumasi Kejetia-Central Market Project-US$289 Million;

3. Kotoka International Airport (KIA) Terminal 2-US$21. 4 Million;

4. Kwame Nkrumah Interchange project-Euros €74.88 Million;

5. Tamale Airport expansion project-US$100 Million;

6. Kasoa Interchange Cost-US$172 Million;
7. The 617-bed University of Ghana Teaching Hospital-US$ 184 Million;

8. The 420-bed Ridge Hospital Expansion Project-US$ 250 million;

9. The 500-bed Military Hospital Project in Kumasi-US$ 180 million;

10.The first phase & Second phase of the Tamale Teaching Hospital, 800 bed facility- Euro €38 Million;

11.The 104 bed Police Hospital Project-BP£47 Million;

12.The 250 bed Ashanti Regional Hospital at Sewua-Kumasi (Part of Euroget- US$339 Million;

13.The 160 Upper West Regional Hospital (Part of Euroget- US$339 Million;

14.The 130 bed Maritime Hospital, Tema-GHC46 Million;

15.The 295 bed Bolgatanga Regional Hospital-US$48 Million;

16.The 7 district Hospital project by NMS Infrastructure each with 120 bed capacity (Dodowa, Fomena, Kumawu, Secondi, Takoradi]-US$ 175 Million;

17.Euroget six district hospital project each with 60 bed capacity (Tepa, Nsawkaw, Konongo, Madina, Salaga and Twifo Praso [all part of Euroget –US$ 339 Million;

18.Kpong Water Supply Expansion Project-US$273 Million and many more value-for- money and viable projects across the length and breadth of this country.

In the Health and Water sectors alone, Gov’t of Ghana has spent over US$1 Billion each. Other ongoing projects i.e. 150 out of 200 Community SHSs currently under construction, the Eastern Corridor Roads, the Cocoa Roads, the YES Initiative and many other Gov’t pro-poor initiated programes will not only provide medium to long term jobs for the Ghanaian youth but will to a large scale better the lots of the Ghanaian ordinary to middle income class.

The current managers of the economy mean well for Ghana and we are all duty bound to give them a helping hand in making Ghana buoyant and vibrant.

[Nuhu Ndebilla – Kumasi.]
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