Economy
SONA 2023: Loans invested wisely to improve quality of life

President Nana Akufo-Addo has rejected accusations of reckless borrowing and expenditure over the past six years.
Social amenities and infrastructure
According to him, the borrowed funds have been spent on projects and programmes that inured to the benefits of citizens in terms of providing social amenities and basic infrastructure.
Expenditure on key sectors
“Yes, I have been in a hurry to get things done, and this includes massive developments in agriculture, education, health, irrigation, roads, rails, ports, airports, sea defence, digitisation, social protection programmes, industrialisation, and tourism.
“We can be justifiably proud of the many things we have managed to do in the past six years,” he stated.
Not all debts contracted in 6 years
Delivering the State of the Nation Address (SONA) in Parliament, President Nana Akufo-Addo said the debts being serviced were not only contracted during the period of this administration.
SONA
SONA is in accordance with Article 67 of the 1992 Constitution of Ghana, which states that the President shall deliver a message on the SONA to Parliament at the start of each session and before the dissolution of Parliament.
SONA is a constitutional obligation and yearly tradition, wherein the Commander-In-Chief of the Ghana Armed Forces reports on the status of the country, unveils the Government’s agenda for the coming year, and proposes to Parliament certain legislative measures.
To that end, Article 67 of the 1992 Constitution of Ghana imposes an obligation on Members of Parliament, the Speaker, and the Judiciary to receive the President’s SONA.
President Nana Akufo-Addo said “We have spent money on things that are urgent, to build roads and bridges and schools, to train our young people and equip them to face a competitive world.
“Considering the amount of work that still needs to be done on the state of our roads, the bridges that have to be built, considering the number of classrooms that need to be built, the furniture and equipment needs at all stages of education, considering the number of children who should be in school and are not, considering the number of towns and villages that still do not have access to potable water, I daresay no one can suggest we have over borrowed or spent recklessly,” he stressed.
Innovative policies and execution of projects
President Nana Akufo-Addo is proud that his Administration has over the last six years championed innovative policies and execution of projects that have helped improved the quality of life of the Ghanaian people.
He pledged to continue on a path that brings the most benefit to the people of Ghana.
Built more roads
He boasted that his government has built more roads and constructed more railways than any government in the history of the 4th Republic.
Ghana Card, Zongo Development Fund
Beyond the construction of roads, he said, the New Patriotic Party (NPP) Administration had also implemented successfully a National Identification System with the Ghana Card, and also established the Zongo Development Fund to address the needs of Zongo and inner-city communities.
Access to toilet facilities
“We have constructed more infrastructure in the Zongo Communities than any other government in the Fourth Republic,” he stressed, adding that the Government had worked assiduously to increase the proportion of the population with access to toilet facilities from 33% to 59%.
Public libraries increased from 61 to 115
“There has also been an increase in the number of public libraries from 61 from independence until 2017 to 115 in 2022;” he said.
Retooling security agencies
President Nana Akufo-Addo said government had provided more equipment, that is, vehicles, ammunition, among others, to security services than any other government in the Fourth Republic, while successfully implementing the Digital Address System.
106 1D1F companies operational
On industrialisation, he said, in four years, 106 companies had been completed and in operation under the ‘One District, One Factory (1D1F).
148 1D1F factories under construction
According to him, 148 factories are under construction-the largest expansion of that sector since independence.
Largest medical drone delivery service saving lives
On health, he indicated that his Administration had introduced drones in the delivery of critical medicine, vaccines and blood to people in remote parts of the country.“Today, Ghana has the largest medical drone delivery service in the world with six Zipline Distribution Centres in Omenako, Mpanya, Vobsi, Sefwi Wiawso, Kete Krachi and Anum,” the President stated.
Rehabilitation and modernisation of large-scale irrigation schemes
On agriculture, the President said, in 2022, the Government completed the rehabilitation and modernisation of large-scale irrigation schemes at Tono, Kpong and Kpong Left Bank projects.
6,766 hectares of irrigable land
“The three schemes are expected to provide 6,766 hectares of irrigable land for all-year-round crop production,” he stated.
Tamne Irrigation Project
Phases One and Two of the Tamne Irrigation Project had also been completed, with Phase Three of the project at 57% completion.
$29.9 million worth of machinery and equipment
He said government has procured $29.9 million worth of machinery and equipment to boost agriculture mechanisation in Ghana.
He said government would this year, start preparatory works for the establishment of a Tractor and Backhoe Loader Assembly factory in the Ashanti Region and continuous capacity building of operators to ensure optimal management and lengthen the lifespan of agricultural machinery.
65 warehouses completed
President Akufo-Addo said the Government had constructed 65 warehouses, with 15 others at advanced stages of completion, to help address the vexed issue of post-harvest losses.
“This intervention is adding some eighty thousand metric tonnes (80,000mt) to national grain storage capacity,” he stated.
Decisions to save lives during COVID-19
President Nana Akufo-Addo said the government during the peak of COVID-19 on the African continent had to make decisions which based on science were the most reliable and trusted ways to save lives and livelihoods at the time.
According to him, though these decisions might look unnecessary and strange today, criminality or reckless spending cannot be ascribed to measures such as fumigation of public spaces, provision of GH₵518 million in grants and loans to Micro, Small and Medium-scale Enterprises (MSMEs) and preparing and distribution of hot meals to the vulnerable in society.
“In dealing with the crisis generally, I did not meet anyone brave enough to suggest that considerations of money should be a hindrance to anything we needed to do in the fight against the virus,” he said.
COVID-19 funds audit
The President also noted that the importance of not losing public confidence during the challenging times led the government to ask for the audit of the COVID funds.
COVID-19 funds used well
“And I can assure this House that nothing dishonourable was done with the COVID funds. The responses from the Ministers for Health and Finance, on January 23 and 25, 2023, respectively, have sufficiently laid to rest the queries from the Auditor General’s report.
“No auditor can put a figure on the cost of keeping the children in school safely during that crisis, nor the continuing cost of the effect of the pandemic on our young people; not the financial cost, not the emotional cost, and certainly not the social cost,” the President said.
International Monetary Fund
President Nana Akufo-Addo announced that the International Monetary Fund (IMF) staff will present Ghana’s request for a loan programme to its executive board by the end of the month.
Ghana secured a staff-level agreement with the IMF in December for a $3 billion loan, but approval is contingent on it restructuring its debt of GH₵575.7 billion ($47.6 billion).
“We are on course for the IMF staff to present to the IMF executive board Ghana’s programme request for a $3 billion extended credit facility by the end of the month,” he added.
COVID-19, Russia-Ukraine war, soaring energy and food prices, higher interest rates, a strong dollar and a global slowdown negatively affected the economy.
President Nana Akufo-Addo explained that prior to the onset of the exogenous forces, his administration in three years reduced inflation to its lowest level (7.8% in January 2020) since 1992.
He added that for the first time in over 40 years, government recorded a fiscal deficit below five percent of Gross Domestic Products (GDP) for three years in a row.
For the first time in over 20 years, he stated that the balance of trade (that is the difference between our exports and imports) has been in surplus for three consecutive years.
He stated that current account deficit is shrinking, interest rates declining, and the average annual rate of depreciation of the cedi was at its lowest for any first term government in the Fourth Republic.
He recalled that economic growth rebounded to place Ghana among the fastest growing economies in the world for three years in a row at an annual average of 7%, up from 3.4% in 2016, the lowest in nearly three decades.
“The international investor community has recognised this development, resulting in Ghana, today, being the largest recipient of foreign direct investment in West Africa.
“The sovereign credit ratings agencies upgraded ratings, and also improved the outlook for this year, notwithstanding the fact that it is an election year,” he stressed.
Turning to security issues, the president said that while he did worry about the extraordinary expenditure on security at the country’s borders, Ghana had no choice but to spend resources to keep its borders safe.
- Soldier slaps policeman provoking violent clash in Accra Central – 27 March 2023
- Kamala Harris: US to engage Ghana’s creditors for debt reduction – 27 March 2023
- Ofori-Atta says creditors agree to form Committee on Ghana – 27 March 2023
Economy
IMF tells external creditors to support Ghana

Government says it is confident of getting financing assurances from its external creditors in a short time to secure a Management Board approval from the International Monetary Fund (IMF).
Restoring debt sustainability
This follows successful talks with China and Paris Clubs with a call by the International Monetary Fund (IMF) asking all bilateral creditors to support Ghana’s efforts to restore debt sustainability, as the country works towards presenting its economic programme for IMF Executive Board approval.
Positive and encouraging meetings in China
“So far had very positive and encouraging meetings in China,” the Ministry of Finance said in a Tweet on Friday.
Outstanding domestic revenue bills
“Looking forward to securing external assurances very soon, even as we pass our outstanding domestic revenue bills back home. Great progress on all fronts,” the Tweet added.
Financing assurances
Director of Communications at the IMF, Julie Kozack, stressed the importance of Ghana securing financing assurances from partners and creditors, as a necessary step towards the presentation of its programme $3 billion request to the IMF’s Executive Board for approval.
Bilateral creditors
“We’re calling on bilateral creditors to support Ghana’s effort to restore debt sustainability, form an official creditor committee, and deliver the necessary financing assurances as soon as possible,” Madam Kozack said at a news conference in Washington DC in the United States of America.
“While the IMF is engaging the Ghanaian authorities on the progress made on its request, the Fund is also seeking the assurances from Ghana’s partners,” she added.
Objectives of IMF prograame
The $3 billion IMF programme aims to support common efforts to restore macroeconomic stability, debt sustainability, while also protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive growth.
5 agreed Prior Actions
Out of the five agreed Prior Actions in the Staff Level Agreement government has already completed three.
3 agreed Prior Actions fulfilled
These are tariff adjustment by the Public Utilities Regulatory Commission (PURC), Publication of the Auditor-General’s Report on COVID-19 spending, as well as onboarding of Ghana Education Trust Fund (GETFund), District Assemblies Common Fund (DACF) and Road Fund on the Ghana integrated financial management information system (GIFMIS).
The fourth is the passage of the Income Tax (Amendment) Bill, Excise Duty and Excise Tax Stamp (Amendment) Bills which parliament is expected to do this week.
GH₵83 billion DDEP completed
A Domestic Debt Exchange Programme (DDEP) swapped a total of GH₵83 billion worth of old bonds for new ones with the expectation of finishing similar exercise with its external creditors made up of bilateral partners and Eurobond investors.
IMF MD happy with progress
Managing Director of the IMF, Kristalina Georgieva, had said the Fund was happy with Ghana’s progress to present its SLA for the Fund’s review and approval.
Last week, China’s Foreign Ministry Spokesperson Wang Wenbin has stated that China attaches great importance to resolving Ghana’s debt issues and understands the difficulties facing the country at the moment.
Enhanced communication
“We would like to enhance communication with Ghana to work out a proper settlement through consultation,” he said.
Joint efforts of international partners required to resolve debt issues
He pointed out that properly resolving the issues concerning Ghana’s debt requires the joint efforts of Ghana and all international partners.
Regular Press Conference
Wenbin made the remark a Regular Press Conference held on March 22, 2023, in response to a question on Ghana’s finance minister visiting Beijing for a proposed restructuring of Ghana’s debt.
Ghana-China meeting confirmed
Wenbin confirmed a planned meeting between a high powered Ghanaian delegation led by Finance Minister Ken Ofori-Atta and officials of competent departments of China on bilateral cooperation in relevant areas.
Institutions the delegation will meet
The delegation is expected to hold discussions with officials of the Finance Ministry of China, Central Bank of China, and China’s Eximbank, principally over how to cross the debt restructuring line with China, ideally as part of the common framework with the Paris Club.
Key stakeholders in debt relief efforts
Wenbin stated that China always believes that multilateral financial institutions and commercial lenders, who are the main creditors for developing countries, need to participate in developing countries’ debt relief efforts.
China’s loans account for less than 5% of Ghana’s total public debt
He stressed that official bilateral loans related to China only account for less than five percent of Ghana’s external debt.
$54bn total public debt stock
Ghana’s total public debt stock stands at $54 billion, out of which $28 billion is owed to foreign creditors.
Ghana owes China $1.9bn
Out of Ghana’s $8.5 billion bilateral loans, about $1.9 billion is owed to China.
Important cooperation partner in Africa
Wenbin described Ghana as China’s important cooperation partner in Africa.
Cooperation yielded tangible benefits to both sides
According to him, in recent years, practical cooperation between the two countries has yielded fruitful outcomes and brought tangible benefits to both sides.
Chinese Delegation visited Ghana earlier
In the first week of March this year, a Chinese Delegation was in Ghana for a 3-Day mission to engage the Government of Ghana, following a request for the restructuring of Ghana’s $1.9 billion debt owed to China.
Delegation examined indebtedness to China
The meeting between officials of the Ministry of Finance and their counterparts from China examined Ghana’s indebtedness to China and the possible ways the Asian giant can support the government’s external debt restructuring – a precursor to a bailout from the IMF to resuscitate the economy.
Data sharing
There was data sharing between the two governments, with discussions being held at the technical level, on the parameters of an effective debt treatment.
Ghana’s planned Mission to China
The team visited ahead of Ghana’s planned Mission to China, all in line with ongoing negotiations for a sovereign debt treatment.
Ghana seeking extension of maturities, debt servicing, lower interest rates
Information indicates that Ghana seeking among other reliefs, an extension of the moratorium on debt servicing; an extension of maturities; and lower interest rates.
$3bn staff-level agreement reached in December 2022
In December 2022, the government reached a staff-level agreement with the fund and is now left with board-level approval before it can access the $3 billion support.
Restructuring of domestic and external debt
However, the board-level approval is hinged on the country’s ability to restructure its domestic and external debt.
China remains a key partner for Ghana and it has consistently been a crucial part of the country’s socioeconomic development.
China had supported the country through vital projects that spurred growth and job creation nationwide.
The Chinese delegation, as part of the 3-day Mission met with the Vice-President, Alhaji Dr Mahamudu Bawumia, the Minister for Finance, Mr Ken Ofori-Atta, and technical teams from the Ministry of Finance.
The Chinese Ambassador to Ghana, Mr Lu Kun, also hosted the delegation at a luncheon yesterday.
In attendance were members of the Chinese delegation, the Minister for Finance, Mr Ken Ofori-Atta; Minister of Foreign Affairs, Ms Shirley Ayorkor Botchwey; Ghana’s Ambassador to China, Dr Winfred Nii Okai Hammond, and officials of the Ministry of Finance.
- Soldier slaps policeman provoking violent clash in Accra Central – 27 March 2023
- Kamala Harris: US to engage Ghana’s creditors for debt reduction – 27 March 2023
- Ofori-Atta says creditors agree to form Committee on Ghana – 27 March 2023
Economy
China expresses interest in resolving Ghana’s debt issues

China’s Foreign Ministry Spokesperson Wang Wenbin has stated that China attaches great importance to resolving Ghana’s debt issues and understands the difficulties facing the country at the moment.
Enhanced communication
“We would like to enhance communication with Ghana to work out a proper settlement through consultation,” he said.
Joint efforts of international partners required to resolve debt issues
He pointed out that properly resolving the issues concerning Ghana’s debt requires the joint efforts of Ghana and all international partners.
Regular Press Conference
Wenbin made the remark a Regular Press Conference held on March 22, 2023, in response to a question on Ghana’s finance minister visiting Beijing for a proposed restructuring of Ghana’s debt.
Ghana-China meeting confirmed
Wenbin confirmed a planned meeting between a high powered Ghanaian delegation led by Finance Minister Ken Ofori-Atta and officials of competent departments of China on bilateral cooperation in relevant areas.
Institutions the delegation will meet
The delegation is expected to hold discussions with officials of the Finance Ministry of China, Central Bank of China, and China’s Eximbank, principally over how to cross the debt restructuring line with China, ideally as part of the common framework with the Paris Club.
Key stakeholders in debt relief efforts
Wenbin stated that China always believes that multilateral financial institutions and commercial lenders, who are the main creditors for developing countries, need to participate in developing countries’ debt relief efforts.
China’s loans account for less than 5% of Ghana’s total public debt
He stressed that official bilateral loans related to China only account for less than five percent of Ghana’s external debt.
$54bn total public debt stock
Ghana’s total public debt stock stands at $54 billion, out of which $28 billion is owed to foreign creditors.
Ghana owes China $1.9bn
Out of Ghana’s $8.5 billion bilateral loans, about $1.9 billion is owed to China.
Important cooperation partner in Africa
Wenbin described Ghana as China’s important cooperation partner in Africa.
Cooperation yielded tangible benefits to both sides
According to him, in recent years, practical cooperation between the two countries has yielded fruitful outcomes and brought tangible benefits to both sides.
Chinese Delegation visited Ghana earlier
In the first week of March this year, a Chinese Delegation was in Ghana for a 3-Day mission to engage the Government of Ghana, following a request for the restructuring of Ghana’s $1.9 billion debt owed to China.
Delegation examined indebtedness to China
The meeting between officials of the Ministry of Finance and their counterparts from China examined Ghana’s indebtedness to China and the possible ways the Asian giant can support the government’s external debt restructuring – a precursor to a bailout from the IMF to resuscitate the economy.
Data sharing
There was data sharing between the two governments, with discussions being held at the technical level, on the parameters of an effective debt treatment.
Ghana’s planned Mission to China
The team visited ahead of Ghana’s planned Mission to China, all in line with ongoing negotiations for a sovereign debt treatment.
Ghana seeking extension of maturities, debt servicing, lower interest rates
Information indicates that Ghana seeking among other reliefs, an extension of the moratorium on debt servicing; an extension of maturities; and lower interest rates.
$3bn staff-level agreement reached in December 2022
In December 2022, the government reached a staff-level agreement with the fund and is now left with board-level approval before it can access the $3 billion support.
Restructuring of domestic and external debt
However, the board-level approval is hinged on the country’s ability to restructure its domestic and external debt.
China remains a key partner for Ghana and it has consistently been a crucial part of the country’s socioeconomic development.
China had supported the country through vital projects that spurred growth and job creation nationwide.
The Chinese delegation, as part of the 3-day Mission met with the Vice-President, Alhaji Dr Mahamudu Bawumia, the Minister for Finance, Mr Ken Ofori-Atta, and technical teams from the Ministry of Finance.
The Chinese Ambassador to Ghana, Mr Lu Kun, also hosted the delegation at a luncheon yesterday.
In attendance were members of the Chinese delegation, the Minister for Finance, Mr Ken Ofori-Atta; Minister of Foreign Affairs, Ms Shirley Ayorkor Botchwey; Ghana’s Ambassador to China, Dr Winfred Nii Okai Hammond, and officials of the Ministry of Finance.
- Soldier slaps policeman provoking violent clash in Accra Central – 27 March 2023
- Kamala Harris: US to engage Ghana’s creditors for debt reduction – 27 March 2023
- Ofori-Atta says creditors agree to form Committee on Ghana – 27 March 2023
Economy
3 hurdles to clear this week for IMF board to approve $3bn bailout

For the Board of the International Monetary Fund (IMF) to approve Ghana’s $3 billion bailout at the end of this month, Ghana needs to achieve three critical milestones this week.
Ghana has started to actively engage external debtors with the view to getting debt cancellation, especially from the Paris club of creditors.
The first stop of a government delegation seeking debt restructuring will be in China as that country holds $1.7 billion out of Ghana’s $5.7 billion bilateral debt.
Delegation to China
Finance Minister, Ken Ofori-Atta left Accra yesterday leading a high-powered government delegation to China to negotiate for the acceptance of the country’s proposal for debt cancellation with the Paris club.
The delegation will hold discussions with officials of the finance ministry of China, the central bank of China, and China’s Eximbank, principally over how to cross the debt restructuring line with China, ideally as part of the common framework with the Paris Club, which also includes Russia.
The Chinese who are not members of the Paris Club have so far dragged their feet.
Other non-member creditors like Saudi Arabia and India on the other hand, are expected to join the Paris Club meetings.
Delegation to meet Paris Club in France
From China, the delegation will travel to Paris in France to hold discussions with the Paris Club tomorrow, Tuesday, March 21, 2023.
That meeting is most critical in determining how quickly Ghana can secure the IMF deal.
In January, all member countries of the G20 group of economic powers said they are on board for a restructuring of Ghana’s debt and Paris Club members are ready to take the first step toward forming a creditor committee.
The work of the Committee will, typically, take about three weeks.
Tuesday’s meeting will set the ball rolling and give Ghana the greatest indication yet as to how quickly the anticipated IMF deal can be closed.
Forming a creditor committee took a couple months for previous cases, however the official said the Paris Club members were all ready to do so for Ghana and hoped it could be done in a month.
The official said Ghana’s case was less complex than Zambia, whose case the official said was progressing after struggling since it became the first African country to default after the pandemic.
The programme, which was launched in 2020, was supposed to streamline the process of coordinating among creditor governments the restructuring of low-income countries’ debts after the pandemic.
However, progress has proven glacial for the first cases; a situation Western countries say is in part due to a lack of restructuring experience by China, a non-Paris Club G20 creditor that has become a major lender in recent years.
3 Bills Parliament must pass
On Thursday Parliament will vote on three key revenue bills which must be passed to indicate Ghana’s seriousness and doing better than being below the continental average on revenue mobilisation.
The bills are the Income Tax (Amendment) Bill, the Excise Duty & Excise Tax Stamp (Amendment) Bills and the Growth and Sustainability Levy Bill.
The passage of these bills and a successful meeting with the Paris Club are the most crucial things the IMF Board will require to approval the deal for Ghana.
Ghanaians now can only wait and see the timetable to be set by the 22-member nations Paris Club, which holds majority of the country’s bilateral debts.
But, Ghanaian officials have been having prior engagements with the creditor nations involved, why should all help speed up the process.
Ghana hopes Ofori-Atta’s trip can help get China to join the Paris Club meetings, which will agree on a common framework for all its member creditors, including Belgium, UK, USA, Japan, Denmark and the Netherlands.
Alternatively, failing which, Ghana can do a separate bilateral deal with China, but on similar principles of restructuring. That is also at the heart of the Ghanaian delegation’s business in China this week. The team should return next Sunday.
Parliamentary action
The nation’s fate after the successful implementation of the Domestic Debt Exchange Programme is also now heavily dependent on Parliament who meet this Thursday 23 March to vote on the three revenue bills.
Members of Parliament from the National Democratic Congress caucus have been directed by the NDC secretariat to vote against the three bills.
Minority Leader, Cassiel Ato Forson last week suggested that the seeming delay in agreeing on a debt restructuring deal with China is what could kill the IMF deal but was silent on the bills the House is required to pass.
The China factor
Ofori-Atta who left Accra Sunday afternoon will first stop over in Addis Ababa, Ethiopia, to attend the African Finance Ministers’ meeting, which will revolve around the continent’s suffocating debts.
He will meet United Nations Economic Commission for Africa (UNECA) as well, again on concerns over Africa’s growing indebtedness, especially since Covid-19.
Negotiation with external creditors
Negotiations with Eurobond holders are said to have been significantly smoothened since the successful completion of the Domestic Debt Exchange Programme (DDEP) and in principle, a framework of a deal with holders of Eurobond has been fashioned out.
Ghanaian officials have met with all executive directors of the IMF, including Germany, the United Kingdom, France, Japan, and the USA.
Ghana will most likely be looking after the Spring Meetings of the IMF and World Bank in Washington DC, which will take place from April 10 to 16 2023, for the IMF Executive Board.
The IMF and Ghana reached a staff-level agreement on the U$3 billion loan deal in December 2022. Ghana was expected to conclude its domestic debt restructuring by end of January but that was also delayed due to an understandable struggle with bondholders and their representatives on the nature, structure and scope of the domestic debt exchange exercise.
The decision by the Paris Club to only now meet on Ghana has also meant that the IMF deal will have to wait for the work of the Paris Club’s Creditors Committee to be completed on the common framework first.
- Soldier slaps policeman provoking violent clash in Accra Central – 27 March 2023
- Kamala Harris: US to engage Ghana’s creditors for debt reduction – 27 March 2023
- Ofori-Atta says creditors agree to form Committee on Ghana – 27 March 2023
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