Ghana to Tighten Project Financing as Government Guards Against Another Debt Crisis

Ghana is set to adopt stricter financing standards for development projects as the government seeks to protect the country’s debt position and avoid a repeat of the economic pressures that culminated in the 2022 debt crisis.

Finance Minister Dr Cassiel Ato Forson said government would no longer contract loans merely because funding was available, insisting that proposed projects must demonstrate clear economic value before receiving financing.

“Ghana will now proceed with discipline. We will not borrow simply because financing is available,” Dr Forson stated.

He explained that projects financed through government’s cooperation with external partners would be subjected to greater scrutiny, with emphasis placed on their ability to contribute meaningfully to economic growth.

Under the approach, projects must be economically justified, transparently procured and capable of generating revenue, creating jobs, increasing exports, improving productivity or reducing costs.

Dr Forson specifically cited major infrastructure investments such as roads, railways, power plants and industrial enclaves, stressing that such projects must produce measurable benefits for the economy rather than add to the country’s debt burden without corresponding returns.

“Any road, railway, power plant, industrial enclave or other infrastructure financed through this cooperation must improve productivity, create jobs, increase exports and strengthen Ghana’s ability to repay its obligations,” he said.

The Finance Minister also disclosed that government intends to broaden the sources from which it secures development financing while maintaining strict controls over public debt.

“We will diversify our financing sources, protect debt sustainability and avoid a return to the conditions that led to the 2022 debt crisis,” he stated.

Dr Forson made the remarks during the Fifth Session of the Ghana–China Joint Commission on Economic, Trade and Technical Cooperation.