Ghana has taken record US$31.1bn in Chinese loans since exiting HIPC in 2004 – Report

• Dec 12, 2023

Ghana has been ranked as the country with the highest overall debt owed the Chinese government and its institutions.

According to a report submitted to US Congress by the US-China Economic and Security Review Commission, Ghana after being declared a Highly Indebted Poor Country (HIPC) in 2004, has received a total of $31.1 billion dollars in loans from the Chinese.

The date shows that Ghana is followed by Guinea ($21.9b), Ethiopia ($14.8b), Tanzania ($12.6b), Democratic Republic of Congo ( $12.1b), Mozambique ($7.9b), Sudan ($6.7b), Zambia ($4.6b), Bolivia ($4.1b), Chad ($3.2b), Senegal ($3.1b), Niger ($2.7b), Mali ($2.6b) and Cameroon ($1.8b).

Meanwhile, economist, Dr Theo Acheampong has likened the situation to debt distress of the 1970 through to the early 2000s and its impact on African nations.

“Very interesting visual. I thought Ethiopia would have taken more Chinese loans than Ghana. Data comes from the US-China Economic and Security Review Commission. According to the Commission, 60% of China’s debtor nations were in financial distress in 2022, up from 5% in 2010. But how is this any different from the debt distress of the 1970s, late 90s to early 2000s, which led to the likes of HIPC/MDRI? Same game, just different players!” he shared in an X post.

The report on the Chinese debt comes on the back of a recent data which placed Ghana as the 7th among African countries carrying the highest debts to the International Monetary Fund (IMF) with an amount of $1,644,377,000.

As of December 6, 2023, the Fund’s official website revealed the ten African countries carrying the highest debts to the organization.

Egypt was the most indebted with US$11,968,321,674 followed by Angola, South Africa, and Cote d’Ivoire with an amount of US$3,153,816,667, US$2,669,800,000, US$2,117,559,620 respectively

Ghana has since late 2019 been going through a phase of serious economic challenges which has led to unprecedented inflation and exchange rate hikes coupled with a spike in the cost of living.

The government has primarily blamed the situation on the impact of the COVID-19 pandemic and the Russia-Ukraine war.

However, critics cite other reasons including mismanagement as part of reasons accounting for the country’s woes.

Read the full Congress report below:

Source: www.ghanaweb.com