Ghana would be a pioneer in social ties in Africa, taking advantage of a tool that has been fueled by the COVID-19 pandemic.
Ghana plans to issue green and social bonds up to $ 2 billion by November, making it the first African country to sell debt to finance development programs.
The West African economy, which plans to lend up to $ 5 billion on international markets this year, will use the proceeds from these sustainable bonds to refinance debt used for social and environmental projects and pay for it. education or health, Ghanaian Finance Minister Ken Ofori- Atta said in an interview in the capital, Accra.
“The expectation is that the bonds will be issued in the fall and the maximum could be $ 2 billion,” after Ghana already sold $ 3.03 billion in March of the $ 5 billion for which approved the balance, said Ofori-Atta. Of the total, $ 3.5 billion will be used to refinance the debt already raised. “Our new current debt will be $ 1.5 billion,” he said.
Ghana would be a pioneer in social ties in Africa, taking advantage of a tool that has been fueled by the coronavirus pandemic. However, only a few sovereigns have sold them so far, including Chile and Ecuador. The country will use the proceeds to move forward with a free secondary school initiative launched in 2017 among other programs, despite having recorded its lowest economic growth rate in 37 years by 2020.
Sustainable bonds “are not good, there is no discount,” Ofori-Atta said. “We will seek to negotiate for the best terms.”
Africa’s largest gold producer, which faces a balance sheet gap of 9.5% of gross national product this year, from a shortfall of 11.7% in 2020, expects its production to expand by 5%. by 0.4% last year.
It also works to improve tax revenue collection, which has been historically low compared to regional equities. This comes after President Nana Akufo-Addo said the tax base would grow more than fivefold to 15.5 million after the government’s implementation on April 1 of a system where all national identification numbers serve as tax numbers.
“We really want to be able to double our tax revenues to about 28% of GDP using digitalization, so we can create a much more vibrant economy in the next three years,” Ofori-Atta said.
Lack of vaccines
Plans to revive the economy and deepen the state stock market remain vulnerable to a new wave of pandemic, he said.
Ghana’s ambition to boost the immunity of gangs from vaccination of 20 million people against Covid-19 has become a challenge, mainly because of the nationalization of vaccines, Ofori-Atta said. “The western world can have about 68 doses per 100 people while Ghana has 2 doses per 100 and that cannot continue.”
Ghana has failed the vaccination beyond the 1.3 million gift strokes received mainly by the Covax initiative supported by the World Health Organization, with smaller donations coming from the Indian government and the largest African telephone operator, MTN Group Ltd.
If vaccines were readily available, the country would also need more than $ 300 million to buy what it needs, according to Ofori-Atta.
“This has become our Achilles heel to move forward,” he said.