By Enyichukwu Enemanna
Ghana’s President John Dramani Mahama on Wednesday said the African continent is not an investment risk, rather an opportunity that should be seized.
Mahama who spoke at an investor conference in London is pushing for relation with UK anchored on enterprise and innovation as against aid and support.
He called for cooperation to “evolve from one that is primarily shaped by aid, to one that is anchored in enterprise innovation and investment.”
“Africa is not a risk to be managed. Africa is an opportunity to be seized,” Mahama said.
Mahama and his country’s finance minister Cassiel Ato Forson are in agreement that African debt was “mispriced”, calling for a faster and fairer restructuring tools.
They said their country was targeting an investment-grade credit rating within three years.
The West African gold, oil, and cocoa-producing country’s economy is on the mend after a 2022 debt default that required restructuring of the government’s external and domestic debt.
“Debt restructuring mechanisms must become faster, fairer and more inclusive,” Mahama said.
Ghana restructured its debt under the G20’s Common Framework debt-restructuring mechanism, which some have said is too slow.
Mahama called for debt reform that supports development and said the continent needs climate finance as well.
The Finance Minister Forson said Ghana should be in investment-grade territory within three years. The major international agencies currently have its sovereign rating several notches lower, in sub-investment or “junk” status.
He added that there had been a surge in state-owned enterprises that was not ideal for the economy. While investors often want to place money with the sovereign, he said that risked increasing debt and that “government alone cannot do it”.
