World Bank and IMF raise concerns as Ghana’s public debt hits GHC215 billion

World Bank and IMF raise concerns as Ghana’s public debt hits GHC215 billion

- The International Monetary Fund (IMF) and the World Bank have expressed worry about the current level of debt Ghana has

- Dr. Albert Touna-Mama of the IMF stated that it has placed the country in a very dangerous situation

- Pierre Frank Laporte of the World Bank advised that it is important the recommended thresholds of debt are not exceeded

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The International Monetary Fund (IMF) and the World Bank have raised concerns about Ghana’s current debt levels.

According to the IMF resident representative to Ghana, Dr. Albert Touna-Mama, the country is in a very dangerous situation due to its public debt which currently stands at GHC215 billion.

Dr. Touna-Mama, per a story by citibusinessnews.com, explained that Ghana’s current debt ratio in relation to revenue is about 30%, which is almost double that of its peers, the average of which is about 18%.

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The minister of finance, Ken Ofori-Atta, revealed that Ghana is expected to use GHC21.7 billion, which is about 5.4% of its Gross Domestic Product (GDP) to service the interest on its debt.

Out of this amount, domestic interest payments are expected to be about 76.3% which is GHc16.6 billion.

The World Bank, in February 2020, warned Ghana against increased external debt and exceeding the sustainability threshold.

It went on to state that Ghana has currently been ranked as a moderate to high-risk debt distressed country and for that reason, it needs to operate carefully.

The World Bank’s country director, Pierre Frank Laporte, noted that it is important Ghana does not cross the recommended thresholds of debt sustainability.

In other news, Outrider, a company founded in 2017, has raised $53 million to develop a technology that would make yard trucks autonomous.

This follows a growing trend which shows how driverless technology is transforming the transportation sector.

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Outrider is focused on automating vehicular movement in freight hubs to reduce costs as it improves safety.

After securing funds following a series of rounds in order to propel its vision, plans are in place to conduct a pilot test with four Fortune 200 companies.

It would also conduct business with Georgia-Pacific, one of the world’s largest manufacturers and distributors of tissue, pulp, paper, and more.

YEN.com.gh understands that Outrider neither owns nor operates the vehicles itself. It provides a software-as-a-service (SaaS) solution for customer-owned fully and semi-autonomous freight and transportation fleets, as well as a team of technicians, to remotely monitor the progress of those fleets.

Information available shows that the market for driverless trucks is likely to reach 6,700 all over the world after it generated $54.23 billion in 2019.

It also stands to save the logistics and shipping industry an estimated $70 billion every year while boosting productivity by 30%.

READ ALSO: Bank of Ghana reveals it has received a $3 billion Eurobond

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Source: Yen Ghana

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