- Ken Ofori-Atta has called for reforms in Africa in the wake of the outbreak of the coronavirus
- He revealed that Ghana's GDP growth has been revised from 6.8% to 1.2% due to the economic impact of COVID-19
- Ofori-Atta added that other countries borrow at cheaper rates while African countries borrow at rates between 6% to 8%
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The Minister of Finance, Ken Ofori-Atta, has called for deeper reforms as Africa combats the outbreak of the coronavirus.
In his opinion, the coronavirus pandemic has undoubtedly had the greatest economic impact since World War II.
He added that Ghana expected to record a GDP growth of 6.8% in 2020 but is currently projecting a 1.2% growth.
READ ALSO: Gov't to source funds from FDIs and PPPs for GHc100bn Ghana Cares Programme
Ofori-Atta noted that the deficit was jealously guarded and kept under 5% but it has currently increased to about 10%.
Per a report by Bloomberg, he stated it is important that a new special-purpose vehicle is created to wipe out all of Africa's debt.
This, he said, could serve as a new mechanism for financing and reaching the capital market at a cheaper rate.
Ofori-Atta stated this would help de-risk the African risk, which is believed to be unfair.
He explained that there is no basis to borrow at 6%, 7%, or 8% while other countries borrow at cheaper rates.
He added that there is a need for strong leadership and compassion in the global financial infrastructure to redesign the situation and make it effective for everyone.
In other news, Ken Ofori-Atta, has informed Parliament that Ghana has been officially recognised as the first African country to issue a 41-year bond and a second tri-tranche bond.
Details show that Ghana successfully raised $3 billion in the international capital market.
The money came in three tranches of 6-year, 14-year, and 41-year Eurobonds of $1.25 billion, $1.0 billion, and $750.00 million respectively on February 4, 2020.
READ ALSO: African Development Bank supports Ghana's COVID-19 fight with $69 million
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