Ghana's finance minister calls for financial reform in Africa

Ghana's finance minister calls for financial reform in Africa

- Ken Ofori-Atta has called for reform 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 reform 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. learned that he added that Ghana expected to record a GDP growth of 6.8% in 2020 but is currently projecting a 1.2% growth.

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Ken Ofori-Atta calls for reforms in Africa; says global investors are unfair
Ken Ofori-Atta, Minister of Finance Source: Bloomberg
Source: UGC

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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, reported that African countries have been cautioned against the misuse of funds borrowed from the international community.

The African Development Bank (AfDB) noted that several African countries are likely to be plunged into distress if corrective measures are not adopted with regard to the use of funds.

It stated that countries that access such funds need to channel them into developmental projects that would yield returns.

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