Little common-sense steps to improve the wellbeing of all (III)

  • review of major loans from 1992

The recent commentary on our loans brings a lot to mind as per the purpose/objectives for which the loans are taken and how far we get with the objectives.  Researches by credible institutions point to Ghana having over 90 percent uncompleted project rates. Across Ghana are littered projects from mid 70s before some of us were born.

Most of these projects were undertaken with debts which we are paying if not forgiven under HIPC. The first Eurobond in 2008 was issued to solve energy challenges and then what happened? Within 3 years and after an issued 750mn USD facility we were in dumsor which had serious negative multiplier effects on the economy.  What happened to the 750mn? With subsequent energy breakdowns from 2012 etc.

Subsequently the nation has undertaken various loans for critical projects yet the purpose for which the loans were acquired are far from being achieved.

Ghana has borrowed heavy quantum of funds for agric mechanizations, irrigations, drainages desilting in Accra region and many more and yet we keep facing similar if not worsened conditions in the very scopes the loans were procured to solve.  We have all witnessed what debt distress had done to Greece, Argentina, Portugal, Sri Lanka and Ireland and the economic difficulties on their citizens. The repercussions affect every citizen save the politicians who are financially buffered.

We need a forward guidance on our loans procurement, loan management and general loans overview. If not, we will continue going for loans and yet be far from the original intent and purpose of the loans. The president needs a non paying voluntary taskforce of experts to sample key loans contracted from 1992 and query the following

  • What were the purposes of the loans?
  • What are the variances between the loans objective and what was actually accomplished?
  • What shortcomings, challenges were encountered that stifled the loan purpose achievements?
  • Finally advise government and Legislature on parameters and other factors to consider to make our procured loans more productive for the nation.
  • Any lessons for future project executions and fund disbursements

Below are Samples of loans hanging around our neck with questionable fulfillment of Loan Objectives

Komenda Sugar Factory Basic credit/project questions that arises are?

Why were the project objectives not achieved?

Why 100% project fund were disbursed with project completion rate below 50%?

Does Ghana as a nation then additionally contracts more loans to complete the projects? Or the stakeholders such as contractors, consultants held accountable for project completion?


Accra –Kumasi Road

Its been 16 good years with project ongoing. Questions arise such as?

1 Did the 2004 project agreement and its attendant funds not cover the current ongoing project scopes?

2 Similar ones like George Bush Highway managed by USA through MiDA got completed on time. JICA funded roads too have similar execution success like GW Bush highway.

3 I might be comparing apples and oranges (as to GW Bush highway and Accra-Kumasi Road) but I stand to be corrected on the subsequent question? Why usually in significant cases foreign managed projects with ring fenced funds are successfully executed whiles ring fenced funded projects managed locally have mixed successes?



Kumasi Shoe Factory
Sagalemi Housing Project (50% completion rate with 100 % loan funds disbursed)
200 E Block Sec/HighSchool (63 completed with over significant loan portion released already.)
Accra Kumasi Road (2004 to date)


Our intuitions are already weak. Constant and frequent politicization is destroying them. NPP NDC political adversarial attitudes across the country are ruining careers, livelihood and friendships across numerous institutions. Let’s depoliticize institutions as it retrogresses the country.

Every time government changes its so terrible. From messengers to drivers and highly skilled personnel are all dumped for new party sympathizers’. We easily forget that during the 8 or so years of the previous governments these skilled personnel are intellectual cupboards where high level training, seminars etc. have been provided to them for the nations capacity building and development. We then start midway all over again. The nation has lost numerous unknown and unnumbered talents due to these issue of institutional politicization.

Kwamina  is an experienced financial and credit analyst with over 10 years in advanced commercial lending and bankside experience

[email protected]

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