Ghana is advancing plans to develop critical energy and transportation infrastructure through renewed collaboration with China, following high-level talks between Finance Minister Cassiel Ato Forson and Chinese Ambassador Tong Defa on April 4, 2025.
The discussions centered on accelerating projects seen as pivotal to Ghana’s economic ambitions, including a second gas processing plant and the long-delayed Accra-Kumasi Expressway.
Forson highlighted China’s role in completing the Atuabo Gas Processing Plant during his tenure as deputy finance minister a decade ago, framing the proposed new facility as essential for scaling domestic energy capacity. “Having partnered with China to deliver Atuabo, it is time to replicate that success,” he said. The minister also emphasized near-term priorities, noting that “most Chinese-funded projects in Ghana are nearing completion,” with new agreements expected after mid-year budget approvals.
The talks extended to Ghana’s ongoing debt restructuring process, with Forson seeking Beijing’s support to finalize terms with bilateral creditors. A successful resolution is viewed as critical to unlocking fiscal space for infrastructure investments. Ambassador Tong reaffirmed China’s commitment, stating bilateral agreements are “ready to be signed,” though specifics on funding mechanisms or loan terms were not disclosed.
Among the projects under discussion, the 400-kilometer Accra-Kumasi Expressway—a flagship initiative of former President Nana Akufo-Addo’s administration—has gained renewed momentum. Designed to connect Ghana’s political and commercial hubs, the highway has faced repeated delays due to financing gaps and land acquisition disputes since its proposal in 2019.
Ghana’s infrastructure push comes amid efforts to stabilize an economy recovering from its worst debt crisis in decades. Chinese financing has been a cornerstone of the country’s development strategy, funding projects ranging from the $600 million Western Corridor gas pipeline to the controversial $2 billion Sinohydro bauxite-for-infrastructure swap. However, critics caution that reliance on Chinese loans risks exacerbating debt vulnerabilities, citing the $4.7 billion owed to Chinese creditors as of 2024.
The renewed partnership underscores Ghana’s delicate balancing act: leveraging foreign investment to close infrastructure deficits while avoiding unsustainable liabilities. With China accounting for 12% of Africa’s external infrastructure funding in 2024, Ghana’s approach mirrors regional trends. Yet analysts note that transparency concerns and currency risks persist, particularly for projects tied to resource-backed loans.
Historically, Ghana has navigated these challenges through renegotiations, as seen in its 2023 restructuring of $1.7 billion in Chinese power sector debt. Whether the latest infrastructure drive can avoid past pitfalls may hinge on aligning project timelines with fiscal capacity—a test for both Accra’s planners and their international partners. As global competition for critical minerals intensifies, Ghana’s ability to convert infrastructure investments into broad-based growth could shape its trajectory for decades.
