Ghana would be the first nation in Africa to sell debt worth $2 billion to fund development programs since the first social bonds was launched by Social Finance Ltd, a UK-based company, over a decade ago.
The second most peaceful country in the continent according to Global Peace Index Report 2021 is planning to issue the social bonds by November.
In July 2019, about 132 social bonds were launched in 25 countries across the world which worth more than $420 million.
And in July 2021, Ghana has joined the league in a very big way only to pay for success.
Also, Ghana is equally planning to collect $5 billion loan on international markets this year.
HOW GHANA PLANS TO USE THE BONDS
According to Ghanaian Finance Minister Ken Ofori-Atta, the country intends to use the proceeds from the bonds to refinance debt used for social and environmental projects as well as to pay for education or health. The projects on education include
a free secondary-school initiative that started in 2017.
At the end of the day, “our actual new debt will be $1.5 billion,” the Finance Minister said.
He added that sustainable bonds “are not cheap, there is no discount…We will seek to negotiate for the best terms though.”
By Elijah Christopher
Elijah Christopher is a journalist at A New Touch Of Africa, is also a creative writer, a poet, and an IT enthusiast. He contributed to the collaborative poem written in celebration of Edwin Morgan Centenary, the first Glasgow poet laureate and Scottish national poet from the University of Glasgow. He loves meeting people and learning about new places, cultures, events, and lifestyles.