Ghana could have gotten better Eurobond deal - AfDB Boss

President of the the African Development Bank  has revealed that his financial institution  could have given Ghana a better deal on the Ghana's  last Eurobond issue.

In an interview with Graphic the president addressed Ghana's September Eurobond issue, Dr. Akinwumi Adesin said

He added "

The government of Ghana was  on the Eurobond capital market in September to raise a total of $1.5 billion. This was to retire maturing debt and restructure other short term debt.

The finance minister expectation of an interest rate of 9 % notwithstanding, foreign investors want to part away with their money to Ghana only at a rate of 11 percent. Subsequent negotiations saw Ghana settle for a 10.75 percent interest and a total sum of $1 billion dollars.

The AFDB president however mentioned that arrangements are far advanced for Ghana to get access to relatively cheaper credit from the Bank.

However, Ghana is just at the preparatory stage of being certified to be able to borrow from the AfDB window.

"So, its a timing issue but going forward, once the criteria for qualification is met, Ghana would be able to borrow from that facility and at much more lower rates than the current situation.

But you know, if you have a patient and you have to first prevent a cardiac arrest, even if it is going to stabilise the situation, then you can expect these."

That not said, I think the right things are being done to solve the issue and I'm sure Ghana will come out of it.

He expressed optimism that Ghana will meet the criteria for financing.

Meanwhile, in an earlier interview with Graphic Business, Dr. Akinwumi Adesin then waded into discussions about  Ghana's current energy crisis and how the AfDB is going to help.

I think there are a number of things that need to be focused on.

First, is the issue of energy and I am happy that the President is focusing a lot on that.

All the investments made in the energy sector should allow Ghana to have about 4,000 megawatts (MW) of power in the next few years. With that Ghana would have more than it needs, given its average consumption of about 2,000 MW. That means there will be an average of 2,000 MW that can be sold.

So, the AfDB is going to be helping with others to create what we can from the West Africa Power Exchange so that Ghana's excess can be sold to neighbours.

The second concern was on the economy.

The AfDB boss then further revealed exactly how much the Bank is planning to invest into the energy sector in Ghana.