Ghanaian government to establish infra fund

Ghana is to set up a new infrastructure fund to deal with the huge infrastructure deficit in the country.

Minister for Finance, Seth Terkper, stated the government will set up a Ghana Infrastructure Fund (GIF) to focus on strategic infrastructure in partnership with the private sector both locally and international.

"The GIF is a response to the need to manage Ghana‘s limited but potentially expanding fiscal space; sub-optimal classification and management of public debt; and difficulties in mobilising funds, in particular for infrastructure projects of a commercial nature," he said.

Conservative estimates by the Ghanaian government indicate that the country requires sustained spending of at least $1.5bn a year over the next 10 years to address the shortfall.

Terkper said the board of the GIF would advise the minister on viable projects to be financed, including those involving special purpose vehicles such as joint ventures and PPP projects.

He stated that the intention of government is to consolidate the use of such commercial financing facilities to finance projects that could repay commercial loans that the government contracts directly.