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Former President Kufuor explains why he took Ghana to HIPC
Ghana in 2001 under the presidency of John Agyekum Kufuor, was declared a Heavily Indebted Poor Country, HIPC, by the World Bank.
According to the President, creditors were not looking at Ghana because of the debt his predecessor had left behind so, there was no benefit and the macro-economy was in “shambles”.
This is because the previous government had preached a very ‘bloomsome’ picture to depict that all was well, so, Ghana was too proud to admit its indebtedness.
President Kufuor told KSM on ‘The KSM’ show that prior to winning the 2000 election, his government had promised to do a lot for Ghana to grow economically but things were different when he was sworn in on January 7, 2001.
“Through the campaign of becoming President, we had promised a lot. We talked about going to usher in the golden age of business, and what we will do to turn around the economy etc; we go in there and found empty coffers; not just empty coffers, piles and piles of loans, indebtedness. The nation was practically insolvent. Even the fuel stations had long queues of vehicles because there was no petrol to sell.
“Nigeria had blacklisted Ghana because Ghana owed them some supplies; so, they cut us off. We had to rush to Nigeria and beg the president of Nigeria, Olusegun Obasanjo. This was a state thing and I had to get my government and economy working.
“I went there to plead. At the presidency, Obasanjo had assembled his entire cabinet and asked me why I am in their country, so, I told him that I am here to plead so that you restore supplies to Ghana. The place was quiet, the President raised his head back and said, ‘well, our policy is not to continue supplying people who do not pay, so that is why we are not supplying Ghana’.
“I told him that mine was a new government and we needed to have a fresh start and I assured them that when they supply, my government will do everything with its power to pay. Then Obasanjo said, I had to give a written undertaken that when they supply Ghana I will pay. Something hit me at that point, I sensed the mood was softening a bit so I said Mr President if that is the only thing you want, then please give me pen and paper to write to you that when you supply us, we will pay. He burst into laughter; he then said he will give Ghana 30,000 barrels of crude a day for 90 days on credit…true to his word, for the entire eight-year period of my government, the suppliers came [constantly],” President Kufuor said.
He recounted an international conference in Bamako, the capital of Mali, where he had attended on an invitation and met so many dignitaries including the Director of IMF, President of the World Bank and the Secretary of State for International Development of the UK, Clair Short.
President Kufuor said, during the break, he was “cornered” by these dignitaries and somehow, they wanted to get his thoughts on so many issues especially, the policies he had come to power with because he was a new “boy” on the bloc.
He noted that it took the lady, Clair Short to tell me that “look, everybody knows the state of Ghana’s economy, if you tell the truth about the economy then you will get the help you want [because] we know that you are HIPC so, if you will avail yourself to an IMF programme, then you may get the reliefs you want.
“So, that registered with me; the IMF Director then said, if I take the step, he will work with us so, that we come out of the indebtedness. The previous regime had got us there but pride could not make us admit that we are indebted and because of that inflation was over 40%…the cedi against the dollar was high…so, it was impossible for us to move with all the plans we came to office with…
“These three people wanted me to consider that the situation was messy, so, I should own up. I came back to Ghana, assembled my team and told them that nobody want to hear HIPC so, we should find an alternative to HIPC but nothing clicked…I tasked the Finance Minister to go and inform Parliament that we have decided to go to HIPC…truly Britain was the first country to give us a relief of 50 million pounds to service our loans; other countries followed,” he stressed.
President Kufuor noted that he felt fulfilled to have attended the Mali conference which became of great help to Ghana.
He said when Ghana’s debt was cancelled, he decided to write on projects that he constructed after the ‘benefit of HIPC’ – something Ghanaians mocked him for.
The Global Network of Export-Import Banks and Development Finance Institutions (G-NEXID) successfully held its sixth (6th) Exchange Programme, hosted by the Ghana Export – Import Bank (GEXIM) Bank in Accra from March 22 to 23 March.
The event brought together member institutions, partner organisations and Ghanaian public entities to advance dialogue on South-South trade, investment and development finance, while also creating opportunities for knowledge-sharing and institutional cooperation.
Organised as a capacity-building and networking platform, the 2026 edition of the G-NEXID Exchange focused on GEXIM’s experience in developing innovative solutions to promote intra-African and extra-African trade.
It also highlighted trade and investment opportunities in Ghana, particularly in the context of the African Continental Free Trade Area (AfCFTA) and broader national development initiatives.
The Exchange Programme forms part of G-NEXID’s mandate to foster cooperation among export-import banks and development finance institutions in support of South-South trade and investment.
This 6th edition follows earlier successful programmes hosted by India Exim Bank (2016), BNDES (2017), Indonesia Eximbank (2018), Afreximbank (2019) and Saudi EXIM Bank (2025).
On the first day, participants were presented with G-NEXID institutional information and received an update on the Network’s 2026 work programme.
There were a series of substantive presentations, including an overview of the Ghanaian economy by the Ministry of Finance, with particular attention to debt-related challenges; a presentation by the Ghana Investment Promotion Centre (GIPC), on investment opportunities in the country; and institutional presentations by GEXIM and Development Bank Ghana (DBG) on their respective mandates, initiatives, products and services.
Discussions during the sessions underscored strong interest in sector-focused webinars and business dialogues, particularly in agribusiness value chains such as poultry and rice.
Participants also emphasized the importance of continued information exchange and the sharing of best practices, especially in the area of guarantees.
The second day opened with a presentation on the 24-Hour Economy and Accelerated Export Development Programme, a national economic transformation strategy launched by President John Dramani Mahama in July 2025.
The initiative aims to enhance economic productivity through continuous industrial activity, accelerated export development and strategic import substitution.
As the programme is expected to mobilise both private and development capital, it presents concrete opportunities for G-NEXID members in areas such as co-financing, guarantees, trade finance and technical cooperation.
The programme also featured institutional presentations by guest organisations, namely the African Guarantee and Economic Cooperation Fund (FAGACE) and the West African Development Bank (BOAD), which shared their mandates, initiatives, products and services.
Following these exchanges, the G-NEXID Secretariat held bilateral discussions with both institutions as part of the Network’s ongoing membership drive.
Participants further benefited from a presentation by the Eastern and Southern African Trade and Development Bank (TDB), as well as a showcase of GEXIM’s key pipeline projects.
On the margins of the Exchange Programme, G-NEXID members also held their 20th Annual General Assembly Meeting to review progress and discuss strategic priorities.
Following the event, participants joined the GEXIM@10 International Conference, held from March 24-25, 2026 under the theme, “A Decade of Enabling Export Trade and Industrial Transformation: Resetting GEXIM for the Next Frontier.”
The conference provided an important platform for exploring how Ghana can strengthen its transition from a primary commodity exporter to a more competitive player in value-added trade and industrial development.
Source – G-NEXID
President John Dramani Mahama on Tuesday, March 31, 2026, signed five bills including three amendment bills passed by Parliament into law.
They are: Security and Intelligence Agencies Bill, 2025; University of Engineering and Agricultural Sciences Bill, 2025; Ghana Deposit Protection (Amendment) Bill, 2025; Growth and Sustainability Levy (Amendment) Bill, 2026; and Education Regulatory Bodies (Amendment) Bill, 2026.
In a brief remark after assenting to the bills, President Mahama explained that the Security and Intelligence Agencies Act, 2026, scraps the Office of Minister of National Security and frees the President’s to appoint any Minister to supervise the security agencies.
He said it also reverses the name of the office of National Intelligence Bureau (NIB), to the original name, Bureau of National Intelligence, (BNI).
This the President said, addresses the confusion between that security agency and a well-known Ghanaian financial institution, the National Investment Bank.
President Mahama also noted that the University of Engineering and Agricultural Sciences Act, 2026, establishes another University in the Eastern Region, at Bonsu, with three campuses – the main campus at Bonsu in the Eastern Region, with the second campus to be cited at Ohawu in the Oti Region.
The third, the Presdient assed will be located at Acherensua in the Ahafo Region.
Touching on the Amendment to the Growth and Sustainability Levy Act, the President said, “As you’re aware, the act was amended to increase it from 1% to 3%, and so this act reduces it again. That is the levy on mining companies. It reduces it again to 1%, because of the introduction of the sliding scale of royalties.”
He also spoke to the passage of the Government Education Regulatory Bodies Amendment Act, emphasising that amends Act 1023 to grant greater flexibility to private tertiary institutions and the option to Charter.
The Ghana Deposit Protection Amendment Act, the President concluded, is an amendment to an original act that was supposed to guarantee deposits held in commercial banks or financial institutions.
It basically expands protection to include mobile money wallets and other digital platforms, ensuring a wider scope of digital financial assets are secured.
The signing ceremony, was witnessed by the Clerk of Parliament, Mr. Ebenezer Ahumah Djietror, Secretary to the President, Dr Callistus Mahama, the Minister of Justice and Attorney General, Dr Dominic Akrutinga Ayine, Chief of Staff, Julius Debrah, Joyce Bawa Mogtari, a Senior Presidential Advisor and a Special Aide to the President, Finance Minister, Dr Cassiel Ato Baah Forson, and the Vice President, Professor Jane Naana Opoku Agyemang.
