Ghana and the People’s Republic of China have taken a further step in strengthening development cooperation with the signing of a US$30 million grant agreement to finance the construction of a new university in Damongo, in the Savannah Region.
The agreement was concluded at a meeting between the Minister for Finance, Dr. Cassiel Ato Forson, and Ghana’s outgoing Chinese Ambassador, Tong Defa. The project is expected to expand access to higher education in northern Ghana and support regional development through skills training and research.
Government Commends China’s Support
Dr. Forson, speaking on behalf of President John Dramani Mahama and the people of Ghana, expressed gratitude to Ambassador Tong for his contribution to deepening bilateral relations between the two countries.
He noted that although the Ambassador’s tenure in Ghana was relatively short, it coincided with the successful conclusion of two major grant-funded projects:
• a multipurpose market in Aflao, and
• the US$30 million grant for the Damongo university project.
According to the Finance Minister, these initiatives reflect China’s continued support for Ghana’s infrastructure, education, and local economic development efforts.
Longstanding Bilateral Relations
Dr. Forson highlighted the historical depth of Ghana–China relations, recalling that diplomatic ties date back to the era of Ghana’s first President, Dr. Kwame Nkrumah, and Chairman Mao Zedong. He reaffirmed Ghana’s commitment to maintaining and expanding the partnership, particularly in trade, investment, and development financing.
Call for Trade and Currency Reforms
Beyond infrastructure cooperation, the Finance Minister raised concerns about exchange rate losses arising from the use of third-party currencies in Ghana–China trade. He said Ghana is interested in exploring direct trade settlements using the Ghanaian cedi and the Chinese renminbi (RMB).
Dr. Forson described such an arrangement as more efficient and cost-effective, adding that the proposal would be pursued further at the policy level, including consultations with the Bank of Ghana.
Ambassador Hails Progress
Ambassador Tong Defa thanked the Finance Ministry for its cooperation during his tour of duty and congratulated Dr. Forson on what he described as Ghana’s improving economic performance.
He expressed satisfaction with the current state of Ghana–China relations, noting that despite his short stay, the two countries achieved “tangible outcomes,” particularly in development cooperation and grant-supported projects.
The Damongo university project is expected to play a strategic role in boosting higher education opportunities and supporting socio-economic growth in the Savannah Region once construction begins.
Source: Africa Publicity
