Consulting Engineers Urge Ghana to Shift Away from Dollar Loans for Infrastructure Financing

The Ghana Consulting Engineers Association has called on the government to reduce its dependence on foreign currency borrowing for infrastructure development and instead focus on raising funds through long-term bonds issued in local currency.

According to the association, financing infrastructure projects with cedi-denominated bonds would provide Ghana with a more reliable and sustainable source of funding while limiting the country’s exposure to exchange rate fluctuations.

Speaking at the FIDIC Africa 2026 Infrastructure Conference in Accra, the association’s president, Kwabena Bempong, warned that Ghana’s continued reliance on dollar-based loans increases repayment challenges whenever the cedi depreciates.

He explained that borrowing in foreign currency carries substantial risks because any weakening of the local currency makes debt repayment more expensive.

According to Ing. Bempong, many infrastructure projects undertaken in the past were funded through external loans, which exposed the country to rising debt servicing costs during periods of currency instability.

He therefore encouraged the government to adopt more sustainable domestic financing methods by introducing long-term local currency bonds specifically targeted at infrastructure development.

He stressed that infrastructure projects require long-term funding commitments and are not suitable for short-term borrowing instruments such as Treasury bills.

Ing. Bempong noted that projects in the infrastructure sector often take years to complete, making long-term government bonds a more appropriate financing tool.

He added that increasing the use of cedi-based infrastructure financing could help minimise exchange rate risks while ensuring more dependable funding for national development initiatives.

The association also believes that expanding infrastructure bond financing in local currency could strengthen Ghana’s domestic capital market and create additional investment opportunities for pension funds, institutional investors, and local asset managers.

The recommendation comes at a time when Ghana is working to expand infrastructure development while also maintaining debt sustainability and fiscal discipline following recent economic reforms.

SOURCE: CITINEWSROOM