The facility will be channelled into infrastructure development, according to the agreement ratified by parliament and signed in China during President Nana Akufo-Addo's state visit to Beijing.
The Australian High Commissioner to Ghana Andrew Banes is warning against "endless loans," following the signing of a $2 billion barter trade agreement between Ghana and Synohydro group of China.
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The facility will be channelled into infrastructure development, according to the agreement ratified by parliament and signed in China during President Nana Akufo-Addo's state visit to Beijing.
Commenting on the deal and Ghana's growing ties with China, the High Commissioner called for transparency in the disbursement of the funds while decrying "endless" borrowing.
“I can’t stress enough that there’s got to be transparency and there’s got to be a free and fair tendering process for contracts in foreign investments,” Mr. Barnes said.
He continued: “You can’t keep taking endless loans for projects, but if there is transparency in the process, the economics of what are essentially business deals will be apparent, and if it is a properly managed business venture, the investment should pay itself back, and the debt should be able to be serviced.”
“It becomes a problem if the investment is not done on a commercial basis and does not add up and then Ghana is left with businesses that fail, that are not providing a return on the investments, and Ghana is left with a large debt without any ability to service.”
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The Australian High Commissioner also added that “as long as the investments are worthwhile and will lay the benefits for future prosperity and developments and growth, well then the investment is a good thing.”