In a significant display of support for Ghana’s economic recovery and long-term growth, Italy has converted nearly 70% of its concessional loans to the country into grants.
This gesture is expected to provide a substantial boost to the local economy by wiping off 70% of Ghana’s indebtedness to Italy, ultimately reducing the national debt portfolio.
The Italian Ambassador to Ghana, Laura Ranalli, made this announcement during a courtesy call on the Presidency.
She emphasized that the move demonstrates Italy’s commitment to supporting Ghana’s economic stability and growth. The debt conversion is a testament to the strong economic ties between the two countries, with Italy recognizing Ghana’s economic challenges and seeking to alleviate the country’s debt burden.
By converting loans to grants, Italy is providing Ghana with much-needed fiscal space to allocate resources towards development projects. This move is expected to have a positive impact on Ghana’s economy, enabling the country to redirect resources towards critical sectors such as infrastructure, agriculture, and energy.
Ambassador Ranalli also highlighted significant Italian investments in Ghana’s health sector, citing an agro-industrial company operating in the Volta Region that has committed over €77 million to healthcare and related initiatives. This investment demonstrates Italy’s commitment to supporting Ghana’s development goals and improving the lives of its citizens.
The Italian Ambassador further emphasized the importance of Ghana’s participation in international forums, such as the Aqaba Process, which aims to address regional threats and foster international cooperation on peace and security in West Africa. Ghana’s involvement in such initiatives is seen as crucial in promoting regional stability and cooperation.
As part of the visit, Ambassador Ranalli presented a special invitation from the President of Italy, Sergio Mattarella, to President John Dramani Mahama to participate in the upcoming Aqaba Process Forum in Rome from July 22-24, 2025. The forum provides a platform for international leaders to discuss pressing regional issues and develop strategies to address them.
The debt conversion agreement between Italy and Ghana is a significant step towards strengthening economic cooperation between the two countries.
By alleviating Ghana’s debt burden, Italy is providing the country with an opportunity to redirect resources towards development projects, ultimately contributing to Ghana’s economic recovery and long-term growth .
