Ghana, China seal US$30m grant for Damongo University project

Ghana and China have signed a US$30 million grant agreement to support the construction of a new public university in Damongo.

The agreement was reached during a meeting between the Minister for Finance, Dr Cassiel Ato Forson, and the outgoing Chinese Ambassador to Ghana, H.E. Tong Defa, marking another milestone in the long-standing bilateral relations between the two countries.

Dr Forson conveyed the appreciation of President John Dramani Mahama and the people of Ghana to the Chinese government for its continued support.

He acknowledged the role played by Ambassador Tong in strengthening cooperation between Accra and Beijing during his relatively short stay in the country.

According to the Finance Minister, Ambassador Tong’s tenure coincided with the finalisation of two major grant agreements that are expected to have a significant development impact. These include funding support for a multipurpose market project in Aflao and the US$30 million grant dedicated to the construction of the Damongo University.

The Damongo University project is expected to expand access to tertiary education, particularly in the Savannah Region, and support government efforts to promote balanced regional development. Officials believe the facility will also help address capacity challenges in Ghana’s higher education sector while creating new opportunities for research, innovation, and skills development.

Dr Forson highlighted the broader contribution of Chinese investment and development cooperation to Ghana’s economy, noting that China remains one of Ghana’s key economic partners. He traced the roots of the relationship to the early years of Ghana’s independence, when ties were established under President Kwame Nkrumah and Chairman Mao Zedong.

Beyond infrastructure and grant support, the Finance Minister pointed to the need to strengthen economic cooperation through more efficient trade arrangements.

He raised concerns about exchange rate losses arising from bilateral trade transactions that rely on third-party currencies, despite Ghana and China trading directly with each other.

As part of efforts to address this challenge, Dr Forson indicated Ghana’s interest in exploring the possibility of settling trade transactions in the Ghanaian cedi and the Chinese renminbi.

He explained that such an arrangement could reduce transaction costs, minimise exchange losses and improve overall trade efficiency between the two economies.

He assured the outgoing Ambassador that these proposals would be examined further at the policy level, with discussions expected to involve key institutions such as the Bank of Ghana.

Ambassador Tong, on his part, expressed appreciation for the cooperation and support he received from Ghanaian authorities throughout his assignment.

He also congratulated the Finance Minister on recent improvements in Ghana’s economic indicators and noted his satisfaction with the tangible outcomes achieved within a short period.

The Ambassador described the current state of Ghana–China relations as strong and productive, adding that recent grant agreements demonstrate the depth of development cooperation between the two countries and the shared commitment to long-term partnership.