Ghana, China sign $30 million grant agreement for university in Damongo
Ghana and China have signed a $30 million grant agreement to support the construction of a university in Damongo, the Savannah Regional capital.
The agreement was signed yesterday during a meeting between the Minister of Finance, Dr Cassiel Ato Forson, and the outgoing Chinese Ambassador to Ghana, Tong Defa.
Stronger bilateral relations
Dr Forson expressed appreciation to the Ambassador on behalf of President John Dramani Mahama and the people of Ghana, acknowledging his role in “strengthening bilateral relations between the two countries”.
The Finance Minister stated that although Ambassador Tong’s tenure was brief, it coincided with the conclusion of two significant grant agreements for Ghana: funding for a multipurpose market in Aflao and the US$30 million grant for the construction of the university in Damongo.
He further highlighted the broader contribution of Chinese support and investment to Ghana’s economy, reaffirming that Ghana deeply values its longstanding relationship with China, “which dates back to the era of President Kwame Nkrumah and Chairman Mao”.
Dr Forson underscored the need to deepen economic cooperation by “reducing exchange losses associated with bilateral trade”.
He indicated Ghana’s interest in exploring trade settlements in the Ghanaian cedi and the Chinese currency (RMB), adding that reliance on third-party currencies was inefficient when trade was conducted directly between Ghana and China.
He assured the outgoing ambassador that “these discussions would be pursued at the policy level, including engagement with the Bank of Ghana”.
Cooperation
Ambassador Tong expressed gratitude to the Finance Minister for the cooperation and support during his tour of duty and congratulated Dr Forson on “Ghana’s improving economic performance”.
He stated his pride in the state of Ghana–China relations and noted his “encouragement by the tangible outcomes achieved within a short period, particularly in the area of development cooperation”.
Background
During a meeting with the Catholic Archbishop of Tamale, Most Reverend Philip Naameh, at the Presidency, President Mahama announced that Damongo, the Savannah regional capital, would host two major projects: a Catholic Science and Technology University and a regional hospital that will serve as a teaching facility.
The President stated that the initial funding for the proposed university would come from the grant promised by the Chinese President.
The regional hospital, he explained, would also serve as a teaching facility for the proposed Catholic Science and Technology University, which would have a Faculty of Medical Sciences to train medical doctors and other allied health professionals.
