A member of the Parliament's Finance Committee, Isaac Adongo, has advocated for a legal framework to govern Ghana's domestic and external borrowing, as well as the utilization of such funds by governments.

Highlighting the necessity of prudent borrowing practices to address Ghana's financing gap, Mr Adongo stressed the need for clear policies and regulations to guide borrowing activities towards sustainable forex generation.

“We must have a regime that allows us to be very prudent in our borrowing; there must be a clear signal, policy intervention and a legal regulation that compels countries, such as Ghana, when they borrow, to put it into areas that we can generate the forex sustainably,” he said.

This call for regulation follows Ghana's debt restructuring under a US$3 billion loan-support program with the IMF, aimed at ensuring debt sustainability, economic recovery, and stability.

Mr Adongo, representing Bolgatanga Central in the Upper East Region, emphasized the importance of directing borrowed funds towards productive sectors of the economy through a legal framework.

He underscores the significance of positive loan investments to avoid unsustainable debt situations, necessitating loan-support programs and austerity measures.

Speaking at a conference on Africa's debt crisis and financial architecture reform, Adongo proposes a legally binding mechanism to regulate debt levels and enforce compliance with established limits.

Moreover, he advocates for strategic investment of borrowed funds to enhance Ghana's debt-carrying capacity and facilitate debt servicing.

Mr Adongo called for prudent management of Ghana's abundant mineral resources, emphasizing the need to add value to key exports like cocoa, gold, and bauxite.

He emphasized the importance of political will in implementing measures to effectively manage resources and generate revenue to support sustainable development initiatives.

“Beyond that, [we must] look at where to invest the money in order to improve the debt carrying capacity of our country and be able to service our debts.

“You can’t go on the international capital market to borrow, knowing that your biggest problem is how to generate the forex, and you borrow for five years, and all that you do is to put it in the payment of salaries and goods and services,” he noted.

“We must be prudent in the way we manage our resources; it’s doable. It’s about having the political will to do it. We must build growth poles and generate the kind of resources that will allow us to pay for it,” he stated.