Daniel Krull, the German ambassador to Ghana, has urged the government of Ghana to take a reduction in spending into consideration while it continues to ask creditors for debt forgiveness.

The Ambassador emphasised that Ghana cannot request relief from its external debt while refusing to reduce its spending when speaking at a press conference on Friday, February 24, 2023.

Naturally, it greatly relies on the type of expenses you're considering.This is true, I'm sure of it—looking at the German Foreign Ministry's budget, I can see crucial responsibilities that might be eliminated without harming the country's economic growth.

“And I’m convinced without going into details this also is true for Ghana. There are certain expenditures that can be lowered substantially and make an important impact and it has to be part of the package.

“I mean, I cannot go out to the international community and say I need help, but I’m not willing to cut my own budget expenditures. I have to be careful not to cut the social expenditures that are destroying lives and families. I have to be very careful not to take measures that might negatively impact economic growth.

“But I’m convinced there are many expenditures that could be looked at very carefully and can be lowered substantially,” he said.

Comparing Ghana’s situation to some countries including Germany, Mr Krull further called for a reduction in the size of Ghana’s government.

“I only can compare and with other countries like my own and I can just come to the conclusion that the number is much higher than in my country. So that might bring me to the conclusion that maybe there’s room for improvement,” he said.

He added that “Ghana has a very dense layer of institutions and responsibilities all over the country.”

Ghana is currently seeking external debt relief from its creditors amidst the country’s current economic hardship.

The government of Ghana is calling for the support of some countries including Germany to persuade one of the country’s major creditor, China, for a debt relief.

With Ghana owing China some $1.7 billion, the government is hoping the debt relief would help the country meet conditions for an IMF bailout.