Germany’s Deutsche Bank has emerged as Ghana’s largest external creditor, surpassing both China and the World Bank. Contrary to common belief, which holds China or the World Bank as Ghana’s primary lenders, new data shows that Deutsche Bank currently tops the list, extending loans worth approximately $3.5 billion to Ghana. This financing has primarily supported crucial infrastructure projects like the New Kejetia Market and the Western Railway Line.

China, previously seen as a dominant creditor, has lent around $1.7 billion to Ghana, while the World Bank’s contribution stands at $1.7 billion as well. Both lag behind Deutsche Bank’s extensive financial commitments.

These loans, while essential for building the country’s infrastructure, raise concerns regarding their sustainability. Inefficient management of these projects, combined with Ghana’s increasing debt load, puts the country’s financial health at risk. For instance, while the Kejetia Market redevelopment was expected to transform business spaces for thousands of traders, issues such as poor utility management and fire outbreaks have hindered its profitability. Similarly, the Western Railway Line’s effectiveness remains questionable without supporting infrastructure from other financiers.

Ghana’s reliance on private financing, such as that provided by Deutsche Bank, reflects a broader trend where private investment increasingly fills the gap left by traditional development aid. With Ghana needing over $45 billion to meet its infrastructure demands by 2040, the government has had to look beyond typical multilateral lenders, shifting focus to players like Deutsche Bank.

However, the country’s ability to manage these loans efficiently is vital if it hopes to maintain the confidence of international financiers. Missteps in project execution may dampen future funding prospects, leaving Ghana to grapple with higher costs and a challenging debt landscape.