Ghana, China sign US$30m deal for University project in Damongo

Ghana and China have signed a US$30 million grant agreement to support the construction of a university in Damongo, a move expected to significantly expand access to higher education in the Savannah Region.

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

Dr Forson expressed appreciation to the Ambassador on behalf of President John Dramani Mahama and the people of Ghana, commending his role in strengthening cooperation between Accra and Beijing.

He noted that although Ambassador Tong’s tenure in Ghana was relatively brief, it coincided with the conclusion of two major grant agreements, that is, funding for a multipurpose market in Aflao and the US$30 million grant for the Damongo university project.

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According to the Finance Minister, the new university is expected to play a key role in expanding educational opportunities in northern Ghana and driving regional development.

Dr Forson also highlighted the broader contribution of Chinese investment and development support to Ghana’s economy, reaffirming that Ghana deeply values its relationship with China, which dates back to the era of President Kwame Nkrumah and Chairman Mao.

Looking ahead, the Minister highlighted the need to deepen economic cooperation between the two countries, particularly in the area of trade.

He noted that Ghana is exploring the possibility of settling bilateral trade in the Ghanaian cedi and the Chinese renminbi (RMB) in order to reduce exchange losses associated with reliance on third-party currencies.

He assured the outgoing Ambassador that discussions on this proposal would be pursued at the policy level, including engagement with the Bank of Ghana, as part of broader efforts to improve efficiency in Ghana–China trade relations.

Ambassador Tong expressed gratitude to the Finance Minister and the Government of Ghana for the cooperation and support he received during his tour of duty.

He congratulated Dr Forson on Ghana’s improving economic performance and said he was proud of the state of Ghana–China relations.

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The Ambassador noted that he was encouraged by the tangible outcomes achieved within a short period, particularly in the area of development cooperation, with the Damongo university project standing out as a major achievement.

The US$30 million grant adds to China’s longstanding support for Ghana’s development, which has spanned key sectors including education, infrastructure, health and trade.

When completed, the Damongo university is expected to become a major educational hub in the Savannah Region, contributing to human capital development and reinforcing Ghana’s commitment to expanding access to tertiary education nationwide.