Italy Converts 70% of Ghana’s Debt to Grants.
Government of Italy has converted nearly 70% of its concessional loans to Ghana into grants.
Damian Owusu 
In a striking demonstration of bilateral goodwill, the Government of Italy has converted nearly 70% of its concessional loans to Ghana into grants. This move, announced during a high-level meeting between Italian Ambassador Laura Ranalli and the Ghanaian presidency, comes as a significant relief to a country navigating economic recovery and fiscal consolidation.
The conversion effectively cancels a sizable portion of Ghana’s debt obligations to Italy, freeing up financial space for priority investments. Ambassador Ranalli described the gesture as a reaffirmation of Italy’s long-term commitment to Ghana’s development, adding that “this is not just financial relief—it’s a new chapter of partnership.”
This policy shift is emblematic of a broader strategy where creditor nations use debt forgiveness to deepen cooperation in sectors such as health, education, and agriculture. In Ghana’s case, Italy is also committing €77 million to new health and agro-industrial projects in the Volta Region.
Beyond economics, the debt-to-grant conversion also carries diplomatic significance. President Sergio Mattarella has extended an invitation to Ghana to participate in the upcoming Aqaba Process Forum in Rome—a high-level platform focused on counter-terrorism and regional stability. This inclusion positions Ghana as a key African partner in global security dialogues.
This development eases some pressure on Ghana’s debt servicing requirements and could bolster its creditworthiness in future negotiations with international lenders. With the IMF-backed Extended Credit Facility already underway, such bilateral arrangements enhance Ghana’s fiscal maneuverability and restore investor confidence.
