Australian High Commissioner, Andrew Barnes is advising Ghana to ensure loans secured from China are used for projects and programmes that generate revenue to pay them back.

Otherwise, the country risks being drowned in perpetual debt, almost impossible to come out of and one which will span generations.

Responding to a question about Ghana and China's recent increase in trade and how the Australians hope to get involved, Andrew Barnes, explained that what's important is for Ghana to engage in proper transparent deals that's in their interest.

Ghana and many other African countries are currently drawing closer to China for trade and loans for development. China appears to have an active policy to engage Africa in various trade activities.

The country has taken several loans and grants from Beijing. The recent being a proposed 50 billion dollar loan to be paid in a century. China is also to build a truck factory to produce the SinoTruck in Ghana.

There are concerns that Ghana will be drawn into a cycle of loans from China which will come with conditionalities that will give China an upper hand in the affairs of the country.



Andrew Barnes acknowledges that business deals and loans are essential for development, but cautions that they should be transparent and understandable to the ordinary Ghanaian.

He expressed the hope that such facilities will be used diligently to generate returns that will pay off the debts.