WASHINGTON – The World Bank approved US$300 million in financing for Ghana on Tuesday to help support the African country’s recovery from its worst economic turmoil in years.
The assistance from the bank’s arm for lending to the world’s poorest countries the International Development Association (IDA) is a “critical contribution” supporting Ghana’s economic recovery and “resilient and inclusive growth”, the World Bank announced in a statement.
The development lender’s approval follows a US$600 million disbursement from the International Monetary Fund last week under a 36-month, US$3 billion program aimed at supporting Ghana’s embattled economy, which came after it reached an agreement in principle with its external creditors to restructure its debts.
The country has been recovering from a severe economic crisis fuelled by the war in Ukraine and the Covid-19 pandemic, which caused it to suspend payments on its external debts and restructure its domestic obligations.
The issue is set to dominate upcoming elections, which will see the ruling New Patriotic Party seek an unprecedented third consecutive term in office.
“Restoring fiscal and debt sustainability, bolstering growth prospects, curbing inflation, and protecting the most vulnerable, measures supported by this financing are urgent priorities for Ghana,” World Bank vice president for Western and Central Africa Ousmane Diagana said in a statement.
He added that these steps were essential “to allow the country to attract more foreign investment, revitalise its domestic private sector, build resilience against climate change, and improve the quality of life of its people”.
The financing arrangement is the first of three US$300 million loans designed to support Ghana’s economy through a series of steps including strengthening domestic revenue mobilisation and removing barriers to private sector investment, the World Bank announced.
“Ghana’s government remains committed to restoring macroeconomic stability and to the implementation of lasting reforms to set the economy on a path of strong long-term sustainable growth and transformation,” Ghanaian finance minister Ken Ofori-Atta said in a statement. -Nampa/AFP