The Board of Directors of the African Development Bank Group have given the green light to a USD 102.59 million grant to Ghana in budget support
The initiative is aimed at bolstering the Ghanaian government’s Fiscal Consolidation and Economic Recovery Program.
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“We support the efforts of the (Ghana) authorities to take full advantage of the current difficult economic situation to address the fundamental structural weaknesses of the Ghanaian economy,” Stated Abdoulaye Coulibaly, Director of the Governance and Economic Reforms Department at the African Development Bank
The primary objective of the program is to strengthen fiscal consolidation measures in Ghana and increase resource mobilization, enhancing the government’s financial capacity for investments within the country.
Additionally, the program seeks to fortify the financial sector, making it more attractive for private investment in critical sectors, including agriculture. Aiding the government in achieving its economic recovery objectives through improved public finance, heightened productivity, and job creation.
The grant, sourced from the African Development Fund, the group’s concessionary lending arm, was officially approved on Tuesday, October 31.
The program’s implementation is scheduled over a two-year period, commencing in 2023 and concluding in 2024. The Ghanaian government will work closely with the African Development Bank in executing the program, aligning with an existing International Monetary Fund (IMF) Extended Credit Facility for the country.
“The Bank remains steadfast in providing necessary support for Ghana under the project and beyond, aligning with the country’s development agenda and the Bank’s Country Strategy Paper for Ghana.” Said Joseph Ribeiro, Deputy Director-General for the West Africa region at the African Development Bank
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The Ghanaian economy has faced multiple stressors, including the impact of the Covid-19 pandemic, global financial constraints, and the conflict in Ukraine. All which led the Ghanaian government to default on its debt repayment late last year, leading to currency devaluation and an inflation rate of 49.9% as of September this year.
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