Ghana’s Ministry of Finance has issued a stark warning against the President assenting to the recently passed “Proper Human Sexual Rights and Ghanaian Family Values Bill,” cautioning that enacting the controversial anti-LGBTQ legislation could derail the country’s economic recovery and jeopardize billions in foreign aid and investment.
In an internal report summarizing an emergency meeting on the Bill’s potential impact, the Ministry bluntly states, “The potential loss of these financial resources creates a financing gap in the 2024 budget that must be addressed either through a significant reduction in the expenditures or additional domestic revenue mobilisation. Failing this, Government’s ability to achieve the targets in the 2024 Budget will be undermined and the IMF-ECF Programme will be derailed.”
The report, seen by Sharp Daily, warns that Ghana could lose a staggering $3.8 billion in World Bank financing over the next five to six years if the Bill is signed into law. “In total, Ghana is likely to lose US$3.8 billion in World Bank Financing over the next five to six years.
For 2024 Ghana will lose US$600 million Budget support and US$250 million for the Financial Stability Fund,” the document states.
This projected shortfall could have severe ramifications for Ghana’s economic stability and reform efforts. “This will negatively impact on Ghana’s foreign exchange reserves and exchange rate stability as these inflows are expected to shore the country’s reserve position,” the report cautions.
The Ministry also raises concerns about jeopardizing the country’s $3 billion loan program with the International Monetary Fund, which is contingent upon “predictable financing from Development Partners” like the World Bank. “Hence the non-disbursement of the Budget Support from the World Bank will derail the IMF programme. This will in turn trigger a market reaction which will affect the stability of the exchange rate,” the report warns.
While acknowledging potential backlash from conservative allies, the report urges the President to “defer assenting to the Bill until the court rules on the legal issues tabled by key national stakeholders.”
It also recommends “a structured engagement with local conservative forces such as religious bodies and faith-based organizations to communicate the economic implications.”
