Ghana receives $360m World Bank funds

Ghana has received $360 million in World Bank funds to support economic recovery and fiscal stability.

The Daily Graphic reported that the funds, a follow-up to the $300 million received last year, were deposited into the country’s Bank of Ghana accounts yesterday.

The International Development Association (IDA) concessional credit was approved by the Executive Board of the World Bank on June 27 this year under the Ghana Second Resilient Recovery Development Policy Financing (DPO2).

The funds are to help the country restore fiscal stability, strengthen the financial sector, improve energy sector discipline, and enhance social and climate resilience.

Consequently, the financing will support the implementation of key structural reforms to achieve sustainable growth and a more inclusive, shock-resistant economy, the World Bank said when it approved the loan.

Aimed to boost the country’s fiscal sustainability programme to restore fiscal stability and entrench fiscal discipline, it would support financial sector stability and private sector development.

According to the World Bank, the DPO is part of a broader intervention to support Ghana’s recovery from recent economic challenges and reinforce reforms under the International Monetary Fund (IMF) programme.

“It aims to restore investor confidence, accelerate economic growth, maintain macroeconomic stability, and create a more resilient and inclusive economy,” the World Bank said.

Comment

The Minister of Finance, Dr Cassiel Ato Forson, after the approval of the loan in June, said: “The successful implementation of reform actions under the IMF programme and the Development Policy Operations series (DPO) has strengthened macroeconomic stability, restored investor confidence, and laid a solid foundation for sustained economic recovery and inclusive growth”.

“We are confident that the measures supported by this DPO will help our efforts to enhance fiscal discipline and build a more resilient and inclusive economy, capable of withstanding future shocks,” he added.

Background

Under the Ghana First Resilient Recovery Development Policy Financing (DPO1), the World Bank provided $300 million to finance operations aimed at restoring macroeconomic stability and fostering resilient economic growth after the COVID-19 pandemic.

It was approved early last year to support reforms in key areas, including restoring fiscal sustainability, enhancing financial sector stability, improving energy sector discipline, and strengthening social and climate resilience.

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