The World Bank plans to allocate $1 billion over the next 12 years to support Ghana’s economic stabilization and assist private businesses.
This is in addition to the $1.6 billion already provided since last year for economic support.
The World Bank has expressed satisfaction with the government’s measures to stabilize the economy, which has influenced their decision to fund projects outlined in the budget and other poverty reduction initiatives.
Robert O’Brien, the World Bank Country Director, shared these details on the PM EXPRESS BUSINESS Edition with George Wiafe on August 15, 2024.
He also mentioned an additional $5 billion allocated under the World Bank Group for social intervention programs and infrastructure development.
Additional Support
He announced that the bank will soon convene to approve additional funding for Ghana to support key projects.
Mr. O’Brien added that the Group will also soon review the second Development Policy Operations, which, if approved, could result in further financial support for Ghana.
“We have our portfolio and pipeline project financing for Ghana, in terms of support” he affirmed.
“In terms of the portfolio funding, there is an allocation of $4.4 billion of that over the past 12 months, just $1 billion dollars have been disbursed”, he stated.
In June, the World Bank sanctioned an additional $800 million to bolster various sectors of the economy.
Mr. O’Brien explained that this funding is intended to help Ghana address funding gaps resulting from the country’s challenges in securing capital from international markets.
Is Ghana’s Recovery sustainable?
Mr. O’Brien believes that to ensure sustained economic recovery, the government must exercise fiscal discipline, particularly concerning election-related expenditures.
“Government must also work hard to grow the economy and create the required jobs for the population”, he advised.
He emphasized that maintaining fiscal discipline could significantly contribute to sustaining the economic recovery.
He also mentioned that the World Bank will provide Ghana with the essential technical support to help ensure the continued effectiveness of the ongoing reforms.