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Tag: World Bank

  • No project in Ghana has been suspended – World Bank, Sam George reveal

    No project in Ghana has been suspended – World Bank, Sam George reveal

    The World Bank has dismissed speculations regarding the suspension of its funded projects in Ghana, affirming that all initiatives under its portfolio remain active.

     “No projects in the World Bank-financed portfolio in Ghana are currently suspended,” the World Bank is quoted to have stated according to JoyNews.

    Also, Communications Minister Sam George has refuted such claims, describing it as “fake news.”

    “The @WorldBank has NOT withdrawn any funds for the GDAP program. In the coming days, some interesting revelations would be made on the previous activities under the program,” the Minister wrote in a post on X.

    This assurance comes in response to recent discussions suggesting that some World Bank-backed projects in the country had been put on hold due to financial or administrative challenges.

    The announcement provides clarity to government agencies, development partners, and beneficiaries, reinforcing confidence in ongoing projects across key sectors such as infrastructure, healthcare, education, energy, and agriculture. Any disruption to these initiatives could have had significant economic and social consequences, potentially affecting livelihoods and critical service delivery.

    The clarification arrives at a time when Ghana is striving to maintain financial stability and investor confidence amid broader economic recovery efforts. While the World Bank did not specify the reasons behind its statement, the move is likely intended to dispel uncertainties linked to Ghana’s financial engagements with global institutions.

    https://twitter.com/Gen_Buhari_/status/1907437063340744875

    Concerns over potential delays in project funding, regulatory compliance, or fiscal policy changes have fueled speculation about the status of international development assistance. However, the World Bank’s stance reinforces its commitment to supporting Ghana’s economic and social development goals without interruption.

    Ghana continues to navigate economic challenges, including debt restructuring efforts, inflation control measures, and currency stabilization. With reliance on institutions like the World Bank and the International Monetary Fund (IMF) for financial and technical assistance, ensuring the smooth implementation of development projects remains a priority.

    By reaffirming the continuity of its projects, the World Bank seeks to sustain momentum in Ghana’s development agenda and mitigate any concerns that could impact public confidence and foreign investment.

  • It takes 57 days to register a new company in Ghana but 3 days in Rwanda – World Bank’s Taliercio O’Brien bemoans

    It takes 57 days to register a new company in Ghana but 3 days in Rwanda – World Bank’s Taliercio O’Brien bemoans

    The World Bank’s latest Business Ready (B-Ready) 2024 report has highlighted the difficulties entrepreneurs face in setting up businesses in Ghana, revealing that it takes 57 days to register a company in the country, compared to just three days in Rwanda.

    Speaking at the report’s launch, Robert Taliercio O’Brien, the World Bank’s Division Director for Ghana, Liberia, and Sierra Leone, expressed concern over the lengthy business registration process in Ghana.

    “It takes 57 days to register a new domestic company in Ghana. In Rwanda, it only takes 3 days,” he stated, urging authorities to streamline processes to make business entry more efficient.

    The report, which assesses regulatory frameworks and the efficiency of public services for businesses, found that Ghana performed poorly in market competition, business entry, and dispute resolution. It pointed out several gaps, including delays in digitizing intellectual property services, the absence of comprehensive business statistics, and a lack of digital infrastructure within the judicial system.

    It also noted that Ghana does not have a fully electronic company registration system, making the process cumbersome. Additionally, the country lacks an electronic case management system that allows businesses to file initial complaints online.

    Beyond business registration, internet reliability was another area of concern. According to O’Brien, Ghanaian firms face frequent internet disruptions, with 48% of businesses reporting connectivity issues in a typical month, compared to just 2% in more efficient economies.

    Despite these challenges, the report highlighted some positive aspects of Ghana’s business environment. The country scored highly in labor practices, utility services, and business insolvency.

    Ghana was recognized for its effective labor dispute resolution mechanisms, transparent utility service information, and the presence of electronic case management systems for liquidation and reorganization proceedings.

    While the findings underscore Ghana’s regulatory inefficiencies, the report suggests that improving digitalization, reducing bureaucratic delays, and enhancing internet reliability could significantly improve the ease of doing business in the country.

  • Ghana engaging World Bank for $250m funding to support banks affected by DDEP

    Ghana engaging World Bank for $250m funding to support banks affected by DDEP

    The Government of Ghana is in advanced negotiations with the World Bank to secure a $250 million funding facility aimed at supporting banks and financial institutions affected by the Domestic Debt Exchange Programme (DDEP).

    This initiative is part of the broader Ghana Financial Stability Project and is expected to provide much-needed capital to financial institutions that have struggled in the aftermath of the debt restructuring programme.

    Head of Banking and Non-Banking at the Ministry of Finance, Andrew Amerkson, disclosed that the government is prioritizing the recapitalization of at least eleven financial institutions in 2025. 

    Speaking at the launch of the Ghana Association of Savings and Loans Companies’ five-year strategic plan in Accra, he reaffirmed the government’s commitment to stabilizing the financial sector.

    Delivering a speech on behalf of Finance Minister Dr. Cassiel Ato Forson, Amerkson emphasized the importance of recapitalization efforts.

    “The government has long been proactive in ensuring the stability of the financial sector. We designed the Ghana Financial Stability Fund and allocated 5.7 billion cedis to recapitalize bonds, which has been critical in stabilizing the financial system,” Dr. Forson remarked.

    Dr. Forson further highlighted the impact of past interventions, citing the success of the Ghana Financial Stability Fund A2, which was introduced in the previous year.

    “At the end of last year, Fund A2 supported 11 financial institutions, including four banks, four capital market operators, and three insurance companies. This demonstrates the government’s unwavering commitment to ensuring the long-term stability of our financial sector,” he added.

    The Finance Minister confirmed that securing the World Bank loan would be a crucial step in addressing the financial fallout from the DDEP.

    “We have engaged with the World Bank for a loan facility of 250 million dollars, which will specifically support the recapitalization of banks and savings and loans institutions (SDIs). This initiative is part of the World Bank-funded Ghana Financial Stability Project and aims to promote financial stability across the country,” Dr. Forson stated.

    Looking ahead, the government remains optimistic that this funding will strengthen financial institutions and bolster economic resilience.

    “By securing this facility, we are not just addressing immediate liquidity concerns, but also ensuring that our banks and other financial institutions remain resilient and continue to contribute effectively to the economy,” Dr. Forson concluded.

    The DDEP impairment losses have technically rendered some Ghanaian local-owned banks insolvent, which will require additional capital support from shareholders or their full participation in the Ghana Financial Stability Fund. According to an IMF Country report (23/168), the World Bank, other donors and government of Ghana were expected to provide GFSF to an amount of GH¢1.5billion equivalent to facilitate the build- up of capital buffers for qualifying banks.

    Government’s recent move comes at a crucial time as the government seeks to cushion the financial sector from the lingering effects of the DDEP and restore confidence in the banking industry.

  • Roads Minister engages World Bank delegation road infrastructure-funded projects

    Roads Minister engages World Bank delegation road infrastructure-funded projects

    Minister for Roads and Highways, Governs Kwame Agbodza, hosted a delegation from the World Bank, led by Division Director Robert Taliercio O’Brien, on Monday, February 24, to discuss ongoing and prospective road infrastructure projects supported by the institution.

    The meeting, held at the Ministry’s headquarters, focused on strengthening partnerships to tackle Ghana’s road infrastructure challenges and exploring opportunities for future collaboration.

    In a statement shared on the Ministry’s official Facebook page on Tuesday, Mr. Agbodza expressed appreciation for the World Bank’s ongoing contributions to Ghana’s road development efforts.

    “We appreciate the World Bank’s commitment to transforming our roads. Additional funding and technical expertise will help us fast-track vital projects that are essential for national and regional development,” he stated.

    He also underscored the need for increased financial support and technical assistance to expedite the completion of critical infrastructure that will drive economic growth and improve connectivity across the country.

    The discussions further highlighted the pivotal role of road infrastructure in fostering economic advancement and enhancing regional integration.

    The World Bank delegation reaffirmed its commitment to supporting Ghana’s development priorities, with a particular focus on improving the transport sector.

    “We remain dedicated to prioritising road infrastructure and will work closely with the Ministry to ensure the successful implementation of funded projects,” the delegation assured.

    Both parties concluded the meeting with a renewed commitment to strengthen collaboration and streamline project execution to ensure maximum impact.

    The Ministry of Roads and Highways is expected to continue working with the World Bank to secure additional resources for key infrastructure developments across the country.

  • World Bank official engages Health Minister on reform to sustain physician assistants at health centres

    World Bank official engages Health Minister on reform to sustain physician assistants at health centres

    Michelle Keane, the World Bank’s Operations Manager for Ghana, Liberia, and Sierra Leone, has led a delegation on a courtesy visit to Ghana’s Minister of Health, Kwabena Mintah Akandoh, to strengthen collaboration and discuss ongoing health sector initiatives.

    The meeting focused on enhancing existing partnerships and identifying new areas of cooperation to improve healthcare delivery across the country.

    During the engagement, Michelle Keane highlighted the need for reforms aimed at retaining physician assistants who have been temporarily engaged to provide essential healthcare services at various health centres.

    In response, Hon. Akandoh outlined the government’s key health priorities, including the establishment of a Medical Trust Fund, the provision of free primary healthcare, the construction of regional hospitals, and the upgrade of the Greater Accra Regional Hospital into a fully functioning teaching hospital under its second phase of development.

    The Minister also expressed optimism about future support from the World Bank, particularly in strengthening Ghana’s disease surveillance systems.

    Reassuring the delegation of the government’s commitment to collaboration, Hon. Akandoh pledged his full support for World Bank projects, assuring that his office would remain open and attentive to the Bank’s initiatives.

    He further emphasized the importance of fortifying the health sector, noting its direct impact on national productivity and economic stability

  • IFC to pump $600m into Ghana’s private sector to create more jobs

    IFC to pump $600m into Ghana’s private sector to create more jobs

    The International Finance Corporation (IFC), a member of the World Bank Group, has unveiled plans to inject up to $600 million into Ghana’s private sector this year.

    The initiative aims to stimulate job creation, drive industrial development, and boost economic growth across key sectors.

    This substantial investment will prioritize the garment and agro-processing industries, which have been identified as pivotal in generating employment and strengthening Ghana’s industrial capacity. IFC Country Director, Kyle Kelhofer, revealed these plans during a courtesy meeting with the Majority Leader in Parliament.

    “We are here to support the private sector, invest in the private sector, mobilize the private sector, both international and local, and to help create more and better jobs. And what you saw last week at the garment factory was an example of Ghana’s increased ability to take advantage of industrialization to create more and better jobs, and in garments in particular for women,” Kelhofer stated.

    He emphasized that the IFC’s focus is not limited to garments alone but extends to other industries, particularly agro-processing. Kelhofer highlighted the IFC’s growing commitment, noting that in 2024, the corporation facilitated approximately $450 million in financing for businesses in Ghana, with this year’s target set between $500 million and $600 million.

    “This isn’t limited to just garments. It can also be agro-processing, or other forms of industry, but we’re of the view there’s an increased opportunity. And as a result, we’ve been supporting more,” he added.

    The investment strategy also includes support for companies operating within industrial zones, as well as those involved in agro-processing nationwide, all aimed at fostering job creation and industrial expansion.

    In response, Majority Leader Mahama Ayariga welcomed the IFC’s commitment, acknowledging its potential to support the government’s job creation agenda. He highlighted the importance of partnerships with organizations like the IFC to bridge funding gaps faced by the government.

    “Clearly, a government will be constrained in terms of the financing of a lot of the commitments that we have made. And so increasingly, we need to be looking at sources like yours and then working with the private sector to be able to create jobs and grow the economy,” Ayariga remarked.

    He also urged lawmakers to play an active role in connecting industries with financial resources and shaping policies that encourage industrial growth.

    “It will definitely go a long way to help us fulfill our commitment to young people, to create jobs, to grow the economy, and then to create more wealth for us to equitably distribute,” he concluded.

  • Ghana’s revenue-enhancing measures must expand tax base, rely on efficient taxes – World Bank

    Ghana’s revenue-enhancing measures must expand tax base, rely on efficient taxes – World Bank

    The World Bank has emphasized the need for Ghana to adopt a more effective approach to revenue mobilization by broadening its tax base and implementing efficient tax policies.

    The government of Ghana has announced its decision to abolish draconian taxes such as the Electronic Transfer Levy, betting tax, among others and focus on addressing the issue of tax compliance to increase tax revenue to 16% of GDP.

    In its latest Public Finance Review report, titled “Building the Foundations for a Resilient and Equitable Fiscal Policy,” the World Bank highlighted critical areas requiring urgent reform to ensure sustainable economic stability.

    According to Robert Taliercio, the World Bank Country Director for Ghana, Liberia, and Sierra Leone, Ghana must focus on fair and sustainable fiscal adjustments while protecting key social and economic investments. 

    “Ghana needs to persist in its ambitious fiscal consolidation efforts, ensuring that adjustments are both fair and sustainable,” he stated. “It is crucial to protect pro-poor and pro-growth investment while enhancing domestic revenue mobilization. Additionally, Ghana must address the increasing fiscal liabilities stemming from the energy and cocoa sector.”

    The World Bank outlined four high-level policy priorities Ghana must implement to strengthen its fiscal system:

    Strengthening Fiscal Discipline and Transparency

    The report recommends that Ghana enforce a fiscal rule to limit procyclical spending while ensuring better expenditure controls and oversight of liabilities. It suggests replacing the current fiscal balance rules with a combination of “an expenditure and a debt rule (with well-defined escape clauses and limits on external borrowing).” Additionally, it advises granting institutional independence to the fiscal council and improving transparency through engagement with Parliament, civil society organizations, and the media.

    Improving Public Financial Management (PFM)

    To enhance fiscal discipline, the World Bank stresses the need for structural reforms in budget preparation and execution. The report calls for “improving the budget preparation process to enhance its credibility, strengthening commitment controls and cash management (notably by expanding the scope of the GIFMIS and the TSA) to improve budget execution.” It also recommends leveraging technology to boost transparency and trust in government operations.

    Containing Contingent Liabilities and Rigid Expenditures

    The report highlights the risks associated with unchecked public spending, particularly in the energy and cocoa sectors. It calls for deepened reforms in these areas to limit fiscal liabilities. Among the measures suggested are “reducing rigid expenditures by containing the public sector wage bill, rationalizing public spending on goods and services, and limiting transfers to government units.”

    Expanding Domestic Revenue Mobilization (DRM)

    To reduce reliance on external financing, Ghana must pursue equitable and sustainable revenue generation strategies. The World Bank underscores the importance of operationalizing the country’s Medium-Term Revenue Strategy (MTRS) and implementing key tax reforms, including “removing VAT exemptions, reforming the CIT by phasing out tax holidays and exemptions, and strengthening safeguards against profit-shifting.” The report also urges enhanced oversight of tax expenditures to ensure transparency and efficiency.

    The World Bank advises Ghana to ring-fence investments in sectors that drive human development, economic transformation, and climate resilience.

    Human Capital Development: Protecting funding for primary education, healthcare, and social assistance programs like LEAP.

    Agricultural Transformation: Increasing capital expenditures, improving monitoring of government spending in the sector, and ensuring the profitability and transparency of the cocoa industry.

    Economic Infrastructure: Enhancing transport networks, ICT infrastructure, and urban planning to facilitate trade and economic growth.

    Climate Resilience: Investing in cost-effective climate solutions that provide both environmental and economic benefits, such as improved water management and low-carbon energy initiatives.

    The report concludes that Ghana’s long-term economic recovery hinges on bold policy reforms, efficient spending controls, and a modernized revenue collection system.

    World Bank Ghana Public Finance ReviewDownload
  • Ghana’s debt crisis demands strict financial reforms

    Ghana’s debt crisis demands strict financial reforms

    World Bank says Ghana’s financial problems are mainly due to poor budget management, which has led to uncontrolled government spending, rising interest payments, and financial struggles.

    In its latest Public Finance Review, the Bank explains that heavy spending during election years, expensive bailouts in the financial and energy sectors, and costs related to the COVID-19 pandemic have put a huge strain on Ghana’s finances. As a result, the government has little money left for important development projects.

    Between 2010 and 2023, almost 70% of government spending went to salaries for public sector workers, interest payments on loans, and mandatory expenses, leaving little for infrastructure and economic growth.

    Rising borrowing costs have also made it harder to invest in crucial projects.

    The report stresses that Ghana must improve its financial management by increasing domestic revenue, reducing unnecessary tax breaks, and enforcing stricter spending controls.

    If these changes are not made, the World Bank warns, Ghana could lose recent economic progress and remain in financial trouble for a long time.

    To ensure stability, the government needs to cut unnecessary spending, improve financial oversight, and adopt a stricter budget system to rebuild investor confidence and encourage long-term growth.

  • ‘Dangerous and complacent’ – World Bank warns Ghana over decision to return to capital market

    ‘Dangerous and complacent’ – World Bank warns Ghana over decision to return to capital market

    The World Bank’s Country Director for Ghana, Liberia, and Sierra Leone, Robert Taliercio, has advised Ghana to exercise caution before re-entering international capital markets, stressing that a premature move could jeopardize the country’s recent economic progress.

    Speaking at the launch of the World Bank’s latest Public Finance Review report, Building the Foundations for a Resilient and Equitable Fiscal Policy, Taliercio emphasized that rushing back to the markets too soon could create uncertainty among investors. He warned that such a step might undo the benefits of Ghana’s debt restructuring efforts and expose the nation to high borrowing costs that could strain its financial stability.

    His remarks come in the wake of Ghana’s successful restructuring of both domestic and external debts, which provided substantial relief through the $3 billion IMF Extended Credit Facility (ECF) programme. While recognizing these milestones, Taliercio urged policymakers to remain vigilant, cautioning that Ghana has, in the past, struggled with maintaining long-term fiscal discipline.

    He stressed the need for prudent financial management to consolidate the gains made under the debt restructuring process, warning that any hasty financial decisions could have long-term consequences for the country’s economic resilience.

    “The risk now is falling into complacency with these achievements and returning to a business-as-usual mindset – a recurring error in the past. Ghana has requested a record 17 IMF programs and has been under active IMF supervision for 40 out of its 68 years of independence,” he noted.

    He further cautioned that hastily seeking dollar financing from international markets could backfire, leading to a resurgence of high borrowing costs and renewed economic instability.

    Ghana has remained shut out of international capital markets since 2022, largely due to its mounting debt burden, slow economic growth, and fragile balance of payments.

    Although the government is keen to restore investor confidence, the World Bank emphasized that a well-timed approach, coupled with strict fiscal discipline, will be essential to achieving sustainable economic stability..

  • World Bank cautions Ghana against immediate return to capital market amid economic recovery

    World Bank cautions Ghana against immediate return to capital market amid economic recovery

    The World Bank has warned Ghana against hastily returning to international capital markets, cautioning that a premature move could undermine the country’s recent financial stability and reverse progress made under its debt restructuring programme.

    Robert Taliercio, the World Bank Country Director for Ghana, Liberia, and Sierra Leone, raised these concerns during the launch of the institution’s latest Public Finance Review report, titled “Building the Foundations for a Resilient and Equitable Fiscal Policy.” He cautioned that an early return to borrowing could erode investor confidence, reintroduce unsustainable debt burdens, and derail Ghana’s ongoing economic recovery.

    “The risk now is falling into complacency with these achievements and returning to a business-as-usual mindset – a recurring error in the past. Ghana has requested a record 17 IMF programs and has been under active IMF supervision for 40 out of its 68 years of independence,” Taliercio remarked.

    Ghana recently restructured both domestic and external debts as part of its economic reform programme under the $3 billion IMF Extended Credit Facility (ECF). Despite these gains, Taliercio cautioned against repeating past financial missteps, warning that a rushed return to dollar-denominated borrowing could result in high interest rates and renewed fiscal instability.

    Since 2022, Ghana has been shut out of international capital markets due to excessive debt levels, sluggish economic growth, and external imbalances. While the government is eager to regain access, the World Bank emphasizes that a disciplined and well-timed approach will be crucial in ensuring long-term economic stability.

  • ‘I won’t depend on politicians’ – Asantehene reaches out to World Bank for Kumasi’s devt.

    ‘I won’t depend on politicians’ – Asantehene reaches out to World Bank for Kumasi’s devt.

    Asantehene Otumfuo Osei Tutu II has emphasized his preference for independent development efforts in Kumasi, stating he will not rely on Ghanaian politicians for the city’s progress.

    The Asantehene made this assertion during a courtesy visit by the World Bank Vice President for Western and Central Africa, Ousmane Diagana. He called on the World Bank to support infrastructure improvements in Kumasi, particularly highlighting the need for a mass transit system to ease congestion and boost economic activity.

    “Kumasi has grown significantly in population. The rapid transport system you’re proposing has been delayed since 2015 due to bureaucratic hurdles. We need to act now because the increased population and vehicular congestion are stifling economic development,” Otumfuo Osei Tutu II remarked.

    The Asantehene further stressed the importance of effective infrastructure as a catalyst for development and expressed his intention to bypass political processes to achieve this.

    “If we have the right infrastructure, everything else will fall in place. I do not wish to depend on politicians for the development of Kumasi,” he stated.

    Proposing an alternative approach, he added, “Let’s establish a social contract that directly supports these development initiatives so we can get it done.”

    His remarks underscore a call for collaborative partnerships with global institutions like the World Bank to drive Kumasi’s transformation, independent of political influence.

    https://twitter.com/Graphicgh/status/1878070524552659073

  • Ghana to engage World Bank for technical advice on privatizing ECG – Mahama

    Ghana to engage World Bank for technical advice on privatizing ECG – Mahama

    President John Dramani Mahama has revealed plans to engage the World Bank for technical expertise on the possible privatisation of the Electricity Company of Ghana (ECG) to address inefficiencies in the country’s power distribution system.

    Speaking during a meeting with a delegation from the World Bank on Wednesday, January 8, 2025, at his private office in Accra, Mahama highlighted that private sector involvement in the management of ECG could help resolve operational inefficiencies, financial mismanagement, and inadequate service delivery.

    “If we don’t fix the Electricity Company of Ghana, we will continue to have a major problem with our whole power value chain. So, going ahead with privatising the last point of electricity distribution, bringing in private sector efficiency is something that we want to take up again. We want to speak with the World Bank to get the expertise to be able to do that,” he stated.

    Mahama indicated that the move would be part of a broader strategy to modernize and enhance the performance of the energy sector, emphasizing the importance of efficient energy distribution to support national development goals. He assured stakeholders that any decision on ECG’s future would involve thorough consultations to balance public interest with the need for improved performance.

    https://twitter.com/ghonetv/status/1877051914895937627

    Calls for the privatisation of ECG have gained traction in recent times due to the inefficiency of ECG and disruption in power supply. In August last year, the Africa Sustainable Energy Centre (ASEC) argued that involving private investors could allow ECG to focus on its core technical duties, such as maintaining and upgrading infrastructure, while administrative and commercial responsibilities would be transferred to investors.

    However, some industry players have raised concerns. The Chief Executive Officer (CEO) of Independent Power Generators Ghana, Dr. Elikplim Kwabla Apetorgbor, warned that privatisation could undermine the accessibility, affordability, and stability of electricity services, which are crucial for national development.

    He argued that retaining public ownership ensures accountability, equitable access, and strategic governance control over this vital national asset.

  • Focus, track remittances to save you from begging and borrowing – Dr Atuahene to Mahama’s govt

    Focus, track remittances to save you from begging and borrowing – Dr Atuahene to Mahama’s govt

    Banking consultant, Dr. Richmond Atuahene, has advised the incoming administration to monitor the foreign remittance sector closely to prevent the need for borrowing $3 billion from the World Bank or seeking aid from the International Monetary Fund (IMF).

    He further emphasized that the President should gather skilled professionals to come up with effective plans to address the country’s large debts, particularly those owed to contractors.

    “He must appoint people who understand microeconomic issues to help him; that will be a significant advantage.

    The next step will be financing the debts, specifically the 31 million contractors’ debts and energy-related debts,” Dr. Atuahene explained.

    “His Excellency must form a team like the one in place in 2010. They need a credible arrears repayment plan so that, maybe within three or four years, the debts will be cleared, and not a new one will be created.

    If this is done, the challenge becomes surmountable. With the right brains and technical people, they can achieve a lot in four years if they are allowed to help,” he stated on GHOne TV.

    He continued, “Even remittances alone will surpass the IMF loan. If we are able to track them properly, we will not need to beg for US$3 billion.”

    Dr. Richmond Atuahene also recommended that upon taking office, Mr. John Dramani Mahama should create a dedicated unit within the Central Bank to monitor and manage remittances.

    He pointed out that while Ghana receives significant foreign remittances, only a small portion flows through the banking system, making it harder to track and manage these funds efficiently.

    “The first thing I want to advise the incoming President is to strengthen the remittance system or even create a new unit at the Central Bank, as Bangladesh does, where 95% of remittances go through the banking system.

    In Ghana, we only track about 50%, so the other 50% doesn’t enter the banking system.”

    “In 2023, the World Bank reported US$4.7 billion in remittances, but we only tracked US$2.8 billion, so US$1.9 billion is unaccounted for. Previously, we tracked only half of the US$4.2 billion remitted. But if we implement a strong system, we will be able to track more,” Dr. Atuahene added.

    “Once we are able to track remittances properly, it will help manage the economy, stabilize the cedi, and reduce inflation.”

  • Adjustment of IMF, World Bank deals vital in rebuilding of the economy – Mahama

    Adjustment of IMF, World Bank deals vital in rebuilding of the economy – Mahama

    President-elect John Dramani Mahama has underscored the need to review and adjust Ghana’s ongoing programmes with the International Monetary Fund (IMF) and the World Bank to align with the country’s current economic realities and priorities.

    Speaking during a courtesy call by the United Nations Resident Coordinator, Charles Abani, Mr Mahama emphasised that these adjustments are critical to stabilising Ghana’s economy and ensuring sustainable recovery.

    “Looking at the existing programmes, we need to tweak them to meet the realities of today… One of our main concerns is the issue of debt repayments. We need to see how we can smooth them so that we don’t default again, which will be more catastrophic than the current defaulting,” he stated.

    Mr Mahama noted that swift engagements with international institutions like the IMF and World Bank would be a priority to realign ongoing initiatives with his incoming government’s vision.

    The transition process, he explained, is grounded in Section 1 of the Presidential (Transition) Act, 2012 (Act 845), which mandates the formation of a Transition Team within 24 hours after the declaration of presidential election results. This framework ensures continuity and facilitates smooth handover between administrations, setting the stage for effective collaboration with development partners.

    “This adjustment is crucial and will help put the new government that would be inaugurated next year on the same springboard with our development partners to begin the rebuilding of the economy and the country,” Mr Mahama stated.

    Ghana is currently under a 36-month, $3 billion Extended Credit Facility with the IMF and has signed agreements with the World Bank, including a $250 million Ghana Financial Stability Project and another $250 million for the Ghana Energy Sector Recovery Programme. Mr Mahama stressed the urgency of managing these programmes effectively to stabilise the economy while addressing debt obligations.

    “I don’t kid myself that it is going to be an easy task; it is going to be quite tough. I anticipated that we were going to win, but I didn’t anticipate the margin by which we were going to win. That is an indication that Ghanaians have very high expectations,” he added, committing to working tirelessly to meet those demands.

    Highlighting the role of global partnerships, Mr Mahama lauded the United Nations and its agencies for their longstanding support to Ghana, particularly in areas like food security.

    “We are anticipating that there is going to be some problems with the availability of food, and so how we are able to quicken support to ameliorate the situation is something that we would like to work on,” he remarked.

    He expressed readiness to collaborate with agencies such as UNICEF and UNHCR to uplift Ghanaians from economic hardship.

  • Investigation underway into allegations against Development Bank Ghana

    Investigation underway into allegations against Development Bank Ghana

    The World Bank has stated that it is aware of the allegations concerning the operations of the Development Bank Ghana, which is a recipient of support through the Ghana Development Finance Project funded by the International Development Association (IDA).

    “We take all fiduciary issues very seriously and we are engaging key partners to obtain full clarifications”, a short statement from the bank said.

    Vice President of Imani Africa, Bright Simons, recently claimed that the funds designated for the Development Bank Ghana had been mismanaged.

    Mr. Simons highlighted significant concerns regarding the bank’s capitalization, asserting that more than GH¢400 million had been wasted due to poor contracting practices.

    DBG denied claims of misusing funds allocated for operations

    The Development Bank Ghana refuted claims that it misused funds allocated for its operations by the country’s development partners.

    In a statement, the bank rejected media reports containing what it calls “significant inaccuracies and falsehoods” about its activities, stating that these undermine the institution’s commitment to transparency and Ghana’s economic transformation.

    DBG clarified that it was initially capitalised with GH¢1.135 billion (approximately $200 million at the time) by the Ghanaian government in 2021, with additional funding from the African Development Bank.

    The bank rejected claims that it misappropriated over GH¢400 million, emphasizing its stringent procurement policies. In a statement released on November 13, DBG noted, “Our procurement processes remain stringent, rigorous, and evolving in line with best global practices.”

    Furthermore, DBG disputed assertions that it incurred GH¢700 million in losses, instead highlighting consistent annual profits since its inception, including GH¢80.1 million in 2023.

    They also countered allegations about misuse of World Bank and European Investment Bank funds, noting these credit lines are strictly monitored and used exclusively for on-lending through financial institutions.

    What is the IDA?

    The IDA, a division of the World Bank, supports the world’s low-income nations.

    Through its grants and low-interest loans, the IDA helps these countries invest in their development, enhance living conditions, and build safer, more prosperous communities globally.

    World Bank approves $250m for Ghana

    On June 18, 2024  the World Bank  approved a $250 million credit from the IDA and an additional $10 million grant from the Energy Sector Management Assistance Programme, to support a 4-year Ghana Energy Sector Recovery Programme for Results (PforR) to improve the financial viability of electricity distribution and increase access to clean cooking solutions.

    The PforR will provide financing directly to energy sector utilities to implement capital expenditure programs and complement regulatory and policy reforms of the energy sector supported under the World Bank’s Development Policy Financing series and the ongoing IMF Extended Credit Facility Programme for Ghana.

    The Clean Cooking Component of the Programme will increase the access of Ghanaian households, schools, and businesses to Liquified Petroleum Gas for domestic and commercial use. The PforR will provide direct incentives to subsidize the cost of stoves and accessories.

    The ESRP is expected to provide a wide range of benefits to consumers which includes market development, affordability, energy access and equity, health and environmental protection against air pollution and associated health risks.

    Robert Taliercio, World Bank Country Director for Ghana, Liberia, and Sierra Leone said, “Through this important results-based financing, the World Bank is committed to supporting the recovery of Ghana’s energy sector and its financial sustainability. The operation aims to strengthen revenue collection and improve the quality of energy supply through investments in prepaid metering and in the commercial and meter management systems of distribution utilities,”.

    Minister for Finance, Dr Mohammed Amin Adam also said, “ the Government of Ghana is grateful to the World Bank for their support in the attainment of the Sustainable Development Goals (SDGs), particularly Goal 7 (Affordable and Clean Energy). Our quest to achieve financial viability in electricity distribution and increasing access to clean cooking solutions is essential for building sustainable energy systems that support economic development, improve public health, and protect the environment while promoting energy access and equity for all”.

    He continued that “our access to sustainable energy is not just about powering homes and businesses, it’s about empowering communities, protecting the environment, and fostering inclusive and sustainable development”.

    The Energy Sector Management Assistance Programme provides knowledge, technical assistance, and advisory services to help countries enhance their institutional capacity and implement sustainable energy solutions.

  • Ghana signs $260m deal with World Bank to resolve energy sector crisis

    Ghana signs $260m deal with World Bank to resolve energy sector crisis

    Ghana has signed a significant US$260 million deal with the World Bank aimed at addressing the US$1.2 billion losses and various inefficiencies plaguing its energy sector.

    This agreement, part of the Energy Sector Recovery Programme, includes a US$250 million credit for a metering procurement package and a US$10 million clean cooking grant component, in line with the Bank’s Programme for Results (PforR) initiative.

    As part of the agreement, the World Bank will facilitate the procurement of one million meters through competitive bidding, with the clean cooking component receiving an advance of 20 percent of the financing requirement initially. The initiative is tied to specific targets, such as optimizing energy generation transmission, ensuring transparency in the Cash Waterfall Mechanism, and significantly reducing revenue collection losses for the Electricity Company of Ghana (ECG).

    The deal is expected to drastically decrease the country’s metering gap and integrate new meters into the billing system, thereby improving commercial loss. Speaking at the signing event, Dr. Mohammed Amin Adam, Finance Minister, emphasized the government’s commitment to enhancing efficiency in the energy sector and increasing financial viability by adopting innovative approaches. He urged the ECG to eliminate high electricity distribution losses and improve collection rates, which have caused the government to spend approximately GHS18 billion (US$1.2 billion) in financing energy sector shortfalls in 2024 alone.

    “The cash waterfall mechanism must be adhered to… and we won’t compromise,” he stated, directing the ECG to ensure that all collections are funneled back into the system and redistributed to beneficiaries to build confidence in the investor community.

    Mr. Asjish Khanna, Protective Manager for West and Central Africa Energy at the World Bank, noted that the financing arrangement would yield better results due to its performance-based structure. “This is better because rather than releasing money without achieving the results, this format of financing ensures that money is disbursed only after the achievement of results,” he explained.

    He further added, “We are asking ECG’s financial accounts audited to be disclosed annually at a particular time every year; once they disclose it in year one, a certain amount of money would be released.” Additionally, he emphasized that since everyone acknowledges that ECG’s collection and losses are not optimal, there is a target for reducing those losses, and funds will be released based on the level of reduction achieved each year.

    Mr. Khanna concluded that these measures are designed to ensure Ghanaians receive accurate meter readings while the ECG reduces its fiscal drain, stating, “Efficiency in ECG means better service to people.”

  • World Bank approves $260m to revitalize Ghana’s energy sector

    World Bank approves $260m to revitalize Ghana’s energy sector

    Finance Minister Dr. Mohammed Amin Adam has announced a landmark $250 million credit and an additional $10 million grant from the World Bank, dedicated to Ghana’s Energy Sector Recovery Program for Results project.

    This agreement, signed in Washington, DC, is a notable milestone, marking the first such arrangement in over twenty years.

    Part of Ghana’s broader Energy Sector Recovery Programme, the project targets improvements in the financial stability of the electricity distribution sector, expanded access to clean cooking solutions, and enhanced health and environmental outcomes.

    Dr. Adam emphasized the urgent need to address significant distribution losses and low collection rates, which account for a 2% annual GDP deficit.

    In his remarks, Dr. Adam noted, “It is in this connection that we continue to work with our partners, the World Bank, to frame important interventions in the energy sector. By enhancing revenue collection and operational efficiency, this project aims to stabilize the energy sector, which is crucial for promoting economic growth and attracting investments”.

    Highlighting infrastructure priorities, Dr. Adam explained that efforts such as prepaid metering and advanced commercial management systems for distribution utilities are key to creating a resilient energy supply chain that supports Ghana’s industrial growth.

    “Towards this, we have prioritised investments in infrastructure improvements, such as prepaid metering systems and enhanced commercial management for distribution utilities. These investments are designed to streamline operations and reduce costs, thereby contributing to a more robust energy supply chain that can better support industrial and economic growth,” he added.

    With energy sector shortfalls amounting to about GHS18 billion ($1.2 billion) this year alone, he underscored the necessity for effective implementation and adherence to financial regulations to ensure the project benefits Ghanaian citizens.

    Confident in the program’s potential, Dr. Adam expressed that achieving a financially sustainable energy distribution sector will drive Ghana’s medium-term growth goals, creating jobs, enhancing productivity, and stimulating further investments.

    He concluded by thanking the World Bank and other development partners for their strategic collaboration towards Ghana’s sustainable development and brighter future.

  • World Bank pledges to support the agribusiness sector with US$9bn

    World Bank pledges to support the agribusiness sector with US$9bn

    The World Bank has pledged US$9 billion towards agribusiness investments, urging the establishment of a robust global ecosystem in light of anticipated food demand growth of up to 60 percent.

    This appeal comes after the Bank identified four emerging trends that could transform the agribusiness sector: enhancing productivity, building climate resilience, and securing employment for the world’s 1.2 billion young people in the coming decade.

    Ajay Banga, President of the World Bank Group, emphasized the importance of global leaders and development partners working together to ensure that the benefits of the agribusiness sector are accessible to all.

    He spoke on “Agriculture and food as an engine for sustainable growth and jobs,” on Wednesday, October 23, at the 2024 International Monetary Fund (IMF)/WBG Annual Meetings in Washington, DC (USA).

    He stated that the four crucial changes—climate finance, the flow of private capital, advancements in digital technology, and the connection between smallholder farmers and large food companies and traders—offer significant opportunities for transforming agribusiness.

    “We are combining a new way of working with a new level of investment – doubling our agri-finance and agribusiness commitments to $9 billion annually by 2030,” Mr Banga said.

    “Taking advantage of this opportunity will not happen without a new approach. For us, that change begins today with the goal to create a comprehensive ecosystem for agribusiness,” he said.

    Mr. Banga highlighted that over the last 16 months, the Bank has thoroughly investigated the challenges related to increasing food production, enhancing productivity, and addressing concerns surrounding water scarcity, fertilizers, infrastructure, and financing.

    “It moves us beyond fragmented efforts to a constellation of solutions that includes everything from warehousing to logistics to production, but with smallholder farmers and producer organizations at the centre,” he said.

    He stated that with the Bank’s newly simplified Guarantee Platform, there would be a boost in agric and agribusiness transformation, making it easier to deliver tailored solutions to meet the diverse demands of various partners.

    “The effort to transform agribusiness is not only about securing the food systems of tomorrow—it is fundamentally a jobs initiative… delivering quality of life and job opportunities,” Mr Banga said.

    The provision of jobs, he said had become necessary as in the next 10 years, 1.2 billion young people in developing countries would enter the workforce, with only 420 million jobs projected to be available, leaving nearly 800 million without a clear path to employment.

    “We stand at a crossroads, and the path we choose today will determine the future. By transforming agriculture and agribusiness, we can create the food system of tomorrow, raise living standards, and create jobs,” he stated.

    “The increase in agricultural productivity—and incomes—will help create jobs, boost revenues, and improve the quality of food and nutrition. Climate-smart production practices will mean fewer emissions and cleaner air and water. Overall, a better quality of life,” the World Bank President said.

  • World Bank declares Ghana’s policy rate highest in Africa

    World Bank declares Ghana’s policy rate highest in Africa

    Ghana’s monetary policy rate, currently at 27.0%, is the highest in Africa, according to the World Bank.

    In its October 2024 Africa Pulse Report, the World Bank noted that the Bank of Ghana, along with other central banks, has maintained elevated interest rates to effectively manage inflation expectations and achieve a more stable trajectory towards their inflation targets.

    “Central banks in countries that still have double-digit inflation and weakened domestic currencies (such as Angola, Nigeria, and Sierra Leone) will keep monetary policy rates higher for longer and, in fewer cases, they may increase their policy rates—particularly in countries where inflation rates still have not peaked.

    Broadly, currency weakness, slow fiscal adjustment, and cost pressures are among the factors driving these countries to keep a tighter stance for a longer period.”

    For instance, it said Ethiopia, Ghana, and Nigeria are among the worst performing in Africa this year, and their currencies continue weakening while demand for foreign exchange remains pressing.

    Nonetheless, the World Bank pointed out that with an improving inflation outlook and stabilising currencies, some countries are likely to end their hiking cycle and start reducing monetary policy rates.

    However, price stickiness and the need to anchor expectations and restore the ability to achieve targets may delay benchmark rate cuts.

    In September 2024, the Bank of Ghana reduced its benchmark policy rate by 200 basis points to 27.0%, marking its second rate cut since 2021.

    Prior to this, Fitch Solutions, a UK-based financial firm, had anticipated this move in August 2024, predicting that the Bank of Ghana would lower its policy rate by the same margin before the year ended.

    While this decision met Fitch’s expectations, the firm noted that the significant depreciation of the cedi and the Bank of Ghana’s hawkish stance led them to revise their end-2024 forecast upward from 25.00%.

  • 26 poorest countries in worst financial shape since 2006 – World Bank

    26 poorest countries in worst financial shape since 2006 – World Bank

    A new report from the World Bank released on Sunday highlights that the world’s 26 poorest countries, which are home to 40% of the most impoverished individuals, are experiencing their highest levels of debt since 2006.

    These nations are also increasingly susceptible to natural disasters and other shocks.

    The findings reveal that, on average, these economies are currently in a worse financial position than they were just before the COVID-19 pandemic, even as most of the globe has bounced back and returned to a growth path.

    Published just a week before the annual meetings of the World Bank and International Monetary Fund in Washington, this report signifies a significant setback in the battle against extreme poverty.

    It also emphasizes the World Bank’s goal to secure $100 billion this year to replenish the International Development Association (IDA), which funds the world’s poorest countries.

    The economies studied, each with an annual per-capita income below $1,145, are increasingly dependent on IDA grants and loans with near-zero interest rates, as traditional market financing options have largely disappeared.

    The average debt-to-GDP ratio for these countries has reached 72%, the highest level in 18 years, with half of them either in debt distress or at a high risk of it.

    Additionally, two-thirds of these nations are grappling with armed conflict or struggling to maintain order due to institutional and social instability, which hampers foreign investment.

    Most of them rely heavily on commodity exports, making them vulnerable to frequent economic fluctuations.

    “At a time when much of the world simply backed away from the poorest countries, IDA has been their lifeline,” World Bank chief economist Indermit Gill said in a statement.

    “Over the past five years, it has poured most of its financial resources into the 26 low-income economies, keeping them afloat through the historic setbacks they suffered.”

    The International Development Association (IDA) is typically replenished every three years through contributions from countries that hold shares in the World Bank.

    In 2021, it achieved a record funding level of $93 billion, and World Bank President Ajay Banga is striving to surpass that figure, aiming for over $100 billion in pledges by December 6.

    Over the past decade, natural disasters have increasingly impacted these countries. From 2011 to 2023, they experienced average annual losses equivalent to 2% of their GDP due to natural calamities—five times higher than the average loss faced by lower-middle-income countries.

    This situation underscores the urgent need for significantly greater investments, according to the World Bank.

    The report also emphasizes that these nations, which feature large informal sectors operating outside their taxation systems, need to take proactive measures for their own improvement.

    It suggests enhancing tax collection efforts by simplifying taxpayer registration and streamlining tax administration processes, as well as increasing the efficiency of public spending.

  • We are with you – World Bank to communities hit by drought

    We are with you – World Bank to communities hit by drought

    The World Bank Country Director for Ghana, Liberia, and Sierra Leone, Robert Taliercio O’Brien, has urged farmers affected by this year’s drought in northern Ghana to remain steadfast.

    His remarks came during a tour of the Upper East Region, where he visited project sites under the West Africa Food System Resilience Programme (FSRP).

    This initiative, funded by the World Bank, aims to strengthen food system resilience in Ghana and across the sub-region amid climate-induced agricultural challenges.

    Speaking to farmers and media representatives, Mr. O’Brien acknowledged the severe impact of the drought but expressed admiration for the determination and resilience of the farmers he met.

    “I have come to deliver one message only, and that is, the World Bank stands with you in these trying times and we are committed to continuing supporting Ghana and the sub-region to build and promote robust value chain systems to ensure that we emerge steadfast and even stronger during and after unforeseen, unavoidable tests of nature”.

    Mr. O’Brien expressed his satisfaction that communities benefiting from World Bank-funded irrigation systems remained largely unaffected by the recent drought. These irrigation systems facilitated dry-season farming, crucial for sustaining agricultural productivity during challenging conditions.

    During his visit, Mr. O’Brien, accompanied by teams from the World Bank Ghana and the West Africa Food System Resilience Programme (FSRP), inspected various components of the Tono Irrigation Scheme.

    This scheme had undergone significant rehabilitation funded by the World Bank and the Government of Ghana under the Ghana Commercial Agriculture Project (GCAP). His inspection included the dam wall, reservoir, and spillway, as well as the automation system at the intake structure, which controls water flow into the main irrigation canal.

    Additionally, Mr. O’Brien reviewed the solar facility in Zone B, which includes solar panels and pumps used to deliver water to higher farmlands. He also toured Zone A, interacting with farmers and observing their fields. A stop at the bifurcator, where the main canal splits into the Left Bank Canal (LBC) and Right Bank Canal (RBC), allowed him to engage with farmers along the LBC and visit lateral F14 in Zone C.

    The World Bank and the Government of Ghana have made substantial investments through GCAP to rehabilitate and expand key irrigation schemes, including the Kpong Irrigation Scheme (KIS), Kpong Left Bank Irrigation Scheme (KLBIS), Tono Irrigation Scheme (TIS), and Vea Irrigation Scheme (VIS). Looking ahead, the FSRP will build on these accomplishments by completing work on the Vea Irrigation Scheme and continuing improvements on the Tono Irrigation Scheme.

    Through FSRP, support for intensifying production has been provided to farmers via input credit, further enhancing the resilience and efficiency of these vital irrigation systems.

    “Under a Norwegian grant, farmers at Tono will be supported with input to cultivate 50 hectares of tomato using the solar-powered pumps in Zones B & O

    “FSRP is further activating on-farm demonstrations to promote proven CSA (climate-smart agric) technologies in tomatoes and set up adaptive trials to evaluate the suitability of locally released tomato seeds.

    Logistical support is also being provided to facilitate the implementation of the West Africa Food System Resilience Programme (FSRP) activities by Agriculture Extension Agents, enhancing their ability to carry out these initiatives on the ground.

    World Bank Director, Mr. O’Brien, reassured farmers that the Bank’s involvement goes beyond mere funding. He emphasized their commitment to being actively engaged with farmers throughout the process, stating, “We shall be with you on the ground, every step of the way; and we shall not relent until our full objective of credible food security has been met.”

    Ms. Ashwini Sebastian, Senior Agricultural Economist at World Bank Ghana and Task Team Leader for FSRP, highlighted that irrigation is just one component of the agricultural value chain.

    She stressed the importance of integrating other interventions, such as adopting innovative farming methods, using climate-smart seeds, and implementing value-addition strategies, to achieve the desired quality and yield improvements in food production.

    The Project Coordinator for FSRP, Mr. Osei Owusu-Agyeman, announced plans for a new national irrigation policy designed to address the challenges posed by climate variability. This policy aims to redefine irrigation practices in the country.

    FSRP is a regional initiative aimed at bolstering food security by supporting key value chain activities, enhancing resilience of agri-food systems, and harmonizing agricultural markets across West Africa. Participating countries include Ghana, Togo, Burkina Faso, Mali, Niger, Chad, Sierra Leone, and Senegal.

    In Ghana, FSRP, implemented by the Ministry of Food & Agriculture (MOFA), focuses on intensifying the production, marketing, and consumption of essential crops and livestock, including rice, maize, broiler poultry, soybeans, and tomatoes.

  • We will continue to support you – World Bank to Ghana over dry spell

    We will continue to support you – World Bank to Ghana over dry spell

    The World Bank has reaffirmed its commitment to supporting farmers in northern Ghana who have been severely impacted by this year’s drought.

    During a tour of the Upper East Region, the World Bank Country Director for Ghana, Liberia, and Sierra Leone, Robert Taliercio O’Brien, encouraged affected farmers to remain resilient despite the challenges.

    O’Brien visited project sites under the West Africa Food System Resilience Programme (FSRP), a World Bank-funded initiative designed to strengthen food systems across Ghana and the sub-region in the face of climate-related agricultural crises. Speaking during interactions with farmers and media, he praised the determination of the farmers he met.

    “As demoralising and heartbreaking as this is, I am highly motivated by the steel purpose and resolve of the indefatigable farmers I have met, to take it all in their stride and forge ahead,” he said. “The World Bank stands with you in these trying times, and we are committed to continuing support to build and promote robust value chain systems to ensure that we emerge steadfast and even stronger during and after unforeseen, unavoidable tests of nature.”

    Communities within World Bank-funded irrigation sites were shielded from the worst effects of the drought, thanks to the irrigation systems that enabled them to engage in dry-season farming. O’Brien, along with teams from the World Bank Ghana and FSRP, inspected several facilities within the Tono Irrigation Scheme, which had been rehabilitated under the Ghana Commercial Agriculture Project (GCAP).

    Among the key areas inspected were the dam wall, reservoir, spillway, and an automated intake structure that regulates water flow into the main irrigation canal. O’Brien also toured a solar-powered facility that delivers water to higher farmlands, engaging with farmers along the way.

    Under the GCAP, the World Bank and the Government of Ghana made significant investments in rehabilitating four major irrigation schemes: the Kpong Irrigation Scheme (KIS), Kpong Left Bank Irrigation Scheme (KLBIS), Tono Irrigation Scheme (TIS), and Vea Irrigation Scheme (VIS). These efforts are now being extended through the FSRP.

    Looking forward, O’Brien highlighted ongoing projects, particularly the completion of work on the Vea and Tono schemes. He assured farmers that the World Bank’s support would go beyond funding, pledging that the institution would remain actively involved on the ground to ensure food security objectives are met. “We shall be with you on the ground, every step of the way; and we shall not relent until our full objective of credible food security has been met.”

    Senior Agricultural Economist of World Bank Ghana and Task Team Leader of FSRP, Ashwini Sebastian, emphasized that irrigation alone was not sufficient to deliver high-quality yields. She stressed the need for other value chain interventions, including the use of climate-smart seeds and innovative farming methods, to boost agricultural productivity.

    FSRP Project Coordinator Osei Owusu-Agyeman added that, in response to climate variability, the program would support the development of a new national irrigation policy aimed at redefining the role of irrigation in Ghana’s agricultural landscape.

    The FSRP is a regional initiative focused on building the resilience of agri-food systems, enhancing preparedness against food insecurity, and promoting harmonized agricultural markets across West Africa. In Ghana, the program is spearheaded by the Ministry of Food and Agriculture, with key interventions in rice, maize, broiler poultry, soybeans, and tomato production.

    Participating countries in the broader program include Ghana, Togo, Burkina Faso, Mali, Niger, Chad, Sierra Leone, and Senegal.

  • World Bank places Nigeria as 3rd largest debtor

    World Bank places Nigeria as 3rd largest debtor

    A financial report released by the World Bank has ranked Nigeria as the third-largest debtor to the Bank’s International Development Association (IDA) as of June 30, 2024.

    The report shows that Nigeria’s debt to the IDA increased to $16.5 billion by the end of June, marking a $2.2 billion rise, or 14.4%, compared to the $14.3 billion owed at the close of 2023.

    The IDA, a critical division of the World Bank, provides low-interest loans and grants to the world’s poorest nations to foster economic growth, reduce inequalities, and enhance living standards. These loans typically come with favorable terms, including long repayment periods and minimal interest.

    At the top of the IDA debtor list is Bangladesh, with $20.5 billion in loans, followed by Pakistan, which owes $17.5 billion.

    Nigeria has overtaken India, which now holds the fourth position with $15.9 billion, down from $17.9 billion in 2023. Ethiopia, Kenya, and Vietnam are next in line, with debts of $12.2 billion, $12.0 billion, and $12.0 billion, respectively.

    The lowest-ranking countries on the list are Tanzania with $11.7 billion, Ghana with $6.7 billion, and Uganda with $4.8 billion.

    “As of June 30, 2024, the ten countries with the highest exposures accounted for 63% of IDA’s total exposure.

    “Monitoring these exposures relative to the SBL requires consideration of the repayment profiles of existing loans, as well as disbursement profiles and projected new loans and guarantees,” the World Bank said. Recall that the Debt Management Office (DMO) reported that Nigeria’s total public debt increased to N121.67 trillion in the first quarter of 2024, compared to the N97 trillion recorded in December 2023.

    According to DMO, the increase was primarily due to new domestic borrowing by the federal government to partly fund the deficit in the 2024 budget as well as disbursements by multilateral and bilateral lenders.

    The debt office said total domestic debt was N65.65 trillion ($46.29 billion), while total external debt was N56.02 trillion ($42.12 billion).

    It is therefore important that we remind you that it is our responsibility to grapple with the apparent challenges that have befallen our nation and its continuing use to beggar and humiliate our people and workers.

    “You must not therefore allow yourself to become an instrument for the pauperization of the workers that you lead. You must not allow this process to be turned into a tool to deprive and cheat already suffering workers from the benefits that may accrue to them. Congress will severely sanction any state council that colludes with employers whether public or private to cheat workers out of their benefits.”

    “I believe that the same mind that was in us at the national level will be in all of you here so that we will have a successful implementation round.”

    As we head to the negotiation table, we must begin to organize and mobilize now. “We must remain vigilant, informed, and united. This Workshop is an essential step in that process.”

    “It is a space for us to discuss strategies, share knowledge, and build the networks that will sustain our efforts towards having a better result than the 2019 cycle. Learn from what we did and be comforted that we have remained unflinching in the face of persecution by the state.”

    Ajaero added “Like we have said before, ours is a divine mandate! God knows the purpose for making us leaders of the labour movement at this time in our nation. We have stood firm and have not betrayed you. You will stand firm, you will not betray workers and you will not betray man. You will not betray God. At the end of the day, the people we lead will define us based on how we handle this exercise – Heroes or betrayers. The choice is ours.”

  • Parliament greenlights 250m dollars loan from World Bank

    Parliament greenlights 250m dollars loan from World Bank

    Parliament has sanctioned a $250 million loan from the World Bank to advance the Ghana Energy Sector Recovery Programme.

    Initially rejected before Parliament’s recess, the loan was a central factor in the emergency recall of Parliament for a two-day session.

    The funds are earmarked for stabilising and revitalising Ghana’s energy sector, tackling persistent financial issues, and ensuring a consistent electricity supply for households and businesses nationwide.

    During the debate, the Minority voiced significant concerns, particularly regarding a $90 million consultancy fee included in the loan agreement.

    They criticised the fee as excessive and called for a more thorough examination before approval.

    Despite these objections, the loan was ultimately approved.

    The majority underscored the critical need for the funding to address urgent energy sector challenges.

    They stressed that the recovery programme is vital for maintaining energy supply, reducing debt, and fostering economic growth.

  • World Bank to release $830m to Ghana pending approval by parliament

    World Bank to release $830m to Ghana pending approval by parliament

    Some US$830 million will be approved by parliament and released by World Bank to Ghana to help with completing various projects before the year 204 comes to an end.

    According to The bank, this will be done in tangent of parliament passing three loan agreements before the House for consideration currently.

    Parliament failed to approve the bill before going on recess but there were also concerns raised by some members, which did not permit the house to agree on some terms.

    The Board of the World Bank has been waiting for the necessary approvals from parliament before the disbursement is done.

    Details of the loan agreement

    The agreement encompasses $250 million for the Ghana Financial Stability Fund and another $250 million for Energy Sector Reforms.

    Part of the loan will be allocated to support drainage projects in the Greater Accra region through the GAMA Water Project, while the rest will fund various initiatives outlined in the budget under the DPO program.

    World Bank Country Director Robert O’Brien stated that the funds will be disbursed based on the procurement procedures approved by the bank’s Board.

    “We have our portfolio and pipeline disbursement to Ghana, which some of these funds will come under. Ghana over the years had a very high disbursement rate, because of how they have handled their funds”, he said

    World Bank on disbursements

    In a conversation with JOYBUSINESS, Mr. O’Brien mentioned that the bank will begin disbursing the funds as soon as the approval is granted.

    “We are hopeful that these facilities will be approved quickly by Parliament so that the expected impact is felt on some critical sectors of the economy”.

    Mr. O’Brien emphasized the Bank’s dedication to assisting Ghana through these difficult times.

    He also announced that in June 2025, the World Bank will approve a billion dollars for Ghana to fund crucial projects that will be outlined in the budget.

  • World Bank to review Ghana’s debt distress status after deal with external commercial creditors

    World Bank to review Ghana’s debt distress status after deal with external commercial creditors

    World Bank Country Director Robert O’Brien has revealed that Ghana’s classification as high debt distress country will be reviewed as soon the country reaches a deal with the external commercial creditors.


    Mr. O’Brien noted that there are some technicalities surrounding the debt classification processes for countries.
    This, he explained is the reason the progress made in reaching an Agreement in Principle with the bilateral creditors did not reflect in the latest Debt Sustainability Analysis done on the country.

    He disclosed this on PM EXPRESS Business Edition with host George Wiafe.

    “The Bank is satisfied with the progress that Ghana is making when it comes to the negotiations that government is having with external creditors. As long as it is in line with the IMF programme, that should impact on the analysis”, he said.

    Background

    In the latest Debt Sustainability Analysis published in July 2024, the International Monetary Fund (IMF) and the World Bank have confirmed Ghana’s status as a country in debt distress.

    The joint report from the Bretton Woods Institutions indicated that Ghana remains classified as such because it has not yet finalized the restructuring of its external commercial debt as required by the IMF-supported program.

    They noted that significant financing gaps persist, which need to be addressed through a debt restructuring process with commercial creditors, in line with the Debt Sustainability Analysis and IMF guidelines.

    According to data released by the Ministry of Finance on the debt repayment freeze as of December 2022, Ghana’s total external debt amounts to $20 billion. This includes $5.4 billion in bilateral external debt, $13.1 billion owed to Eurobond holders, and $10.4 billion to multilateral creditors.

    Outlook for Ghana’s Economy

    Mr. O’Brien said the World Ban is currently satisfied with measures taken by government to help stabilize the economy.

    “When we look at some of the major indicators, there has been a much improvement from last year. One can talk about inflation rate”, he said.

    He however maintained that the major concern is hinged on election related spending.

    “I think that is the biggest threat to the current economic recovery. How is government going to manage the elections when it comes to expenditure”, he said.

    “Government has given the assurance that it is committed to fiscal prudence and we hope that they stick to that assurance that it has given to the donors, investors and Ghanaians”, he said.

    Asked whether the economy is on the right path, Mr. O’ Brien said “there are indeed clear signs of economic recovery and all the indicators are supporting that claim”.

  • There’s more to do – World Bank tells govt amid economic recovery signs

    There’s more to do – World Bank tells govt amid economic recovery signs

    The World Bank has entreated the Government of Ghana to be cautious despite the progress toward economic recovery, particularly in areas such as inflation control, debt restructuring, and fiscal consolidation.

    World Bank Country Director, Robert Taliercio O’Brien, praised the government’s efforts but stressed that further work is essential to fully stabilize the economy.

    In an interview on Joy News’ PM Express on Thursday, O’Brien commended the government’s policies that have led to a downward trend in inflation.

    “Inflation has been reduced, so it’s on a declining path, and it needs to keep declining. It’s still too high, but good progress is being made, thanks in part to the policy position of the government,” he explained.

    The World Bank official also highlighted Ghana’s progress on debt restructuring, a critical reform area.

    “Ghana implemented the domestic debt restructuring in 2023 and reached an agreement under the G20 Common Framework with its official creditors,” O’Brien noted.

    He emphasized that a Memorandum of Understanding for restructuring official bilateral debt has been established and is actively progressing.

    O’Brien further pointed out that as of June, the government had reached an agreement in principle with commercial bondholders, marking another significant step in the debt restructuring process.

    “So again, very good progress, but more to do,” he stated, underscoring the need for continued efforts in this area.

    In addition to debt restructuring, O’Brien commended the government’s fiscal consolidation efforts, which led to a notable reduction in public spending.

    “We saw very important measures taken by the government to reduce expenditures last year, which resulted in a 7.9 percentage point decrease in spending,” he said, describing this as a critical step toward restoring fiscal discipline.

    Despite these achievements, the World Bank official urged the government to remain focused on addressing the remaining challenges.

    “There’s more to do,” O’Brien reiterated, acknowledging the progress made while emphasizing that the road to full economic recovery requires sustained commitment.

  • You’re not NDC’s World Bank for nothing, thanks for standing behind us – Mahama to Volta Region

    You’re not NDC’s World Bank for nothing, thanks for standing behind us – Mahama to Volta Region

    The 2024 Presidential Candidate of the National Democratic Congress (NDC), John Mahama, has emphasized that the party deeply values the unwavering support it has consistently received from the Volta Region.

    He acknowledged the region’s significant contributions, particularly in terms of the high percentage of votes it has delivered for the NDC in general elections since the establishment of the 4th Republic.

    “We want to thank the Volta Region for standing behind the NDC over the years. We don’t take your support for granted,” Mahama said. He highlighted that the NDC doesn’t refer to the Volta Region as its “World Bank” lightly. “We call Volta Region the World Bank not because your votes are the highest in nominal terms. Because if you take the votes of Greater Accra, they are higher, but of course, the population of Greater Accra is much bigger. But when it comes in percentage terms, no region comes close to Volta Region,” he explained.

    Mahama also pointed out that the NDC, during its time in government, ensured that the Volta Region received its fair share of development projects. He noted investments in various sectors, including education, health, transport, road infrastructure, sanitation, water, and agriculture, which have significantly improved the lives of the people in the region.

    “You can’t quantify the level of transformation it has had on the lives of the people,” he added.

    The NDC leader criticized the governing New Patriotic Party (NPP) for abandoning projects initiated by the NDC, which he believes has negatively impacted the region.

    He accused the NPP of using propaganda to sway voters, pointing out how they enrich a few individuals to create the illusion of broader benefits.

    “They will come and point to you, ‘you see this one, since he joined NPP, you see his life has changed, you have been following NDC, what have you got?’” Mahama lamented, urging voters not to fall for such tactics.

    As the election approaches, Mahama advised the electorate to be wary of vote-buying schemes and reminded them of the hardships they have endured under the Akufo-Addo-Bawumia administration.

    “They are going to come with the money again… But remember that you have lived 8 years of poverty, 8 years of hardships, and that whatever money they give you will not alleviate the crisis into which they have plunged you,” he warned.

    Looking ahead, Mahama promised that an NDC government would continue its focus on infrastructure development in the Volta Region and would invest in tourism, agriculture, and industry to create jobs.

    He also pledged to build modern markets, including a significant one in Aflao, to boost trade and improve the livelihoods of the people. Furthermore, he assured that the NDC would implement a homegrown fiscal consolidation program to help revive the nation’s economy.

  • IMF, World Bank funds to stabilize cedi amid seasonal and economic pressures

    IMF, World Bank funds to stabilize cedi amid seasonal and economic pressures

    As the third-quarter demand season approaches in less than six weeks, there are growing concerns about its potential effects on the cedi, which has experienced fluctuations against major trading partners.

    Although the cedi has demonstrated relative stability in recent months, partly due to central bank interventions, analysts caution that the currency is still susceptible to shocks.

    The approaching elections and the expected rise in government spending present notable risks.

    “It is important to note that the IMF Programme, while serving as a check on government’s expenditure also provides opportunity to boost Ghana’s foreign reserves.

    “This, together with other inflows expected from the World Bank Development Policy Operation (DPO), might help absorb some of the FX shocks associated with the December festivities Deloitte said in its commentary on the 2024 mid-year budget.

    The cedi depreciated by 18.6 percent, 17.9 percent and 16 percent against the dollar, pound and euro as at end-June 2024, according to official data.

    The cedi’s depreciation was largely on account of the dollar strengthening against major trading currencies, high demand for foreign exchange from businesses, coupon payments on bonds issued in February 2024 and speculative activities, Deloitte noted.

    Nonetheless, corporate demand for dollars, particularly in the run-up to the festive season, continues to be a challenge despite the cedi remaining stable for the most part of last week, buoyed by a US$10mn Bank of Ghana’s spot market support.

    However, persistent corporate demand pressures put the cedi on the back-foot at the tail end of the week’s trading.

    Consequently, the local unit shed 0.47 percent against the American greenback over the week to end trades at GH¢15.95 to US$1 on the retail market.

    “The GBPGHS and EURGHS also dipped by 0.25 percent and 1.31 percent week-on-week respectively on the retail market,” Databank Research said in a note.

    Analysts emphasize the need for the government to focus on export diversification and trade finance strategies to mitigate the cedi’s susceptibility to external shocks.

    Earlier this month, the Bank of Ghana’s new centralized foreign exchange trading platform was implemented. This system mandates that individuals wishing to buy or sell foreign currencies must present a valid national ID, such as a Ghana Card or passport for foreigners, and undergo biometric verification.

    In addition, the Bank of Ghana plans to sell US$20 million to Bulk Oil Distributing Companies in this week’s foreign exchange auction.

    “We expect the auction to help tame some corporate demand pressures on the market and slow the cedi’s depreciation,” Databank added.

  • World Bank hails Ghana for generous tax treatment of retirement funds

    World Bank hails Ghana for generous tax treatment of retirement funds

    The World Bank, in its eighth Ghana Economic Update, revealed that Ghana’s tax treatment of retirement funds is among the most generous globally, resulting in a significant loss of revenue for the government.

    The report notes that, on an international scale, pension taxation policy typically revolves around three key decisions: whether to Exempt (E) or tax (T) contributions to a retirement fund, whether to Exempt (E) or tax the interest or gains earned from these funds, and whether to Exempt (E) or tax withdrawals from the funds upon retirement.

    In Ghana, contributions to retirement or pension schemes, as well as the benefits received from them, are entirely tax-exempt.

    “Withdrawals of accrued benefits from a provident fund or personal pension scheme are tax exempt. Benefits from the Social Security and National Insurance Trust are also tax exempt.”

    “As a result, Ghana runs a generous EEE model. In addition, employer contributions are tax deductible, and additional contributions up to a maximum of 16.5 %t of a contributor’s monthly income are tax deductible for the purposes of determining the income of the contributor or their employer effectively lowering the taxable income”, it added.

    Several investments are tax exempts

    Additionally, the World Bank report highlighted that several forms of investment income, typically benefiting high-income individuals, are exempt from taxes. This exemption diminishes both the progressivity and effectiveness of the personal income tax (PIT) system.

    “Investment income that is exempt from taxation includes interest paid to an individual by financial institutions; interest on Ghanaian sovereign bonds; and interest or dividends paid to members of approved unit trusts or mutual funds. Moreover, an extensive withholding tax regime applies to payments from transactions made by business entities, simplifying tax management but also opening up opportunities for potential abuse: for example, rent derived from residential properties attracts a lower withholding rate (8.0%) than that from commercial properties (15%)”.

    This it said creates an incentive to misclassify commercial properties as residential.

  • Excessive tax exemptions unhealthy for Ghana’s economy – World Bank to gov’t

    Excessive tax exemptions unhealthy for Ghana’s economy – World Bank to gov’t

    The World Bank has raised concerns that Ghana’s tax system is underperforming due to excessive tax exemptions and reliefs that significantly reduce the corporate income tax (CIT) base.

    According to the institution, these generous tax breaks are hindering the country from maximizing its revenue potential.

    From 2015 to 2020, Ghana missed out on an average of about 1.3% of its Gross Domestic Product (GDP) in corporate tax revenue each year.

    The World Bank highlighted that the existence of over two dozen different types of tax breaks for companies is a major contributor to this shortfall.

    The World Bank estimates that these tax breaks are costing Ghana around 0.5% of its GDP in lost revenue annually.

    “By reducing or eliminating some of these generous tax breaks, Ghana could improve its tax system and collect more revenue from corporate taxes,” the institution noted in its 8th Ghana Economic Update.

    The Exemptions Act, 2022 (Act 1083), was presented to Parliament by the former Minister for Finance, Ken Ofori-Atta, in 2022.

    In 2021, the Ministry of Finance initiated processes to secure approximately $335,072,712.13 in tax exemptions for 42 companies under the government’s One District One Factory (1D1F) initiative. 

    Parliament in July 2024, approved the first of numerous tax waivers before the House, which the Finance Committee was previously blocking.

    The approved tax waiver amounts to €1.5 million for the supply and installation of e-learning laboratories in Senior High Schools across the country.

    Ghana’s personal income tax (PIT) accounts for approximately 15% of the country’s total tax revenues, which is below the Sub-Saharan Africa (SSA) average of 18%. As of 2020, the country’s PIT revenue was equivalent to 2% of GDP, compared to the SSA average of 3.5%, highlighting a gap between actual and potential PIT revenue of more than 2% of GDP.

    Payroll taxes constitute over 99% of total PIT proceeds, with other forms of PIT, such as taxes on capital gains, investment income, and business income of the self-employed, making up less than 1% of the total—a stark contrast to more than 30% in some lower-middle-income countries (LMICs) like India.

    In 2022, fewer than 25% of Ghanaians of voting age (18 and older) paid payroll taxes under the Pay-As-You-Earn (PAYE) scheme, and less than 0.2% declared any business income. This is in sharp contrast to countries with high PIT productivity, such as Norway, Sweden, and Canada, where almost 100% of the voting population files PIT returns.

  • About 5.5m Ghanaians risk being homeless due to degradation in coastal areas – World Bank

    About 5.5m Ghanaians risk being homeless due to degradation in coastal areas – World Bank

    An estimated 5.5 million coastal residents in Ghana are grappling with significant challenges due to severe erosion and flooding, affecting 80% of the country’s coastline.

    The World Bank reports that some coastal areas are eroding at rates of 4 to 12 meters annually.

    The economic impact of this coastal degradation is substantial, costing approximately 4% of Ghana’s Gross Domestic Product (GDP) each year.

    This ongoing issue threatens local communities, ecosystems, and biodiversity, as highlighted by Naila Ahmed, Sustainable Development Programme Leader at the World Bank.

    “Coastal degradation costs government and the country about 4% of its GDP each year, threatening communities, ecosystems and biodiversity,” she noted in an address on behalf of the World Bank Country Director for Ghana, Liberia and Sierra Leone.

    Ahmed made these remarks during the launch of the West Africa Coastal Areas Resilience Investment Project II (WACA ResIP 2) in Accra.

    The project, supported by a $150 million World Bank loan and a $5 million grant, aims to enhance the resilience of targeted coastal communities and ecosystems, thereby safeguarding livelihoods and natural resources.

    Minister of Environment, Science, Technology and Innovation (MESTI) Ophelia Mensah-Hayford emphasized the urgent need to address coastal erosion exacerbated by climate change.

    She stressed the importance of managing Ghana’s coastal zones for sustainable development and climate resilience, acknowledging the significant role of the WACA ResIP in restoring these areas.

    “The core objective of WACA ResIP is to address coastal erosion, flooding, pollution and ecosystem vulnerability, both nationally and regionally. The programme integrates activities of countries and regional institutions to achieve transformational and sustainable change in coastal zone management.

    “It is a multifaceted approach that aims to strengthen the resilience of targetted communities and areas in coastal West Africa by engaging countries through technical assistance, finance and dialogue.

    “This project directly responds to Nationally Determined Contributions (NDCs) in coastal areas, which are among the most climate-vulnerable habitats,” the minister explained.

    The WACA ResIP initiative focuses on mitigating coastal erosion, flooding, pollution, and ecosystem vulnerability on both a national and regional scale.

    It aims to foster transformational and sustainable change in coastal management through technical assistance, financial support, and regional collaboration. The project aligns with Nationally Determined Contributions (NDCs) for climate adaptation in vulnerable coastal areas.

    In Ghana, the WACA ResIP will tackle erosion and flooding through specific interventions at Korle Lagoon, Densu Delta, and the Keta Lagoon Complex.

    At Korle Lagoon, the project will enhance ongoing efforts to construct a jetty, prevent sediment buildup, and stabilize embankments.

    In the Densu Delta, the focus will be on improving spatial planning and enforcement to protect the delta ecosystem and bolster buffer vegetation.

    The Keta Lagoon Complex will see initiatives aimed at reforestation, particularly in mangrove areas affected by saline intrusion and sea-level rise, alongside efforts to address erosion throughout the complex.

    The project is designed to go beyond environmental remediation by creating job opportunities and contributing to national socio-economic development. Collaboration among government partners, the private sector, development partners, and civil society is crucial for the project’s success.

    Prof. Patrick K. Agbesinyale, Chief Director of the Ministry of Lands and Natural Resources, and the Awomefia of Anlo State, Togbe Sri III, have both underscored the importance of this initiative for local communities and pledged their support for its effective implementation.

    Since the 1960s, Ghana has experienced a temperature rise of about 1°C, with projections indicating further increases between 1°C and 3°C by mid-century, and between 2.3°C and 5.3°C by the end of the century.

    This warming trend is expected to intensify heavy rainfall, leading to more frequent flooding, flash floods, and riverbank erosion. Coastal communities in Africa, including Ghana, face increasing threats from erosion, flooding, and pollution, which undermine both physical landscapes and socio-economic stability.

  • World Bank gives Ghana $155 million to restore degraded coastal areas

    World Bank gives Ghana $155 million to restore degraded coastal areas

    Ghana has secured $155 million to aid in the restoration of its damaged coastal regions.

    This funding includes $150 million in financial aid and an additional $5 million grant, both designed to address the impacts of natural and man-made disasters on the country’s coastal communities.

    Mrs. Naila Ahmed, the Programme Leader for the World Bank in West Africa, shared this information during the launch of the West Africa Coastal Areas (WACA) Resilience Project II in Accra.

    The project, organized by the Ministry of Environment, Science, Technology, and Innovation (MESTI), aims to combat coastal erosion in Ghana.

    The launch event was attended by representatives from the World Bank, WACA, the Ministry of Finance, Civil Society Organizations, MESTI, and the Ministry of Lands and Natural Resources.

    Mrs. Ahmed highlighted that 5.5 million people living along Ghana’s coastline face severe challenges, with 80 percent of the coastline being highly susceptible to erosion and flooding.

    She noted that these issues were deeply troubling. The first phase of the WACA project had already improved conditions for 27,000 households, making them less vulnerable to coastal erosion and flooding.

    “Over 27,000 hectares of natural habitat in the coastal zone has been restored. 4,200 people have benefited from social sub-projects with 75 per cent of them being women,” she said.

    The Programme Leader said while the chal­lenges facing coastal communities are signifi­cant, they could be achieved through collective action.

    “By working together, we can build a resilient and sustainable future for our coastal communities, protecting livelihoods, ecosys­tems, and infrastructure from the impacts of climate change and coastal erosion,” she said.

    Mrs. Ophelia Mensah-Hayford, the Minister of Environment, Science, Technology, and Innovation (MESTI), has confirmed that Ghana has received the funds for coastal restoration.

    She highlighted that approximately 500,000 people across Africa are impacted annually by intensified coastal erosion, flooding, and pollution. The new financial support is expected to significantly alleviate these coastal challenges in Ghana.

    “These coastal disasters threaten the physical landscape and destabilise our coastal community’s socio-economic resources. The situation along the coast of Ghana has further been exacerbated by climate change and this menace cannot be underestimated,” she said.

    She said that challenges like flooding under­mined spending on education, health, climate and other developmental priorities, thereby weakening the livelihoods of millions of coast­al dependent households.

    “In a country with an economy historically driven by high resilience and natural resources, managing Ghana’s coastal zone environment is crucial for sustainable development and climate resilience,” she said.

    The minister said that the project sought to integrate the activities of countries and regional institutions to achieve transforma­tional and sustainable change in coastal zone environment.

  • How Minority in Parliament obstructed approval of a $250m World Bank loan

    How Minority in Parliament obstructed approval of a $250m World Bank loan

    The Minority in Parliament thwarted the approval of a $250 million loan from the World Bank by casting ‘no’ votes.

    The loan, intended for the Energy Sector Recovery Programme, was to be approved on the last day of the session based on the Finance Committee’s consensus.

    Isaac Adongo, the Finance Committee’s Ranking Member, noted that a large portion of the funds was earmarked for consultancy services, which he found concerning.

    He suggested that the House approve the loan only after amending the disbursement formula.

    Mohammed Muntaka Mubarak, the MP for Asawase, also questioned the loan’s allocation.

    He expressed confusion over why some of the funds were not designated to enable universities like KNUST in Ghana to manufacture their own meters.

    Patrick Boamah provided further details about the loan to the House.

    After these discussions, Speaker of Parliament Alban Bagbin called for a vote.

    He said, “Those in favor say ‘aye’ and those against say ‘no.’”

    For clarification, he put the question again before the House and concluded, “Well, definitely the nos have it. From the voice vote, the nos have it.”

    Following the verdict, Patrick Yaw Boamah, the Committee Chairman, expressed doubt that the opposition had sufficient support.

    The Speaker then inquired whether the Majority wished to proceed with a headcount or a division.

    The Deputy Majority Whip later explained that their members had not responded affirmatively to the motion due to confusion over the voice vote; he suggested that a new vote would resolve the issue.

    Before announcing his decision, the Speaker had previously mentioned that the House would adjourn on June 30, commenting on the numbers involved.

    “I have always drawn the attention of the leader of government business, who himself is not even now available. Because you always need numbers behind you when you are taking some stands on issues on the floor. Those numbers are not there, and those who support you to run your business, you will run at them, and so when they react, the result will not be in your favor. Clearly, this is what has happened, and there is no way the Speaker can preside and be pretending to be doing the right thing when everybody will see it so visibly that it is wrong for the Speaker. So, I will do what is right, and truly the nos had it, and the motion is accordingly rejected.”

    Patrick Boamah then rose again to challenge the decision of the Speaker.

    However, the Speaker said the best course of action was for the House to adjourn sine die, and that was what he proceeded to do.

  • Liabilities in cocoa and energy sectors could affect Ghana’s “modest recovery” – World Bank

    Liabilities in cocoa and energy sectors could affect Ghana’s “modest recovery” – World Bank

    The World Bank’s latest Ghana Economic Update indicates that while the country has made “steady progress” towards economic stabilization, significant liabilities in the cocoa and energy sectors could pose risks to Ghana’s “modest recovery.”

    Released on Monday, July 22, the eighth edition of the report attributes the recent economic improvement to a firm monetary policy stance, comprehensive debt restructuring, and a series of structural reforms aimed at supporting long-term growth.

    Despite this, the report points out that challenges such as financial sector stress and contingent liabilities in critical sectors like cocoa and energy could impact the economy’s stability.

    Mr. Stefano Curto, Lead Economist for Ghana, Liberia, and Sierra Leone at the World Bank, noted that the macroeconomic situation has seen considerable improvement over the past year.

    “Growth in 2023 was more resilient than projected, reaching 2.9 percent. Ghana has made commendable strides on fiscal consolidation,” Curto stated.

    However, he emphasized that the sustainability of these efforts is contingent on enhancing the country’s tax revenue while minimizing the impact on growth and the vulnerable populations.

    The report stresses the need for robust measures to enhance tax revenue mobilization and the full implementation of policies related to the ongoing $3 billion International Monetary Fund (IMF) loan-support program.

    Mr. Curto recommended streamlining the complexities associated with personal income tax, Value Added Tax (VAT), excise duty, and corporate income tax, as well as rationalizing tax exemptions.

    Economist Mr. Kwabena Gyan Kwakye projected a 3.1 percent growth for Ghana by the end of 2024, with the potential for economic growth to reach 5 percent by 2025 if stabilization efforts are fully implemented. He also called for continued efforts in expenditure management to sustain economic progress.

    Dr. Alex Ampaabeng, Deputy Finance Minister, acknowledged the challenges in the country’s tax administration system but assured that reforms were underway to enhance domestic revenue mobilization.

    He highlighted the National Revenue Policy and a medium-term revenue strategy designed to adapt to the evolving business landscape.

    Dr. Ampaabeng mentioned that the Ministry of Finance is collaborating with the Ghana Revenue Authority (GRA) on data cleansing to better identify and engage taxpayers. Currently, Ghana’s database includes approximately 7.4 million taxpayers, with 1.9 million active and 5.4 million inactive.

  • World Bank lauds BoG’s independence and effective policy reforms in new CPIA report

    World Bank lauds BoG’s independence and effective policy reforms in new CPIA report

    The World Bank has praised the Bank of Ghana for its independence, which has been crucial in the success of various policy reforms aimed at mitigating inflationary pressures on the Ghanaian economy.

    This acknowledgment was featured in the World Bank’s most recent Country Policy and Institutional Assessment (CPIA) report, titled ‘CPIA Africa 2024: Structural Reforms for a Vibrant Private Sector.’

    The report noted that the Ghanaian government, in conjunction with the Bank of Ghana and other governments and central banks across sub-Saharan Africa, has effectively shifted from managing global shocks to strengthening credibility, capacity, and transparency.

    “A reflection of this is the region’s strong performance across multiple measures of Central Bank independence – an institutional provision that improves countries’ ability to reduce inflation and can improve investors’ perception of risks,” the CPIA report stated.

    The World Bank highlighted that Ghana’s dedication to policy reforms aimed at enhancing the central bank’s independence has enabled the Bank of Ghana to pursue a stringent monetary policy.

    This approach involved increasing reserve ratios and executing a fiscal reform program, which effectively decreased year-over-year inflation from 54% in December 2022 to 23% in December 2023.

    The report emphasized, “Ghana’s reforms around central bank independence were complemented by halting monetary financing of the deficit, which contributed to curbing inflation from over 50% in 2022 to 23.2% in December 2023.”

    The CPIA also reported that the average score for monetary and exchange rate policies in the region rose to 3.4 in 2023, with notable improvements in the scores of six countries, including Ghana, Mauritania, Nigeria, Somalia, and Zambia.

    Regarding fiscal transparency and responsibility, the report recognized Ghana’s efforts to reintroduce its fiscal rule for the medium term and to enhance the independence of its Fiscal Council. This initiative aims to bolster the credibility of the council’s macro-fiscal assumptions and adherence to the fiscal rule.

    The CPIA functions as an annual assessment tool for countries eligible for funding from the International Development Association (IDA), the World Bank’s branch dedicated to supporting the world’s poorest nations.

    Andrew Dabalen, World Bank Chief Economist for Africa, remarked, “the CPIA review offers a chance to identify areas of relative weakness and engage in a dialogue around policy reforms that can produce better development outcomes.”

    The 2024 CPIA report strongly underscores the importance of attracting and maintaining increased private sector investment.

    “Private sector investments will need to pick up after years of investment growth coming from the public sector. High interest rates and public debt mean that the public sector can’t continue to do the heavy lifting, but there are huge opportunities around trade and the digital economy,” said Nicholas Woolley, the CPIA report’s main author.

    As Ghana advances with these reforms, the World Bank’s recognition highlights the crucial role of upholding central bank independence and fiscal responsibility for achieving long-term economic growth and stability.

  • World Bank supports COCOBOD’s cocoa rehabilitation with $100m

    World Bank supports COCOBOD’s cocoa rehabilitation with $100m

    The Ghana Cocoa Board (COCOBOD) has successfully obtained a US$100 million financing facility from the World Bank, aimed at rehabilitating aged cocoa farms across six key cocoa-growing districts in the country.

    The project will cover Assin Fosu, New Edubiase, Nkawkaw, and Juaso districts.

    This four-year initiative focuses on rejuvenating cocoa farms by cutting down trees that have lived for over 20 years, preparing the land, and providing necessary planting materials such as seedlings and plantain suckers.

    The Chief Executive Officer of COCOBOD, Mr. Joseph Boahen Aidoo, shared these details during a media interaction on July 4, 2024, as part of a field visit to farms in Assin Fosu in the Central Region.

    During the visit, aimed at evaluating the efforts of extension officers and government interventions, Mr. Boahen Aidoo explained that while the trees to be cut down are not diseased, they have outlived their productive lifespan, with some exceeding 30 years and becoming unproductive.

    “Once cocoa hits 20 years and above, it has spent its life span, and from that stage, you realise that it bears no fruits, no pods, and the flowers don’t come, yet the farmer would be maintaining such a farm, and this is not productive,” he noted.

    The rehabilitation project is expected to rejuvenate these farms, thereby boosting cocoa production. COCOBOD will support farmers with plantain suckers and labor for planting, along with providing extension officers to educate and assist farmers in managing their farms for optimal yields.

    Mr. Boahen Aidoo emphasized the necessity of comprehensive support, noting that simply providing seedlings would not be sufficient for the farmers to achieve the desired outcomes.

    Highlighting the scale of the project, he mentioned an example where farmers were working on a 30-hectare farm.

    “If you cut the trees from this 30-hectare land, and you want the farmer to provide plantain suckers within one year, they cannot. That’s why we’re supporting them,” he explained. He also referenced a similar project executed with support from the African Development Bank (AfDB), which aimed to combat the Cocoa Swollen Shoot Virus Disease (CSSVD).

    During the visit, farmers urged the government to expedite the construction of roads in cocoa-growing areas to facilitate the transport of produce and reduce post-harvest losses.

    They also called for more extension officers, acknowledging the significant help provided by these officers in their farming activities.

    Nana Kweku Appotoi IV, Aboabohene of Assin Nyankomase, lamented the poor road conditions in cocoa-growing communities and urged COCOBOD to lead efforts in improving the infrastructure.

    Responding to these concerns, Mr. Boahen Aidoo assured farmers that the government would allocate funds to improve roads in cocoa-growing areas following recent increases in cocoa prices.

    He advised farmers on best practices, such as avoiding cocoa cultivation in sandy and clay soils, not burning weeds, and using tree branches as mulch rather than selling them as firewood.

    He also cautioned against the use of harmful weedicides and materials like poultry manure, which can damage soil health and reduce crop yields.

    Mr. Boahen Aidoo highlighted COCOBOD’s efforts to equip farmers with modern tools, noting that since 2020, they had procured about 100,000 motorized slashers and pruners to help clear cocoa farms and increase production. He encouraged farmers to access these tools from various district offices.

    Additionally, he pointed out that COCOBOD had improved the extension officer-to-farmer ratio from one officer per 3,000 farmers to one officer per 600 farmers, nearly meeting the Food and Agriculture Organization’s (FAO) standard of one officer per 500 farmers.

  • Ghana’s Audit Service performance drops from ‘C’ to ‘D’ – World Bank

    Ghana’s Audit Service performance drops from ‘C’ to ‘D’ – World Bank

    The World Bank has downgraded Ghana’s Audit Service performance rating from a “C” to a “D”, citing deficiencies in its independence according to global standards.

    This change follows the assessment of the Supreme Audit Institution’s autonomy in the World Bank’s 2023 report on Governance Independence and Accountability.

    Ghana’s independence score dropped to 6.5 out of 10, indicating moderate independence, a decline from the previous range of 8.0–8.5 in 2021.

    While the Audit Service met expectations in several areas, there are identified areas for improvement.

    In response, the World Bank suggests implementing standardized operating procedures, enhancing training and resource allocation, and fostering collaboration among stakeholders to bolster independence.

    Furthermore, it underscores the importance of conducting all mandated audit types as per Ghanaian law to ensure transparency and effective use of public funds.

    Additionally, to enhance understanding and resolution, spending managers are urged to conduct root-cause analyses of audit issues and ensure clear communication of findings.

  • Ghana sees decline in ranking on World Bank’s Supreme Audit Institutions Independence Index

    Ghana sees decline in ranking on World Bank’s Supreme Audit Institutions Independence Index

    Ghana has experienced a decline in its ranking on the World Bank‘s Supreme Audit Institutions Independence (SAIs) Index for the year 2023, scoring a D (6.5) compared to its previous score of C (8.0-8.5) in 2021.

    This decrease signifies that while some independence indicators were met, there remains significant room for improvement in the independence of Ghana’s Supreme Audit Institutions.

    The SAIs Independence Index, launched by the World Bank in July 2021, is a methodological tool designed to measure the independence of supreme audit institutions globally.

    The index evaluates SAIs against ten indicators, including legal, financial, mandate, and coverage aspects. The assessment is based on a benchmarking exercise against international standards and practices, providing options for reforms to enhance SAI independence.

    The World Bank’s evaluation highlights several areas where Ghana’s SAI independence can be strengthened. Policy recommendations include reinforcing existing policies and incorporating several INTOSAI principles into the legal framework. Specific recommendations include:

    1. Establishing clear Standard Operating Procedures (SOPs) to clarify the audit recommendation follow-up processes for all stakeholders.
    2. Equipping Internal Audit Units (IAUs) with the necessary training, office equipment, and relevant tracking databases to perform their duties effectively.
    3. Promoting effective collaboration between the Internal Audit Agency (IAA), IAUs, Audit Committees, Spending Officers, and the Public Accounts Committee (PAC) through stakeholder dialogues.
    4. Refocusing attention on all types of audits as mandated by Ghanaian law to encourage probity and accountability in governance and the deployment of public resources.
    5. Enhancing the effectiveness of audit follow-ups, which are legally the responsibility of Audit Committees, Internal Audit Agencies, Spending Officers, and the PAC, as stipulated by the PFM Act, 2016 (Act 921).

    Despite legal requirements, the follow-up on audit recommendations has not been effectively managed or tracked.

    The assessment also calls for Spending Officers to undertake a root cause analysis of audit issues and communicate these clearly to enhance understanding and increase the likelihood of resolving identified infractions and irregularities.

  • Ghana sees demotion as it moves from grade ‘C’ to ‘D’ in World Bank’s latest assessment

    Ghana sees demotion as it moves from grade ‘C’ to ‘D’ in World Bank’s latest assessment

    Ghana has dropped further from the grade “C” it scored in 2021 on the independence of its Supreme Audit Institution (SAI) i.e., the Auditor General’s Office to a “D” in the latest World Bank assessment covering the period 2023 to 2024.

    According to the World Bank’s Independence and Accountability in Governance report, which evaluates the independence of Ghana’s SAI and the audit recommendation follow-up process, Ghana received a score of 6.5 (a “D”) using the InSAI methodology.

    This marks a significant drop from the “C” grade (8.0-8.5/10) Ghana achieved in the 2021 Global Synthesis Report by the World Bank.

    The “D” rating suggests moderate SAI independence, indicating that while some independence indicators were met, there is substantial room for improvement.

    The assessment, based on benchmarking against international standards and practices, offers recommendations for enhancing the independence of Ghana’s SAI.

    Ghana is urged to establish clear Standard Operating Procedures (SOPs) to clarify the audit recommendation follow-up processes for all stakeholders. Additionally, it is recommended to provide Internal Audit Units (IAUs) with necessary training, office equipment, and relevant tracking databases to improve their effectiveness.

    The report also highlights the issue of non-implementation of audit recommendations.

    “There is the need to refocus attention on all types of audits as required by the laws of Ghana, to encourage and promote probity and accountability in governance and the deployment of limited public resources in the best interest of the public.

    The PFM Act, 2016 (PFMA) Act 921 places the responsibility of audit follow-up on Audit Committees, Internal Audit Agencies, Spending Officers, and the Public Accounts Committee (PAC).

    Despite the legal requirements, audit recommendations are not effectively followed up on or tracked.’, the World Bank asserts.

    The assessment finally calls for Spending Officers to undertake a root cause analysis of audit issues and communicate these clearly to enhance understanding and increase the likelihood of resolution of identified infractions and/or irregularities.

  • World Bank grants $250m to support Ghana’s financial sector

    World Bank grants $250m to support Ghana’s financial sector

    The World Bank has sanctioned a $250 million credit from the International Development Association (IDA) for the five-year Ghana Financial Stability Project.

    This initiative will bolster Ghana’s Financial Sector Strengthening Strategy (FSSS) by enhancing financial stability through the recapitalization of viable banks and Specialized Deposit-taking Institutions (SDIs) affected by Ghana’s Domestic Debt Exchange Program (DDEP).

    The financial system is vital to the Ghanaian economy, offering essential services to households, businesses, and the government, and facilitating economic growth.


    To mitigate the severe impacts of the Domestic Debt Exchange Program (DDEP) on financial institutions, the government established the Ghana Financial Sector Stability Fund (GFSF) to provide solvency support to banks, pension funds, insurance companies, fund managers, and collective investment schemes.

    “This project will enhance Ghana’s financial stability by providing solvency support to banks and SDIs impacted by the DDEP through the GFSF,” said Robert R. Taliercio, World Bank Country Director for Ghana, Liberia, and Sierra Leone. “By directly supporting banks and SDIs, the project will benefit Ghana’s financial sector and the economy, ensuring depositors and other financial consumers have access to savings, payments, and other core financial services from adequately capitalized banks and SDIs.”

    The Ghana Financial Stability Project is expected to immediately assist eligible undercapitalized but viable banks and SDIs and will be available to other banks and SDIs that may require support in the future due to potential new losses, thus providing a safety net against unexpected financial setbacks.

    “The World Bank Group’s support aims to mitigate short-term shocks and improve prospects for long-term sustainable development and resilience against future challenges. The project promotes financial stability, crucial for protecting individuals and preserving jobs,” said Carlos Leonardo Vicente, Senior Financial Specialist and Team Lead.

    The project complements the World Bank’s Development Program Financing series and the IMF-Extended Credit Facility, which support reforms to enhance the macroeconomic environment, enabling financial institutions to operate profitably and generate internal capital.


    It also aligns with other World Bank-funded projects aimed at economic recovery and job creation in Ghana, such as the Ghana Development Financing Project, which supported the establishment of the Development Bank of Ghana and provides long-term financing to small and medium enterprises and small corporates.

  • Ghana secures a $250 million credit facility from the World Bank

    Ghana secures a $250 million credit facility from the World Bank

    On Friday, May 31, the World Bank greenlit a $250 million International Development Association (IDA) credit for a five-year Ghana Financial Stability Project.

    This initiative aims to bolster Ghana’s Financial Sector Strengthening Strategy (FSSS) by bolstering financial stability through the recapitalization of viable Banks and Specialized Deposit-taking Institutions (SDIs) affected by Ghana’s Domestic Debt Exchange Program (DDEP).

    Given the pivotal role of the financial system in the Ghanaian economy, providing essential services to households, firms, and the government while fostering economic growth, addressing the significant repercussions of the DDEP on financial institutions was imperative. Consequently, the Government established the Ghana Financial Sector Stability Fund (GFSF) to extend solvency support to banks, pension funds, insurance companies, fund managers, and collective investment schemes.

    “This project will contribute to Ghana’s financial stability, by providing solvency support to banks and SDIs impacted by the DDEP through the GFSF,” said Robert R. Taliercio, World Bank Country Director for Ghana, Liberia, and Sierra Leone.

    “Through direct support to banks and SDI, the project will benefit Ghana’s financial sector and the economy by supporting the access of depositors and other financial consumers to savings, payments, and other core financial services provided by adequately capitalized banks and SDIs.“

    The Ghana Financial Stability project is poised to offer immediate assistance to eligible undercapitalized but viable banks and SDIs, while also being available to other banks and SDIs in the future should they require support due to potential new losses. Additionally, it will serve as a safeguard against unforeseen losses.

    “The World Bank Group’s support aims to help address short-term shocks to improve prospects for long-term sustainable development and long-term resilience against future shocks. The project promotes financial stability, a key requirement to protect people and preserve jobs,” said Carlos Leonardo Vicente, Senior Financial Specialist and Team Lead.

    The project aligns with the World Bank’s broader efforts to support Ghana’s economic development and financial sector reform agenda. It complements existing initiatives such as the Development Programme Financing series and the IMF-Extended Credit Facility, which focus on enhancing the macroeconomic environment and promoting profitability and capital generation within financial institutions.

    Furthermore, it synergizes with other World Bank-funded projects aimed at fostering economic recovery and job creation in Ghana, including the Ghana Development Financing Project.

    This particular project facilitated the establishment of the Development Bank of Ghana and provides vital long-term financing to small and medium enterprises and small corporates.

    Established in 1960, the International Development Association (IDA) plays a crucial role in assisting the world’s poorest countries.

    Through grants and low to zero-interest credits, IDA funds projects and programs that stimulate economic growth, alleviate poverty, and enhance the well-being of vulnerable populations.

    With a focus on the 74 poorest countries globally, including 39 in Africa, IDA resources have positively impacted the lives of over 1.3 billion people.

    Since its inception, IDA has provided a total of $458 billion to 114 countries, with annual commitments averaging approximately $29 billion over the last three years (FY19-FY21), with a significant portion directed towards projects in Africa.

  • We will do everything to help you get out of this crisis – World Bank to Ghana

    We will do everything to help you get out of this crisis – World Bank to Ghana

    The World Bank has assured that the Bretton Woods institutions will continue to collaborate to assist developing countries like Ghana.

    A Senior Economist at the World Bank Group, David Elmaleh, projected an economic recovery for Ghana in the near future due to the support provided by the World Bank.

    “The reforms that we’ve supported will help to further advance the country and could attract the support of others. I think that the World Bank as an institution is aware that this crisis has been very difficult for Ghanaians. We are doing everything we can jointly with partners to help get out of this crisis,” he said.

    The World Bank is of the firm assertion that its recent disbursements to Ghana will catalyze additional donor funding and private capital investment for the country.

    Since January, the Bank has disbursed over $800 million to the Ghanaian government, with more expected before the end of the year.

    David Elmaleh is optimistic that the approval of these funds would encourage other donor partners to join in supporting Ghana’s economic recovery programme.

    “The fact that the World Bank approves this operation is in fact a recognition of the reform programmes enacted by the government and the fact that it’s starting to bear fruits”, he said.

    The World Bank in January this year approved a $300 million Development Policy Operation for Ghana.

    The First Resilient Recovery Development Policy Financing is a critical contribution by the Bank’s International Development Association (IDA) to help Ghana’s economic recovery and support the country’s resilient and inclusive growth.

    The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives.

    Economic crisis

    Ghana is in debt distress and public debt is unsustainable. In response, the government has embarked on a comprehensive debt restructuring, a significant fiscal consolidation program, and the implementation of reforms to foster economic stability and resilience.

    The authorities’ stabilization efforts are being supported by an Extended Credit Facility (ECF) program of the IMF for approximately $3 billion.

    The crisis has taken a toll on the pace of economic growth – which decelerated to an estimated 2.9% in 2023 and is projected to remain weak in 2024. 

    Over the first months of 2024, the deceleration of inflation has stalled due to pass-through of the depreciation on prices of imported goods, on non-food inflation while food inflation marginally fell.

  • World Bank expects more donor support for Ghana

    World Bank expects more donor support for Ghana

    The World Bank has announced that its recent disbursements to Ghana are expected to catalyze additional donor funding and private capital investment for the country.

    Since January, the World Bank has disbursed over $800 million, with more expected before the end of the year.

    David Elmaleh, a Senior Economist at the World Bank Group, expressed optimism that the approval of these funds would encourage other donor partners to join in supporting Ghana’s economic recovery programme.

    “The fact that the World Bank approves this operation is in fact a recognition of the reform programmes enacted by the government and the fact that it’s starting to bear fruits”, he said.

    Mr. Elmaleh also projected an economic recovery for Ghana in the near future due to the support provided by the World Bank.

    He assured that the Bretton Woods institutions would continue to collaborate to assist developing countries like Ghana.

    “The reforms that we’ve supported will help to further advance the country and could attract the support of others. I think that the World Bank as an institution is aware that this crisis has been very difficult for Ghanaians. We are doing everything we can jointly with partners to help get out of this crisis”.

    Mr. Elmaleh emphasized the World Bank’s expectation for the Ghanaian government to invest in areas that will reduce poverty and create jobs.

  • Control excessive spending to stabilize cedi – Minority to govt

    Control excessive spending to stabilize cedi – Minority to govt

    The Minority in Parliament has called on the government to stick to fiscal consolidation and rein in excessive spending to curb the depreciation of the cedi.

    Speaking to the press in Parliament, Minority Leader Dr. Cassiel Ato Forson accused the government of overspending and awarding contracts in billions of US dollars without proper budgetary and parliamentary approval, contributing to the weakening of the cedi.

    “Our cedi is depreciating because the government is on an expenditure spree, spending money as if there is no tomorrow,” he alleged. As we speak, we are aware that they are awarding contracts in billions of US dollars without budgetary and parliamentary approval,” he added.

    Dr. Forson, who also represents the National Democratic Congress (NDC) for Ajumako-Enyan-Esiam, outlined several factors contributing to the cedi’s decline, including the Bank of Ghana’s (BoG) policies, such as mixed cash reserve ratios and maintaining segmented foreign exchange markets.

    Despite significant foreign exchange inflows from international bodies like the IMF and World Bank, Dr. Forson criticized the government’s management of the cedi, attributing its continued depreciation to poor decision-making.

    He highlighted the adverse effects of the cedi’s depreciation on the prices of goods and services, leading to increased costs for consumers and worsening economic conditions for Ghanaians, especially importers facing higher expenses for the same quantity of goods.

  • Investments in data systems can bolster development ambitions – Mohammed Amin

    Investments in data systems can bolster development ambitions – Mohammed Amin

    Ghana’s Finance Minister, Dr. Mohammed Amin Adam, emphasized the pivotal role of quality and timely data in accelerating development for developing nations.

    At a World Bank Partnership Roundtable in Washington DC, he urged governments and development partners to prioritize investments in data systems.

    Highlighting the significance of robust data governance frameworks and open data policies, he stressed their role in addressing critical developmental challenges.

    “I will like to use this occasion to call on policy makers to prioritise investments in data systems as that is the way to go if we have to fast-track our development ambitions,” he said. 

    Dr. Adam called for increased collaboration and investment to narrow the global gap in high-quality data generation, crucial for supporting developmental efforts.

    “As we forge ahead, it is critical that we remain committed to leveraging the power of data to address pressing challenges, drive innovation, and create a better future for all. Together, with a clear vision and a strong commitment to data-driven policymaking, we can chart a path towards prosperity and resilience for generations to come.

    “The strides made by the Ghanaian government, in collaboration with development partners and international organizations, underscore a collective commitment to harnessing the power of data for the betterment of society,” he emphasized.

    Dr Amin Adam, therefore, called for more investment and collaboration to harness the power of data and to close the big gap both globally and at the country level in timely generation of high-quality data to support developmental efforts.

  • Inflation may remain high this year due to rise in commodities – World Bank warns

    Inflation may remain high this year due to rise in commodities – World Bank warns

    The World Bank projects energy and other commodity prices to become significant deflationary factors in the coming years, posing challenges for central banks aiming to implement interest rate reductions.

    In a recent report, the multilateral lender highlighted the stabilization of commodity prices after a substantial decline observed over the past two years.

    This stabilization is attributed to tightening supplies due to geopolitical tensions and increased demand for industrial metals and those utilized in the energy transition.

    According to Financial Times News, global commodity prices experienced a notable decrease of 40% between mid-2022 and mid-2023, impacting commodities such as oil, gas, and wheat.

    Consequently, global inflation saw a reduction of approximately 2 percentage points during this period. However, over the past year, prices have plateaued, putting an end to this deflationary pressure.

    Indermit Gill, Chief Economist and Senior Vice-President of the World Bank Group, noted, “Global inflation remains undefeated,” said Indermit Gill, World Bank Group’s Chief Economist and Senior Vice-President. “A key force for disinflation — falling commodity prices — has essentially hit a wall. That means interest rates could remain higher than currently expected this year and next.
    “The world is at a vulnerable moment: a major energy shock could undermine much of the progress in reducing inflation over the past two years”.

    The bank forecasts that commodity prices will fall by as little as 3% in 2024 and 4% in 2025.

    However, this slowdown in price falls will do little to quell above-target inflation and may pose challenges for central banks wanting to bring down interest rates.

    The World Bank Group’s deputy chief economist, Ayhan Kose, highlighted the significance of high commodity prices amid slowing global growth, marking the start of “a new era,” comparable to the aftermath of the 2008 global financial crisis.

    While most commodity prices are expected to decrease at a slower pace, the bank forecasts a rise in the copper rate due to the energy transition’s demand for the metal, essential for manufacturing electric cars and upgrading the electricity grid.

    Additionally, tensions in the Middle East are forecasted to push up the cost of gold and oil. The bank expects the price of Brent crude oil to average $84 a barrel this year and $79 in 2025.

    However, if the conflict in the Middle East escalates, oil prices could surpass $100 per barrel this year, leading to a significant global inflationary impact.

  • Global food prices to decrease significantly in 2025 – World Bank

    Global food prices to decrease significantly in 2025 – World Bank

    The World Bank has recently published its April 2024 Commodity Outlook Report, projecting a significant decrease in global food prices for 2024, with an estimated 6 per cent decline, followed by an additional 4 per cent drop in 2025.

    This reduction is primarily attributed to lower prices for grains, oils, and meals, while other food categories are anticipated to experience price increases in 2024.

    However, 2025 is anticipated to witness widespread decreases in food prices.

    The grains price index is expected to decrease by 11 per cent in 2024, fueled by increased global grain supplies. Wheat prices are predicted to fall by 15 per cent in 2024 due to heightened production, with an additional 2 per cent decline projected for 2025.

    These forecasts coincide with intense export competition and slightly higher production, counterbalanced by somewhat increased consumption and the lowest end-of-season stocks-to-use ratio in eight years.

    Global maize production is poised to reach a record high in the 2023–24 seasons, while global rice production in 2023-24 remains steady, accompanied by a decrease in the stock-to-use ratio to its lowest level in three years.

    Rice prices are expected to climb by 8 per cent (year-on-year) in 2024 due to tight global markets and export restrictions imposed by India.

    In the Ghanaian context, a reversal in food disinflation is evident as the food inflation rate surged from 27.0 per cent in February to 29.6 per cent in March 2024.

    This uptick in food inflation occurs amidst persistent concerns about food insecurity in the sub-Saharan region.

    As global food prices are projected to decline, it remains to be observed how these developments will impact Ghana’s food market and the overall food security situation in the country.

  • Global food prices to drop by 6% in 2024 – World Bank

    Global food prices to drop by 6% in 2024 – World Bank

    The World Bank‘s April 2024 Commodity Outlook Report predicts a significant decline in global food prices, with a projected 6 per cent decrease in 2024 and an additional 4 per cent decline in 2025.

    The drop is mainly attributed to lower prices for grains, oils, and meals, while other foods are expected to see price gains in 2024. However, 2025 is projected to bring broad-based declines in food prices.

    The report forecasts an 11 per cent decrease in the grains price index in 2024, driven by higher global grain supplies. Wheat prices are expected to decline by 15 per cent in 2024 due to elevated production, with a further 2 per cent decrease in 2025.

    These projections come amidst strong export competition and marginally higher production, countered by somewhat greater consumption and the lowest end-of-season stocks-to-use ratio in eight years.

    Global maize production is set to reach an all-time high in the 2023–24 seasons, while global rice production in 2023-24 remains flat, with the stock-to-use ratio falling to the lowest level in three years.

    Rice prices are forecast to rise by 8 per cent (year-on-year) in 2024 due to tight global markets and India’s export restrictions.

    In Ghana, however, the food inflation rate has increased, moving from 27.0 per cent in February to 29.6 per cent in March 2024.

    This rise in food inflation is concerning amidst ongoing concerns about food insecurity in the sub-Saharan region. The impact of these global food price changes on Ghana’s food market and overall food security situation remains to be seen.

  • We’ll continue providing financing to Ghana despite absence of agreement with Eurobond holders – IMF

    We’ll continue providing financing to Ghana despite absence of agreement with Eurobond holders – IMF

    During the ongoing International Monetary Fund (IMF) /World Bank Spring Meetings in Washington, DC, the African Director of the IMF, Abebe Selassie has reassured Ghana of continued financial support despite ongoing negotiations with its Eurobond holders.

    Selassie stated that while an agreement with Eurobond holders has not been reached, the IMF remains committed to providing additional financing to Ghana.

    He emphasized the IMF’s flexibility in tailoring policies to support countries efficiently.

    “With respect to Ghana, again, discussions are ongoing just a few months after official creditors provided financing assurances and, the government is in good faith discussions with their creditors, and we hope that there will be an outcome. I should add here that the fact that they have not reached agreement with their Eurobond holders will not prevent us from being able to provide more financing, although reaching that agreement is of course important”.

    “As of now there is no MOU [Memorandum of Understanding] with bilateral creditors, but we know that there have been intensive discussions in recent weeks and those are continuing, and we are very hopeful that there will be agreement with bilateral official creditors. To be clear, they have provided financing assurances though, and that remains in effect. And so, we are not envisaging that it will be an issue for our ability to conclude the next review and provide the disbursement that is pending. As we noted, we have reached staff-level agreement and that is by far the most important component for the review,” Abebe Selassie stated.

    Regarding Ghana’s discussions with creditors, Selassie expressed optimism about a positive outcome.

    “With respect to commercial creditors. I think we are grateful that the government shared with us some of the terms that are under consideration. Staff has provided an input on whether these terms were consistent with program parameters and the government has decided that they would not pursue this deal just yet. Again, I think we are very hopeful that there will be movement and that they can reach agreement consistent with the program parameters, helping lower Ghana’s debt burden at the right level and avoiding, of course, people of Ghana having to make too much sacrifice”, Mr. Selassie pointed out.

    He noted ongoing talks with both commercial and bilateral creditors, highlighting the importance of reaching agreements to alleviate Ghana’s debt burden.

    Despite the absence of a Memorandum of Understanding (MOU) with bilateral creditors, Selassie highlighted the progress in discussions and expressed confidence in a favourable resolution.

    He also mentioned the government’s decision not to pursue a deal with commercial creditors at present, pending agreement on terms aligned with program parameters.

    Selassie concluded by expressing hope for swift negotiations with private sector creditors while acknowledging that these processes take time and are primarily between Ghana and its creditors.

    “I am hopeful also that the private sector creditors are also approaching it with that view. But negotiations take time, and I am not sure I can give a timeline. This is something that is between Ghana and its creditors, so I will leave it at that”.

    Overall, the IMF remains supportive of Ghana’s efforts to manage its debt and achieve financial stability.