TIG Post

Tag: World Bank

  • Bright Simons highlights discrepancies in World Bank’s Ghana project reports, reveals ‘shocking’ findings

    Bright Simons highlights discrepancies in World Bank’s Ghana project reports, reveals ‘shocking’ findings

    Vice President at policy think tank IMANI Africa, Bright Simons has raised alarming concerns about the World Bank’s operations in Ghana.

    In a recent tweet, Mr Simons cast a spotlight on the alleged discrepancies between the World Bank’s portrayal of its projects in Ghana citing his policy paper for the Paris-based Finance for Development Lab (FDL) as a point of reference, revealing a gap between the World Bank’s reports and the lived experiences of Ghanaians.

    Simons’ investigation into the World Bank’s nearly $4 billion portfolio in Ghana shows that the reported outcomes are often at odds with reality, with a deviation occurring approximately 70% of the time. This alarming statistic raises questions about the effectiveness of the World Bank’s efforts in the country.

    The paper scrutinizes several projects, including the Ghana Energy Development & Access Program (GEDAP) and the e-Ghana/e-Transform initiatives.

    Despite high disbursement rates and positive ratings, these programs have not delivered the promised improvements. For example, the GEDAP aimed to reduce losses for the Electricity Company of Ghana (ECG) but instead saw an increase in losses and fines for non-compliance with regulatory directives.

    Similarly, the e-Ghana project, which sought to digitize various government services, has been plagued by inefficiencies and bypassing of systems.

    A screenshot of Bright Simons’ post on X

    The Government Integrated Financial Management Information System (GIFMIS), despite being praised as a major accomplishment, was largely ignored, with over 86% of government payments circumventing the system.

    The e-Procurement module, launched to cut government procurement costs, was found to be ineffective, with most tenders posted for negligible amounts and many lacking award amounts, undermining the goal of a transparent e-procurement platform.

    Simons’ findings suggest that the World Bank’s focus on disbursement rates does not necessarily lead to positive social outcomes.

    He points out that Ghana’s growth model has led to an increase in poverty and inequality, contrasting with countries like Kenya, which have seen improvements in these areas.

    The paper concludes with a call for greater involvement of domestic activists and the establishment of “community rating agencies” to ensure that development finance leads to real social impact.

    Such agencies could provide not just information but also political pressure to correct project execution issues proactively or preemptively, potentially avoiding the neocolonialist implications often associated with World Bank and IMF conditionality.

    Simons’ revelations suggest a need for a fundamental reevaluation of the World Bank’s approach to development finance, particularly in how it measures and reports on the success of its projects.

  • Is the World Bank saving or harming Ghana?

    As the Spring Meeting and its panoply of side events wind to a close, the recurring theme yet again is “more money” for the world’s poor. A point made with refreshing clarity by the World Bank’s President: “no amount of creative financial engineering will compensate for the fact that we just need more funding.”

    There is always much talk and jargon about “reform” of the “global development finance architecture” but it really all boils down to convincing richer folks in the “Global North” to release more cash to relatively poorer folks in the “Global South”.

    That convincing has had many ups and downs. Whilst the World Bank has celebrated the replenishment of its grants and soft loans pot, the IDA, in 2021 as the biggest ever in history, and is looking forward to an even bigger inflow for the next replenishment cycle (which will be known as IDA21), development activists at the global level point to the massive gap between the $5 billion more per year the Bank committed to spend recently and the trillions of dollars experts say are needed to align needs in the developing world with the climate and resilience agenda ($4 trillion, says the UN).

    For those of us whose activism mostly focuses on the country level, though, we sense a major gap in the global discourse: when the likes of the World Bank get more money, that doesn’t necessarily translate to bigger and better investments in developing countries. Various factors much closer to home than in Washington appear to conspire and create a “constriction” in the flow of allocated money. Attempts to clear up the pipe and speed up “disbursements” of the money, on the other hand, can lead to a deterioration in the quality of development projects and compromise the impact on people’s lives.

    To examine this idea carefully in Ghana, the prime focus of my own policy activism, I have been painstakingly probing the outcomes of the World Bank’s investments there over the last two decades for a paper that has just been published by Paris-based Finance for Development Lab (FDL).

    I conclude that the results presented by the World Bank’s reports on these investments substantially deviate from the reality on the ground about 70% of the time.

    This analysis excludes certain investments made through the IFC, the World Bank’s private sector arm, or the guarantees issued by the World Bank’s MIGA, even though there are other reasons to be concerned about the IFC’s growing penchant for prioritizing malls and luxurious apartment complexes over social enterprises.

    The “Disbursement” Bogey

    In the early 2010s, the World Bank was struggling to disburse the funds it had allocated/committed to Ghana. The disbursement rate was languishing around 10%. In the ensuing years, efforts were made to considerably boost disbursements. Today, the global Bank’s ~$4 billion Ghana portfolio has an average disbursement rate higher than 48%.

    I have selected a few case studies discussed in the FDL paper mentioned above based on their stellar ratings by World Bank staff. The idea being that if these are among the best projects from a disbursement and outcomes perspective, then there is even greater concern about the rest of the portfolio.

    Ghana Energy Development & Access Program/Energy Sector Reform Program

    In 2007, the World Bank launched a $220 million project called GEDAP. One of its major aims was to transform the Electricity Company of Ghana (ECG). From 2010 onwards, the World Bank has expanded the scope and ticket of GEDAP to double down on the intervention. Having started with a $70 million investment, an extra $60 million soon followed. In GEDAP assessments, the World Bank touts progress in lowering ECG’s commercial losses and assures evaluators that progress on improving bill collections, especially for power consumed by government entities, is imminent.

    An enhanced effort, the Energy Sector Recovery Program, launched in 2019, with even higher focus on persistent ECG arrears accumulation and value chain debt. Boasting 88% disbursement rates and a “moderately satisfactory” rating, one might easily assume that these interventions have made a significant difference to ECG’s operational situation.

    According to the World Bank’s official assessment of the results of these investments, a $55 million injection to upgrade billing and revenue protection, a “Commercial Management System”, and “Advanced Metering Infrastructure”, have been critical to salvaging ECG’s finances. For example, a provision was made in the program for 156,000 smart retail-level meters and 25,000 bulk meters to support revenue management. A timeline of January 2020 for all these powerful measures to bear fruit was indicated in the official project update.

    Unfortunately, the facts on the ground, amply attested to by Ghana’s Auditor General and the ongoing rolling blackouts in Ghana today, do not bear out these assessments. Official audit data shows that ECG procured smart meters costing more than $145 million without competitive tender, contrary to its own procurement policies. Consequently, Ghana’s Auditor General failed the entire exercise on Value for Money grounds. Some contractors failed to perform on contracts, and the frustratingly long waiting times for securing a meter have not improved. ECG’s losses have actually increased since GEDAP commenced, to an average of about 30% over the project horizon. Taking full account of collection failures, the loss ratio actually exceeds 50% in some quarters. Very recently, ECG’s regulators fined the company’s board members millions of Ghana Cedis out of frustration with the company’s persistent flouting of regulatory directives.

    e-Ghana/e-Transform

    The e-Ghana project began in 2006, was reviewed when the new government assumed office in 2010, and wrapped up in 2014, whereupon a follow-up digitalisation program, e-Transform, was put together to carry forward the broad vision of ICT-driven development in Ghana.  Besides the World Bank, the EU chipped in, as also did the British and Danish governments (about 40% of the ~$60 million ticket).

    When the government changed again in 2017, the usual review occurred. The digital ID component was dropped because a politically favoured vendor was not keen to play to World Bank dictates. Newer focuses like cybersecurity, digitalisation of the postal system, and the digital transformation of the national hydromet infrastructure were introduced to complement the core e-government initiatives. By 2020, disbursements had jacked up to 74%. There are projections of the disbursement rate hitting 96% in 2024. Here is how a few of the key modules are doing.

    • GIFMIS

    One of the most important reforms carried over from e-Ghana to e-Transform was the automation of the payments and payments-monitoring aspects of public financial management, through a platform called GIFMIS. 

    The World Bank’s assessment documents describe GIFMIS as “one of the major accomplishments of the project”. GIFMIS was said to have “added several major functions: treasury, budget formulation and execution, financial reporting and more transparent use of funds”.

    GIFMIS was also hailed as having connected all key government Ministries and regional treasuries and spending units, and thus for having “improved the efficiency of government functions, in this case planning the national budget.”

    The EU and the European bilateral donors disputed the World Bank’s findings. They insisted that their reading of the joint audits showed that at best GIFMIS was at 60% readiness. They pointed to persistent public financial management (PFM) challenges – like arrears, overspending, extra-budget allocations, and slippages – that a well-functioning automated payments platform should be able to address but GIFMIS seemingly couldn’t. Unable to make progress with the World Bank, the EU and the bilateral donors withdrew from the joint effort and transitioned to observers.

    Recent reports by Ghana’s Auditor General also paint a very different picture of GIFMIS. It turns out that more than 86% of government payments meant to be covered by the system have been bypassing it, defeating its very rationale for existence.

    • e-Procurement

    The e-Procurement module of e-Transform was launched on 30th April 2019 with a unique selling point of cutting procurement costs for the government by $10 million a year over the ensuing decade. Analysts in Ghana estimate losses to the state due to poor procurement of $3 billion per year, the same as the country’s IMF bailout package. Over 600 public and state-controlled institutions were expected to make use of the new platform.

    We examined 4000 of the 4875 tender results posted on the GHANEP e-procurement website. Based on our sample, we estimate that 95% of all tenders posted on the site are for amounts less than $100,000. We found hundreds of entries of less than a $100, and some below a dollar. Many records do not even feature award amounts, rendering them useless for analysis and defeating the very purpose of a transparent e-procurement platform.

    For example, virtually every entry related to Bekwai Municipal Hospital and Nsawam Government Hospital was for a token amount of the cedi equivalent of a few dollars or even less than a dollar. Virtually all entries related to Asamankese Government Hospital, Oda Government Hospital, Sefwi Asafo College of Health, Asankragwa Nursing & Midwifery College, and Kade Government Hospital have no dollar amount mentioned at all. Public health institutions are overrepresented most probably because the reimbursement procedures of the national health insurance mechanism have made use of similar systems familiar to personnel. More than 60% of all entries relate to about 5 government owned health facilities.

    Unsurprisingly, procurement activity related to the vast majority of World Bank funded projects do not feature on the GHANEP site. In fact, our extensive search in March 2024 revealed only one World Bank funded procurement activity featured, a Ghana Health Service office equipment purchase in December 2023, with reference number GHSHQ/2023/ODG/20. It goes without saying that all the multimillion-dollar government projects that have given Ghanaian activists serious grief over the last half a decade such as SML, the National Cathedral, and the Bank of Ghana motels do not feature.

    • e-Health

    The Integrated e-Health system promised in the e-Transform initiative was to deliver on telemedicine, mHealth, and training at multiple levels of the health ecosystem to enable service interoperability. Instead, the strategy never really took off in any concrete form. The clear calls for interoperability among digital solutions has been totally abandoned for a monopoly system owned by a US-based Ghanaian entrepreneur and developed in closed-source fashion by a contractor in India.

    The platform, known as Lightwave, was declared by ministerial fiat as the only acceptable electronic health solution across the entire health network, even though many of the modules needed for fully-fledged health management operations were still under development. Even more perplexing, existing ehealth solutions provided by other companies were forced out, again by Ministerial fiat. The result has been extreme vendor lock-in and a decimation of the e-health innovation marketplace in Ghana. 

    • e-Justice

    The e-Justice module went live in March 2019. In their assessments justifying the need to extend and expand e-Transform, World Bank staff hailed tremendous early successes: 43000 legal cases had been filed electronically within 2 years of launch.  Our survey of legal practitioners however indicate that the vast majority of processes related to court functions are still operated manually.

    An evaluation by independent analysts show that the website has fallen into functional disrepair, the “effective launch” date has been pushed back to 2026, and the court authorities are now looking to engage consultants to implement a change management system.

    • e-Immigration

    Of the different e-Transform modules, the e-Immigration system presents the most bewildering account. It was envisaged to deliver automated immigration clearance at the airport (using biometrically-enabled e-gates), digital visa processing, and the phasing out of paper-based procedures across all borders (including land and sea). In short, a big deal. The e-gates submodule alone was budgeted at nearly $20 million. Central to all this was a Secure Border Management System (SBMS) meant to replace a US-donated platform on the grounds of enhanced data security.

    6 years after SBMS was expected to launch, the web version of the US-donated system continues to be the primary immigration clearance solution in use at Ghana’s sole international airport. Despite claims to the contrary in the official World Bank records about the project, the fact on the ground is that no SBMS was rolled out. The $16.3 million e-gates that the official records claim were already functional and just needed to be transferred from terminal 2 to terminal 3 of the international airport, at the cost of an extra $2.9 million, have not been deployed to automate immigration clearance five years on. The multi-million-dollar electronic visa management system launched, according to World Bank records, in February 2019, failed to deploy to most of Ghana’s diplomatic missions abroad. The individual missions have had to engage service providers to build and manage separate systems at their own cost.

    Despite good intentions, reality has not been too kind

    It should now be apparent to the reader that official World Bank reports diverge substantially from the lived reality of domestic activists. Even though it was already apparent in 2020 that most of the touted deliverables on e-Transform were mostly on paper, the World Bank, in 2020, agreed to extend it for a further 4 years and even doubled the commitment from $97 million to $115 million.

    It is also evident that World Bank staff operate based on assumptions of the intent of political actors that are not grounded in reality. For example, in one of their assessments of the status of the institutional reforms considered necessary for the success of e-Transform, the World Bank team gave the impression that the “broadcasting law” deliverable in the program would be passed by Parliament sometime in 2014. Ten years on, lacking any serious domestic political constituency, the law has still not been passed.

    Clearly, World Bank staff regularly misdiagnose the political economy of the country when designing and monitoring projects.

    For example, software platforms (called “TRIPS” and “e-Register”) developed under e-Ghana/e-Transform for the tax authorities and the Ghanaian companies’ registry by a company called GCNet and launched with great fanfare in 2013 and 2015 respectively. They quickly fell into disuse and never went mainstream because GCNet progressively lost political capital. Eventually, GCNet lost its legacy port automation business to a new politically favoured contractor, and was forced to concentrate on the Company Registry automation effort only to be hobbled by employee strikes, leading to a shutdown of the e-Register system. TRIPS, on the other hand, was eventually scrapped altogether and a new system built by a new vendor, called ITAS, was introduced in 2023. The tender leading to the selection of the successful vendor, a consortium constituted by TATA and local ICT firm, IPMC, was impugned by Ghana’s Central Tender Review Committee, an advisory body, leading to protracted contracting delays.

    Sometimes, projects do get off the ground nicely but fail the sustainability test. One of the main hopes in rolling out e-Transform was to turn Ghana into a Business Process Outsourcing (BPO) hub and innovation powerhouse through effective incubation of startups. “Regional Innovation Centers” were to be set up in the capital of each of the ten administrative provinces in Ghana at that time. In e-Transform project assessment documents, the evaluators highlighted considerable progress by listing startups that have benefited from the initiative and are poised to make major contributions to the ecosystem. No resilience metrics were provided. Yet, 90%+ of the 25 startups listed as evidence of the success of the innovation program had ceased to operate within 3 years.

    The same World Bank assessments used the growing presence of companies like QAI, Teletech, Comviva, Tech Mahindra, and ACS, to back claims that the BPO strategy had been wildly successful.

    A few years later, the idea of decentralising the program to all provincial capitals was shelved and with that the concept of using them as e-government enablement platforms. The effort was consolidated into two facilities in Ghana’s two largest cities, which today mainly function as office space for well-connected startups looking for subsidised rent. The BPO momentum has almost fizzled out.

    The lesson here is that disbursement rates for World Bank and other global development finance flows cannot be improved without fundamental improvements to the quality of governance. Trying to do otherwise is not merely wasteful, it can even be counterproductive.

    By contributing to Ghana’s high input but low outcome resource use strategy, the World Bank may well be weakening social solidarity. Ghana’s current growth model is one that has seen the growth elasticity of poverty (the corresponding decline in poverty as a result of economic growth) decline by a staggering 25 times from -1.18 to -0.07. Consequently, both Ghana’s poverty gap and inequality measure (GINI coefficient) have worsened considerably.

    Hence, whilst Ghana’s current World Bank average disbursement ratio of 48.6% (having accelerated from 16.6% in 2018) is markedly higher than Kenya’s 17.7%, the latest available measure of the share of “problem projects” in Ghana, at a five-year average of 30%, is significantly higher than the comparable Africa-wide average of 26%. Comparatively, Kenya has seen its GINI coefficient fall from 45 in 2005 to roughly 35 today. The latest measure of Ghana’s World Bank portfolio commitments at risk at 38% is likewise considerably higher than Kenya’s 22.2%, or even the Africa-wide average of 26%. To repeat: improving disbursement of development finance at all cost does not always generate positive social outcomes.

    One could make the argument that waste and inefficiency are inherent in the nature of all government bureaucracy, included that of the so-called Global North. The difference is that Global North governments account primarily to domestic stakeholders for their development finance decisions. In the Global South, certainly in Ghana and most African countries, the likes of the World Bank and the IMF are critical stakeholders that are nonetheless fully captured in domestic accountability regimes. To the extent that countries like Ghana depend heavily on external public finance actors, waste and inefficiency are compounded by the gaps in domestic oversight.

    Thus, alongside the push for more money to be pumped through global development finance channels, like the World Bank, we all ought to pay equal attention to the role of domestic activists in ensuring that the money will actually go towards real social impact. Such a move would require intentional resourcing of such “citizen and community verification and rating service providers”.

    It is common in the commercial world for investors to pay ratings agencies to produce rigorous information on the jurisdictions they want to invest in and the governments they want to lend to. The World Bank and other development agencies ought to take a leaf from this playbook and invest in grassroots “community rating agencies” that can provide not just information, as classical ratings agencies do, but also the necessary political pressure to right wrongs in project execution proactively, or even preemptively.

    And for added bonus, such a model may even escape the neocolonialist baggage often associated with World Bank – IMF “conditionality”.

  • World Bank attributes Africa’s slow growth to structural inequalities

    World Bank attributes Africa’s slow growth to structural inequalities


    The World Bank’s chief economist for the region, Andrew Dabalen, emphasized deep-rooted inequalities as a major obstacle to Africa’s economic progress.

    In an interview on Citi TV’s The Point of View, he highlighted the absence of critical infrastructure and limited intra-African trade as primary factors impeding growth.

    “The speed at which Africa’s growth reduces poverty is only half than what we see in the rest of the world. East Asia is much higher.

    One of the major reasons for that is what we call structural inequalities in this report.

    “There are many reasons why Africa’s growth is low, part of it is that we don’t have infrastructure in terms of energy, water and sanitation, and we don’t really trade a lot with each other.

    “We have lots of shocks from either commodity prices, conflict or climate disasters. One of the important determinants of this low growth and this ability of low growth to convert to poverty reduction is inequality and structural inequality.

    Andrew Dabalen, further explained that inequalities are often caused by circumstances beyond an individual’s control.

    And things like where you were born, your skin color, or whether you’re a man or a woman can greatly affect your access to education, healthcare, and food.

    “They are inequalities because of circumstances an individual cannot control. You don’t have control over where you were born and who you were born to, your skin colour, or the fact that you are a man or a woman. These circumstances that you are born into account for almost 70% of all the differences you see between children’s access to education, health or nutrition.

    “That is what we call structural, it’s not something you can change with your ability or something that the market can correct, it requires social policy action,” he told host Bernard Avle.

    In the April 2024 Africa Pulse Report by the World Bank, there were forecasts for Africa. It predicted that Ghana’s economic growth would slow down in 2024, even though there were expectations of more economic activity.

  • Sustained growth could have made African families 35% more wealthier – World Bank

    Sustained growth could have made African families 35% more wealthier – World Bank

    The Chief Economist for the Africa Region at the World Bank, Andrew Dabalen, has emphasized the potential wealth increase of African families by 35% if growth had been sustained over the past 14 years.

    These insights were shared during discussions on the World Bank’s Africa Pulse Report for April 2024.

    In an interview with Bernard Avle on Citi TV’s Point of View program, Mr Dabalen noted the challenges of maintaining growth rates in Africa over an extended period, despite lower growth rates compared to other regions.

    He highlighted that Africa’s ability to reduce poverty through growth is only half of the global average and pointed out differences in economic recovery durations between Africa and East Asia.

    Mr Dabalen drew comparisons with East Asia, noting that economic recovery in Africa tends to be short-lived, whereas in East Asia, it persists for a longer duration before faltering.

    This observation underscores the economic resilience and sustainability disparities between the two regions.

    He concluded by noting that Africa’s growth rate reduces poverty at a slower pace compared to other regions, particularly East Asia, which experiences much higher poverty reduction rates.

    “Africa’s growth has been traditionally low compared to other regions being in the same situation as Africa, such as East Asia for instance. And it has been very difficult to sustain over a long period of time. Countries in Asia and Africa went through a recession, there’s an economic downturn we have had the experience.

    “Let’s say there’s a recovery, the recovery in Africa lasts maybe three years and then a shock comes, and it falters. It doesn’t sustain. Recovery in East Asia takes about eight years before it falters, that is a huge difference.

    He added, “Not only do you find Africa’s growth is lower, but you also find it is not sustained over a long period. And because of that, it’s extremely costly. If Africa’s growth was sustained at the rate at which it grew, it’s not high, but even if it was sustained between 2002 and 2014, that window of 14 years, African families would be 35% richer than they are now. That is the kind of things that give you a sense of how completely costly this low growth has been.

    “The speed at which Africa’s growth reduces poverty is only half of what we see in the rest of the world. East Asia is much higher.”

  • Africa’s growth rebounds to 3.4% in 2024 – World Bank

    Africa’s growth rebounds to 3.4% in 2024 – World Bank

    Chief Economist for the Africa Region at the World Bank, Andrew Dabalen, has expressed optimism regarding the projected 3.8% growth in Sub-Saharan African countries by 2025.

    The World Bank’s Africa Pulse Report for April 2024 forecasts growth in Africa in the forthcoming years. It suggests that domestic resource mobilization and international support can alleviate funding constraints in the region, while investments in human capital and local service delivery capacity can empower individuals to capitalize on market opportunities.

    During an interview on Citi TV’s The Point of View, Dabalen acknowledges Africa’s lower per capita growth over the past decade but views the 2024 rebound of 3.4% as a positive development compared to the previous three to four years.

    Mr Dabalen emphasized that this rebound is positive news, especially considering Africa’s growth being less than or around 1% in per capita terms over the last decade.

    He attributes the growth recovery in parts of Africa to various reforms implemented by governments to reduce inflation and interest rates, primarily driving the recovery in private consumption.

    “All those years what we have seen is a lot of hardships, for the first time in four years, we’re beginning to see a rebound of the economic activity. Last year [2023] we estimated growth to be 2.6% in Africa. On average, we can talk about specific regions that have outperformed and others that have not. This year rebounded to 3.4% and we have forecasted that in 2025, it will be about 3.8%.

    “What we’re saying is that this is a good development, it’s positive. We can talk about the link between inequality, in general view this accounts for population which is not completely unusual. In the last decade, Africa’s growth has been less than or around 1% in per capita terms. This will be a ball in the park. It’s positive news compared to the last three, or four years. That is important to acknowledge.”

    “It’s primarily driven by a recovery in private consumptions because inflation has come down substantially in a lot of these countries. Because of normalization of the global supply chain, steady decline commodity prices, the impact of reforms that these countries have done in order to bring inflation, interest rates down, so those are the drivers,” he said.

  • Lack of water, energy; conflict and inequality to blame for Africa’s slow economic growth – World Bank

    Lack of water, energy; conflict and inequality to blame for Africa’s slow economic growth – World Bank

    The World Bank‘s chief economist for the region, Andrew Dabalen, has identified deep-rooted inequalities as a significant obstacle to Africa’s economic progress.

    In an interview on Citi TV’s The Point of View, he highlighted a lack of essential infrastructure and limited intra-African trade as key factors limiting growth.

    Mr Dabalen noted that Africa’s growth rate in reducing poverty is only half as fast as the global average, with East Asia showing much higher rates. He attributed this disparity to what the report refers to as “structural inequalities.”

    “There are many reasons why Africa’s growth is low, part of it is that we don’t have infrastructure in terms of energy, water and sanitation, and we don’t really trade a lot with each other.

    “We have lots of shocks from either commodity prices, conflict or climate disasters. One of the important determinants of this low growth and this ability of low growth to convert to poverty reduction is inequality and structural inequality.

    “They are inequalities because of circumstances an individual cannot control. You don’t have control over where you were born and who you were born to, your skin colour, or the fact that you are a man or a woman. These circumstances that you are born into account for almost 70% of all the differences you see between children’s access to education, health or nutrition.

    “That is what we call structural, it’s not something you can change with your ability or something that the market can correct, it requires social policy action,” he told host Bernard Avle.

    According to the World Bank’s Africa Pulse Report for April 2024, there are forecasts for Africa, including a projected slowdown in Ghana’s economic growth for the same year. This is despite expectations of increased economic activity.

    Several African countries such as Cape Verde, Kenya, Chad, Sudan among others face water crisis due to various factors such as climate change, population growth, poor water management, and inadequate infrastructure.

    Since gaining independence in 2011, South Sudan has been plagued by civil war, leading to widespread displacement, food insecurity, and humanitarian crises.

    Nigeria has faced conflict, particularly in the northeast, where the Boko Haram insurgency has led to widespread displacement and humanitarian crises. Additionally, inter-communal violence and conflict in the Niger Delta region have also been significant challenges.

  • 3% GDP growth rate for Ghana in 2024 – World Bank predicts

    3% GDP growth rate for Ghana in 2024 – World Bank predicts


    The World Bank anticipates Ghana’s Gross Domestic Product (GDP) to grow by approximately 3% by the end of 2024, as outlined in the April 2024 edition of the World Bank Africa Pulse report.

    This growth rate signifies a deceleration compared to previous years, despite indications of economic activity and stability following challenges experienced in 2022 and 2023.

    The World Bank also predicts a slowdown in Ghana’s growth trajectory for 2024, aligning with the government’s announced target of 2.8% GDP growth rate.

    However, there is optimism for the future, with the report forecasting a significant rise in Ghana’s GDP to around 5% in 2025.

    In terms of regional contribution to economic growth among the largest economies, Ghana’s GDP growth is expected to be approximately 0.10%, indicating a relatively modest impact on the overall regional economic landscape.

    Nevertheless, the Africa Pulse report presents a positive outlook for Sub-Saharan Africa, with economic growth projected to accelerate to 3.4% in 2024 and further improve to an average rate of 3.9% in 2025 and 2026.

    The report also offers recommendations for policy measures aimed at fostering equitable economic growth.

    These include restoring macroeconomic stability, promoting intergenerational mobility, facilitating market access, and ensuring that fiscal policies do not disproportionately burden the poor and vulnerable segments of society.

  • Ghana’s economy to grow by 2.9% in 2024 – World Bank

    Ghana’s economy to grow by 2.9% in 2024 – World Bank

    The April 2024 World Bank Africa Pulse Report indicates that Ghana’s economy is expected to experience a slowdown in growth in 2024, despite anticipated improved economic activity.

    The report forecasts a Gross Domestic Product (GDP) growth of about 2.9% for Ghana in 2024, a decrease from nearly 5.0% in 2023 and an expected increase to 5.0% in 2025.

    Ghana, along with 14 other African countries, is projected to record a deceleration in growth in 2024. The country is also expected to contribute 0.10% to the regional GDP growth by the largest economies in the region.

    In contrast, growth in Sub-Saharan Africa is expected to accelerate to 3.4% in 2024 and further to an average rate of 3.9% in 2025–26.

    This rebound in growth is attributed to large countries in the region recording growth rates lower than their performance in the first two decades of the century.

    The report highlights that in 2024, growth is anticipated to accelerate in nearly 70% of Sub-Saharan African countries (32 countries). However, growth rates in about half of these countries (17 countries) are projected to be below their average growth in 2000–19.

    Ghana’s economy recorded a 2.9% GDP growth in 2023, surpassing the revised 1.5% forecast by the Finance Ministry but slower than the 3.1% growth recorded in 2022. The Industry sector contracted by 1.2% in 2023, compared to 0.6% GDP growth in 2022, though it remains the largest sector of the economy. The decline in the Industry sector’s GDP was primarily due to the 10.9% and 9.9% contractions in the Electricity and Construction subsectors, respectively, in 2023, with Mining and Quarrying being the only subsector that experienced growth (2.5%).

  • It’s a lazy man’s approach to rely on IMF, World Bank in boosting the cedi – IEA Director

    It’s a lazy man’s approach to rely on IMF, World Bank in boosting the cedi – IEA Director

    Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye, has criticized the government’s heavy reliance on foreign aid to support the local currency.

    Speaking at a press briefing held at the IEA headquarters on Wednesday, April 3, Dr. Kwakye raised concerns about the sustainability of Ghana’s economic strategy, particularly its dependence on funds from institutions such as the International Monetary Fund (IMF) and the World Bank.

    Describing this approach as a “lazy man’s approach,” he emphasized the risks associated with such borrowing, including Eurobonds and cocoa syndicated loans.

    Dr. Kwakye cautioned that the pressure on the Ghanaian cedi could escalate when these loans come due for repayment.

    Quoting statistics from the recent Monetary Policy Committee meeting of the Bank of Ghana (BoG), Dr. Kwakye highlighted that the Cedi had depreciated by 6.8 percent against the US dollar in the year leading up to March 20, 2024.

    “The Governor admitted that the foreign exchange market came under some pressure, both seasonal and non-seasonal-in February and early March. He reported that in the year to 20th March 2024, the Ghana cedi recorded a depreciation of 6.8 percent against the US dollar. He, however, stated that the cedi “continues to recover its value.” But the question is by what measure?

    “Certainly, not in nominal terms because since he spoke on 25th March, the cedi has continued to depreciate, reaching nearly GH¢13 to the dollar. Let us repeat right here that relying on funds from the IMF, World Bank, Eurobonds, cocoa syndicated loan, etc. to bolster the cedi, as we have been doing, is not only a lazy man’s approach. To say the least but also clearly unsustainable as the pressure would be back on when the loans fall due for repayment.”

    “The way to stabilize the cedi on a durable basis is to increase our FX earnings through greater ownership of, and value addition to, our natural resources, to reduce our import demand through domestic industrialization and to entrench fiscal and monetary discipline,” citinewsroom.com quoted him to have said during the press briefing.

  • World Bank’s $300m financial support hits BoG’s account

    World Bank’s $300m financial support hits BoG’s account

    The $300 million World Bank facility earmarked for various projects in 2024 has finally been transferred to the Bank of Ghana’s (BoG) account.

    Ghana fulfilled all necessary conditions, including securing approvals from Cabinet and Parliament, to facilitate this transfer. According to Joy Business, the funds were transferred on the morning of March 27, 2024.

    The BoG is now expected to convert the dollars into cedis and distribute the equivalent amount to government agencies and ministries.

    The foreign exchange component of this facility is expected to bolster the international reserves of the Bank of Ghana. Data from the BoG indicates that its Gross International Reserves exceeded $6 billion by the end of February 2024.

    Finance Minister Dr. Mohammed Amin Adam recently stated during a media engagement that the government anticipates receiving around $1.2 billion from development partners before the year ends. This disbursement is crucial for expediting infrastructure projects outlined in the 2023 Budget that were delayed due to the late arrival of donor support.

    Originally scheduled for disbursement late last year, the World Bank’s release of this facility was delayed as Ghana struggled to reach an agreement with its bilateral creditors, hampering the approval process for the $300 million loan.

    This inflow is expected to curb the depreciation of the cedi by signaling to the international market that the Central Bank is better equipped to stabilize the local currency.

    The $300 million Development Policy Financing, the initial tranche of a three-part series, is aimed at crisis response and resilience-building in Ghana. Its primary objectives include restoring fiscal sustainability, enhancing financial sector stability and private sector development, improving energy sector financial management, and bolstering social and climate resilience.

    This disbursement is expected to enhance domestic revenue mobilization, control expenditures, ensure financial sector stability, facilitate private investment, stabilize the energy sector financially and operationally, fortify the country’s social protection system, and integrate climate adaptation and mitigation into policies.

    Background:
    This disbursement is part of the overall financial support from Ghana’s donors as part of the IMF program secured by the country in May 2023. The IMF has already provided approximately $1.2 billion to Ghana under the FUND program.

    According to the World Bank, this initial tranche of the Resilient Recovery Development Policy Financing is a crucial contribution from the Bank’s International Development Association. It is designed to assist Ghana in its economic recovery and promote resilient and inclusive growth.

    The World Bank approved this facility in January 2024 following an agreement in principle by the Official Creditors’ Committee under the G20 Common Framework on the key parameters of Ghana’s proposed debt restructuring. This agreement aligns with the Joint World Bank-International Monetary Fund Debt Sustainability Framework, marking a significant step toward restoring debt sustainability.

  • 300 million dollars World Bank loan gets parliament’s nod despite minority’s concerns about borrowing levels

    300 million dollars World Bank loan gets parliament’s nod despite minority’s concerns about borrowing levels

    Parliament has voted by majority to approve a $300 million loan agreement between the government of Ghana and the International Development Association (IDA).

    The purpose of this facility, as stated by the government, is to support the financing of the 2024 budget.

    However, the minority, led by Dr. Cassiel Ato Forson, opposed the loan, expressing concerns that it would further strain the country’s already delicate debt situation.

    Instead of supporting the loan, the former Deputy Finance Minister urged the government to retract the over 7 billion cedis in tax exemptions granted to companies under the 1D1F program.

    Deputy Finance Minister Mrs. Abena Osei-Asare countered the minority’s claims, arguing that the tax exemptions are essential for stimulating industrial growth.

    Eric Opoku, the ranking member for the Food and Agriculture Committee, questioned the efficacy of the loan given the significant borrowing by the Nana Addo administration in the past, with little tangible results.

    Minister for Trade and Industry K. T. Hammond questioned why the minority was attempting to link the loan facility with tax exemptions.

    In a surprising turn of events, Ranking Member for the Finance Committee Isaac Adongo refuted his colleagues’ claims about tax exemptions, suggesting that the rejection of the $300 million facility from the World Bank was due to the government’s failure to present a $3 billion IMF bailout agreement to parliament for ratification.

    Despite the debates, Finance Minister Dr. Mohammed Amin Adams assured the minority that their concerns would be addressed. Ultimately, the loan was approved through a voice vote, with the majority prevailing.

  • Our relationship with Ghana hasn’t changed despite passage of anti-LGBTQ+ bill – IMF

    Our relationship with Ghana hasn’t changed despite passage of anti-LGBTQ+ bill – IMF

    In light of the recent approval of the Human Sexual Rights and Ghanaian Family Values Bill by Parliament, the World Bank Group has asserted its enduring commitment to its longstanding partnership with Ghana.

    This statement is intended to address and dispel any speculations that the World Bank Group might reduce its support in terms of aid and development assistance to Ghana.

    There have been growing concerns about potential financial challenges for Ghana, especially with warnings from the Finance Ministry indicating a potential loss of over $3 billion in World Bank funding for various programs and projects if the bill becomes law.

    However, a spokesperson from the World Bank has clarified that the institution does not view the recently passed bill as a reason to alter its collaboration with Ghana on development programs.

    The spokesperson underscored the ongoing productivity of the partnership between the World Bank and the Republic of Ghana.

    “The World Bank Group has a longstanding and productive relationship with Ghana,” the spokesman said.

    Addressing inquiries regarding the Human Sexual Rights and Ghanaian Family Values Bill, the World Bank stated its policy of refraining from commenting on specific legislation, especially one that has not been signed into law.

    “The Bill has not yet been signed into Law. We generally do not comment on Bills”.

    At present, it remains uncertain whether the World Bank will take any punitive measures if the bill is fully enacted.

  • List of World Bank funding projects Ghana risks losing over anti-LGBTQ bill

    List of World Bank funding projects Ghana risks losing over anti-LGBTQ bill

    The Ministry of Finance has noted that Ghana risks losing US$3.8 billion in World Bank financing over the next five to six years should President Akufo-Addo assent to the recently passed Promotion of Proper Human Sexual Rights and Ghanaian Family Values Bill also known as the anti-LGBTQ bill.

    Here is a breakdown of projects that amount to US$3.8 billion, as indicated by the Ministry.

    • US$300 million financing from the First Ghana Resilient Recovery Development Policy Operation (Budget Support) which is currently pending Parliamentary approval
    • On-going negotiations on the Second Ghana Resilient Recovery Development Policy Operation (Budget Support) amounting to US$300 million;
    • On-going negotiations for US$250 million to support the Ghana Financial Stability Fund;
    • Disbursement of undisbursed amounts totaling US$2.1 billion for on-going projects
    • Preparation of pipeline projects and declaration of effectiveness for two projects totaling US$900 million may be suspended.

    This will negatively impact Ghana’s foreign exchange reserves and exchange rate stability, as these inflows are expected to shore up the country’s reserve position, according to the Finance Ministry.

    With regards to the International Monetary Fund External Credit Facility worth $3 billion, the Ministry noted that there is no direct conditionality over its passage, however, the non-disbursement of the budget support from the World Bank will derail the IMF programme.

    The Ministry also warned that a derailed IMF programme will have dire consequences on the debt restructuring exercise with the Official Creditor Committee (OCC) and Eurobond holders, as well as Ghana’s long term debt sustainability.

    Background

    Parliament on February 28 passed the Promotion of Proper Human Sexual Rights and Ghanaian Family Values Bill also known as the anti-LGBTQ bill after three years following its introduction.

    During Wednesday’s Parliamentary session Majority Leader Alexander Afenyo-Markin sought to make amendments to the bill during the second consideration stage citing human right infringement.

    However, the Minority rejected his request, prompting the Speaker to push for the third consideration stage,.

    Speaker Alban Bagbin put the bill to a voice vote and the ayes had it.

    As it stands now, Parliament has tabled the bill at the President’s desk for President Akufo-Addo to assent to the bill to become law.

    The Anti-LGBTQ+ bill aims to criminalize LGBTQ+ activities in Ghana. It proposes strict penalties, including imprisonment, for individuals engaged in activities related to homosexuality and LGBTQ+ advocacy.

    Additionally, the bill seeks to prohibit the promotion of LGBTQ+ rights, organizations, and events in Ghana.

    Prior to its passage, there had been several amendments to the bill. After deliberation, Parliament decided that the minimum custodial sentence has been set at three years, with a maximum of five years for promoters and sympathisers.

    Additionally, individuals caught directly engaging in these activities will face a minimum sentence of six months, extendable to a maximum of three years.

    Ghana is among many African countries that are working to rid LGBTQ activities in the society. Uganda enacted one of the world’s harshest anti-gay laws in May, which calls for the death penalty for certain same-sex acts.

    Following this, the country faced sanctions from international communities. The U.S. imposed a first round of visa restrictions on Ugandan officials in response to the law in June, and the World Bank halted new lending to the country in August.

    The concern now is Ghana could face similar sanctions and be blocked from receiving financial aid from countries that uphold LGBTQ rights. But Parliamentarians have noted that Ghana is poised to withstand whatever pro-LGBTQ countries throw at them.

    Already, the UN High Commissioner for Human Rights, Volker Türk, has described the passage of bill as “profoundly disturbing.”

    A portion of the UN Human Rights statement read “I call for the bill not to become law. I urge the Ghanaian Government to take steps to ensure everyone can live free from violence, stigma and discrimination, regardless of their sexual orientation or gender identity. Consensual same-sex conduct should never be criminalized.”

  • 1.96m Ghanaians experience severe food, malnutrition challenges – World Bank report

    1.96m Ghanaians experience severe food, malnutrition challenges – World Bank report


    Approximately 1.96 million Ghanaians face severe food insecurity, as reported by the latest World Bank Food Security Update.

    Ghana ranks 9th in West and Central Africa for the highest population experiencing food and nutrition insecurity.

    The report reveals that 34.7 million people in the region, representing 7.8% of the total population, are affected by acute food insecurity.

    Sierra Leone tops the list with 15.2%, followed by Chad with 12.1%, and Cameroon with 10.6%.

    Projections indicate a worsening situation during the upcoming lean season, with around 47 million people experiencing food insecurity, including 2.2 million in Ghana.

    Additionally, Burkina Faso, Mali, and Niger’s withdrawal from the Economic Community of West African States may impact intraregional trade and commerce, though the consequences remain uncertain.

  • 1.96 million Ghanaians are experiencing severe food and nutrition insecurity – World Bank

    1.96 million Ghanaians are experiencing severe food and nutrition insecurity – World Bank

    The latest Food Security Update by the World Bank has revealed that approximately 1.96 million Ghanaians are facing acute food and nutrition insecurity.

    This represents 6.1% of the total population facing acute food insecurity in West and Central Africa.

    Ghana is ranked 9th in the region with the highest population facing acute food and nutrition insecurity.

    According to recent estimates by the Cadre Harmonisé, approximately 34.7 million people (7.8% of the total population) in West and Central Africa were facing acute food and nutrition insecurity as of November 2023.

    The breakdown of the 10 most-affected countries according to the share of the population shows that Sierra Leone is first with 15.2% (1.17 million); Chad second with 12.1% (2.06 million) and Cameroon third with 10.6% (2.94 million).

    Burkina Faso came 4th with 9.9% (2.28 million), whilst Nigeria-8.9% (18.47 million), Niger-8.9% (2.3 million) Mauritania-6.3% (171,494) and Togo-6.2% (377,920) came 5th, 6th, 7th, and 8th respectively.

    The report added that the food and nutrition insecurity situation is expected to worsen in the upcoming lean season (June–August 2024).

    Cadre Harmonisé projections indicate that approximately 47 million people (10.5% of the total population) will experience acute food and nutrition insecurity (IPC Phase 3-5) over this period, including 26.5 million people in Nigeria, 3.2 million in Niger, 3.0 million in Burkina Faso, 2.9 million in Chad, 2.5 million in Cameroon, 2.2 million in Ghana, 1.5 million in Sierra Leone, 1.4 million in Mali, and 1.0 million in Côte d’Ivoire.

    In the first week of February, Burkina Faso, Mali, and Niger publicly announced their withdrawal from the Economic Community of West African States.

    The report added that although the consequences are unclear, the three countries’ exit from the economic bloc could affect intraregional trade and commerce.

    Food-Security-Update-C-February-15-24-1Download
  • Ghana, 27 developing countries broke; no escape anytime soon – World Bank

    Ghana, 27 developing countries broke; no escape anytime soon – World Bank

    The World Bank has revealed that 28 developing economies, including Ghana, with the weakest credit ratings, are currently trapped in a cycle of debt with little prospect of breaking free in the near future.

    The Bretton Woods institution noted that these countries had an average debt-to-Gross Domestic Product ratio of nearly 75% by the end of 2023, which is 20 points higher than the average for developing economies.

    In an article, “A silent debt crisis is engulfing developing economies with weak credit ratings”, however, it said some developing economies are finally seeing the light at the end of the tunnel, global inflation is receding and global interest rates appear to have peaked, prompting a bond-issuance rush by these economies to refinance their debt before the opportunity vanishes.

    “In early January, Mexico, Indonesia, and several other developing economies easily raised more than $50 billion from bond investors. Yet 28 developing economies—those with the weakest credit ratings— remain stuck in a debt trap with no hope of escape anytime soon. Their average debt-to-GDP ratio was nearly 75% at the end of 2023—20 points greater than the typical developing economy”.

    “They account for a quarter of all developing economies with credit ratings and 16.0% of the global population. However, their collective economic activity constitutes a mere 5.0% of global output, which makes it easy for the rest of the world to ignore their predicament. Their debt crisis, as a result, is silent—and it could intensify”, it added. 

    The World Bank emphasized that these economies require urgent assistance from the international community.

    This assistance should include debt relief for some countries and an improvement in the global debt restructuring framework, as the current framework has provided little relief to the countries most in need.

    “A good start would be to build the fiscal space necessary for economic growth and resilience. Overlapping crises of the past five years deepened the debt challenges, but fiscal imprudence was often the original cause of their troubles. Before they lost access to capital markets, their governments had borrowed too much, especially in foreign currencies—the equivalent of nearly 30% of their GDP on average”, it added. 

    Meanwhile, Ghana, one of the affected countries, remains in debt distress, according to the Debt Sustainability Analysis. Additionally, the analysis by the World Bank and the International Monetary Fund indicates that Ghana’s debt is unsustainable.

    “Given the ongoing debt restructuring and large and protracted breaches to the DSA thresholds, Ghana is currently in debt distress and the debt sustainability analysis shows that debt is unsustainable.”

    It continued that “Ghana lost international market access in late 2021, and the macroeconomic situation became more challenging in 2022, with large losses in international reserves, sharp depreciation of the exchange rate, and soaring inflation. The deterioration of market sentiment widened Eurobond spreads to above 2900 basis points at end-December 2022, and they have remained in distressed territory”.

    However, with the existence of the IMF program, there are expectations that Ghana’s debt situation will change and become sustainable by 2026.

  • COCOBOD to allocate part of $200M World Bank loan to recover cocoa-swollen shoot virus-infested plantations

    COCOBOD to allocate part of $200M World Bank loan to recover cocoa-swollen shoot virus-infested plantations

    Ghana’s Cocoa Board (COCOBOD) plans to utilize a portion of a $200 million World Bank loan to restore plantations devastated by the cocoa swollen shoot virus, which leads to decreased yields and tree fatalities, according to the regulator’s Deputy Chief Executive in charge of operations.

    The disease has decimated approximately 500,000 hectares of farmland and diminished cocoa production in the West African nation, which is the world’s second-largest cocoa producer after its neighbor Ivory Coast.

    Ghana’s cocoa output fell to 600,000 metric tons last year, down from a peak of 1.048 million tons in the 2020/21 season, due to the cocoa swollen shoot virus, aging plantations, illegal mining, and smuggling, which have all had a negative impact on the sector.

    A project information document indicates that a total of $132.8 million from the loan secured by the government last year, along with counterpart funding, will be used by Cocobod to rehabilitate farms and enhance knowledge about the virus strains.

    “The rehabilitation will take a minimum of five years to start getting economic production,” Cocobod’s Emmanuel Opoku told Reuters, adding that efforts had been hampered by the country’s economic crisis and the board’s limited funds.

    The board will intervene by taking control of disease-infected farms, removing and replacing sick cocoa trees, nurturing them to a fruiting stage, and then returning them to farmers.

    In 2018, COCOBOD utilized a portion of a $600 million Africa Development Bank (AfDB) loan to revitalize aging plantations and those impacted by the disease.

    However, the program, originally intended to cover 156,000 hectares of plantations, was affected by Ghana’s most severe economic crisis in a generation, marked by soaring inflation and sharp depreciation of the cedi currency, Opoku explained.

    He mentioned that the AfDB initiative benefited over 88,000 hectares of farmland, with 40,000 hectares set to be returned to farmers in the “coming days.”

    Alhassan Bukari, president of the country’s Cocoa, Coffee, and Sheanut Farmers’ Association, emphasized the need for aggressive rehabilitation efforts, as many farmers have been affected.

    Ghana’s graded and sealed cocoa arrivals dropped by 35% between the start of this season on September 1 and January 31 this year due to the intensity of the seasonal dry Harmattan wind and what COCOBOD described as production challenges.

  • World Bank projects high food inflation globally in 2024

    World Bank projects high food inflation globally in 2024

    In its latest Food Security Update report, the World Bank has forecasted continued high food prices throughout 2024.

    The report also highlights significant inflationary pressures across different income brackets in 2023.

    According to the Washington-based institution, inflation surpassed 5% in 63.2% of low-income countries in 2023, marking a 1.3% increase compared to the previous update in January 2023. In lower-middle-income countries, inflation remained above 5% in 73.9% of nations, while in upper-middle-income countries, it affected 48% of the countries, showing no change from the previous update.

    High-income countries also experienced food inflation above 5% in 44.4% of cases, which represents a 1.9% decrease compared to the previous update. Additionally, in a substantial majority (71%) of the 165 countries surveyed, food price inflation outpaced overall inflation rates.

    The International Food Policy Research Institute (IFPRI) has attributed a recent 40% decline in trade volumes in the Suez Canal to attacks by Houthi rebels in the Red Sea. This disruption has heightened concerns about global food security.

    The World Bank’s Global Economics Prospects 2024 report has underscored the significant challenge of food insecurity amidst various global challenges.

    “In 2023, food prices, a significant component of the agricultural price index, declined by 9% because supplies of major crops were ample, except for rice, which declined by 27%. Food prices are expected to decline further in 2024 and 2025, although potential risks such as energy cost increases, adverse weather events, trade restrictions, and geopolitical uncertainty could affect them”, it stated.

    The report continued that a blog post from the World Bank Agriculture and Food Global Practice discussed the urgent need for circular food systems to address environmental challenges.

  • World Bank supports Ghana’s resilience and recovery initiatives

    World Bank supports Ghana’s resilience and recovery initiatives

    In general, the World Bank Group yesterday welcomed the Official Creditors’ Committee’s agreement on important details of Ghana’s proposed debt restructuring under the G20 Common Framework.

    In line with the Joint WB-IMF Debt Sustainability Framework, this agreement is a significant step toward the nation’s return to debt sustainability.

    “This agreement will help unlock financial support by international financial institutions, including a US$300million budget support operation supported by IDA that will be considered by the World Bank’s Board of Executive Directors next week. This will help Ghana in its recovery, attracting investments and restoring a sustainable growth path,” said Ousmane Diagana, World Bank Vice President for Western and Central Africa.

    The Resilient Recovery Development Policy Operation marks the initial phase of a trilogy, amounting to US$900 million. It is a pivotal component of the World Bank’s extensive involvement, aiding crisis response and fostering resilience in Ghana.

    Ghana is actively executing US$4.3 billion in commitments from the World Bank, channeling resources into national and regional projects.

    These initiatives are concentrated on catalyzing private sector development and job creation, facilitating inclusive service delivery, and promoting sustainable, resilient development.

  • World Bank Group applauds debt restructuring agreement

    World Bank Group applauds debt restructuring agreement

    The World Bank Group, in principle, has endorsed the accord on fundamental parameters of Ghana‘s proposed debt restructuring, as reached by the official creditors’ committee under the G20 Common Framework 

    This agreement, aligning with the Joint WB-IMF Debt Sustainability Framework, marks a pivotal step towards reinstating debt sustainability within the nation.

    “This agreement will help unlock financial support by international financial institutions, including a US$300million budget support operation supported by IDA that will be considered by the World Bank’s Board of Executive Directors next week. This will help Ghana in its recovery, attracting investments and restoring a sustainable growth path,” said Ousmane Diagana, World Bank Vice President for Western and Central Africa.

    The Resilient Recovery Development Policy Operation, the initial installment in a trilogy amounting to US$900 million, stands as a key component of the expansive World Bank commitment to bolster crisis response and resilience efforts in Ghana. 

    The nation channels US$4.3 billion in World Bank commitments through a range of national and regional projects, emphasizing private sector development, job creation, inclusive service delivery, and sustainable, resilient development. 

  • World Bank praises key progress in Ghana’s Debt Restructuring talks

    World Bank praises key progress in Ghana’s Debt Restructuring talks

    World Bank Group has commended the Official Creditors’ Committee under the G20 Common Framework for reaching an agreement in principle on the fundamental terms of the proposed debt restructuring for Ghana.

    In a released statement, the World Bank noted that the agreement, aligning with the Joint World Bank-International Monetary Fund Debt Sustainability Framework, marks a significant milestone in the journey towards re-establishing debt sustainability in Ghana.

    “This agreement will help unlock financial support by international financial institutions, including a $300 million budget support operation supported by IDA, which will be considered by the World Bank’s Board of Executive Directors next week.

    This will help Ghana in its recovery, attracting investments and restoring a sustainable growth path,” said Ousmane Diagana, World Bank Vice President for Western and Central Africa.

    The Resilient Recovery Development Policy Operation constitutes the initial phase of a comprehensive series of three operations, amounting to $900 million. This initiative is a crucial aspect of the broader World Bank commitment to assist Ghana in crisis response and enhance resilience.

    Ghana is set to actualize $4.3 billion in commitments from the World Bank, channeling these funds into national and regional projects aimed at fostering private sector development, job creation, inclusive service delivery, and sustainable resilient development.

  • IMF/World Bank to give Ghana $1.15 billion by by end of February 2024 – Report

    IMF/World Bank to give Ghana $1.15 billion by by end of February 2024 – Report

    Ghana is poised to secure approximately $1.15 billion in funding from the International Monetary Fund (IMF) and the World Bank by the end of February.

    This development coincides with ongoing negotiations among bilateral creditors to finalise the country’s debt restructuring terms.

    The Minister of Finance expressed confidence in reaching a memorandum of understanding with official creditors during a meeting scheduled for January 8.

    Ghana awaits an agreement with bilateral creditors, which is crucial for the IMF executive board to assess Ghana’s performance under the PC-PEG program.

    The IMF program, initiated in May with the approval of the first $600 million tranche, anticipates the arrival of the second tranche from the $3 billion bailout.

    Despite delays, the board is expected to convene on January 18, with the second tranche likely reaching Ghana’s account after initial expectations for the end of 2023.

    “A board approval will also “trigger” the process for two World Bank disbursements totaling $550 million, said Ofori-Atta. The Bank has committed $300 million in budgetary support and another $250 million towards Ghana’s Financial Stability Fund, so “we are in good shape,” Bloomberg said.

  • LGBTQ rights activist from Uganda stabbed “near death”

    LGBTQ rights activist from Uganda stabbed “near death”

    A well-known activist for LGBTQ rights in Uganda, Steven Kabuye, was stabbed almost to death by unknown attackers while he was going to work this morning, according to his organization.

    “He is very sick, and we hope you can pray for him,” said Coloured Voice -Truth to LGBTQ on social platform X.

    A video on Mr. Kabuye’s account showed him in a lot of pain, with a knife in his stomach and an obvious cut on his arm.

    Frank Mugisha, who fights for people’s rights, said that Uganda should not have hate crimes.

    He said on X that we want the police to do a complete investigation.

    The police have not said anything yet.

    Uganda made one of the strictest laws against being gay last year.

    The law made a lot of people around the world very angry. The World Bank stopped giving money to Uganda and the US stopped letting certain officials from Uganda into the country.

    Anyone found guilty of being part of homosexual acts could go to jail for their whole life under the law.

    Rights organizations want the highest court to cancel the law because they think it goes against the rights of fairness and respect.

    The government is saying that the law protects the values of traditional families and is arguing in the case.

    Rights groups reported that over 300 LGBTQ people in Uganda were abused in the first eight months of last year. The abuses included beatings, torture, arrests, and being forced out of their homes.

  • Taliercio O’Brien appointed World Bank Country Director for Ghana, 2 others

    Taliercio O’Brien appointed World Bank Country Director for Ghana, 2 others

    The World Bank has announced the appointment of Robert Taliercio O’Brien as the Country Director for Ghana, Liberia, and Sierra Leone in the Western and Central Africa Region, effective January 2, 2024.

    Mr. Taliercio, an American national, brings a wealth of experience to this role, having joined the World Bank in 2000 as a Young Professional in the Africa region.

    Throughout his career at the World Bank, Mr. Taliercio has held various key positions, including Practice Manager, Lead Economist, and Country Economist in multiple regions such as East Asia and the Pacific, Europe and Central Asia, and Africa.

    His most recent assignment was as Regional Director in the Latin America and Caribbean Region for the Equitable Growth, Finance, and Institutions (EFI) Department.

    Prior to joining the World Bank, Mr. Taliercio served as a Lecturer in Public Finance at the Harvard Institute for International Development and as a Manager for HIID’s Program on Investment Appraisal and Management. He also held a visiting professor role at the Bolivian Catholic University.

    Mr. Taliercio has made significant contributions to the field, having written on public finance policy and administration in academic journals, books, and development publications.

    He has received service awards from the Ministers of Finance of the Republic of Korea and the Kingdom of Cambodia. In his new position, Mr. Taliercio’s key priorities will include leading strategic dialogue with the mentioned countries, supporting the implementation of the Africa Region’s priorities, deepening policy dialogue and partnerships with governments and key stakeholders, and overseeing the delivery and implementation of the lending and non-lending portfolio.

    Mr. Taliercio holds a PhD and a Masters in Public Policy from Harvard University, a Master of Arts in Latin American Studies from Stanford University, and a Bachelor of Arts in Public and International Affairs from Princeton University. His extensive academic background, coupled with his diverse professional experience, positions him well for this significant role in the World Bank’s operations in the Western and Central Africa Region.

  • We provided guidance to avert Ghana’s economic crisis – World Bank Country Director

    We provided guidance to avert Ghana’s economic crisis – World Bank Country Director

    The outgoing Country Director of the World Bank, Pierre Frank Laporte, is pushing back against accusations of inadequate intervention to prevent Ghana from facing its recent economic challenges.

    Ghana’s recent economic challenges resulted in its designation as debt distressed by both the World Bank and the International Monetary Fund.

    The country faced challenges such as inflation surpassing 50%, leading to debt restructuring due to difficulties in meeting financial obligations.

    “Maybe government did not heed to our advice in terms of what they had to do to prevent the economy from going into that direction”, Mr. Laporte said.

    Mr. Laporte, speaking on the PM Express Business edition with host George Wiafe on December 21, 2023, refuted claims that the World Bank could have utilized project funds to influence the government’s economic policies.

    He clarified that the World Bank can provide advice but cannot impose economic policies on sovereign nations, emphasizing that decisions approved by the World Bank Board for projects cannot be altered in the host nation.

    “We can advise. It is government decision to take the advice or not. One thing I can assure you is that we did everything in our power to prevent Ghana from getting to that state, he disclosed.

    Addressing concerns about public criticism, Mr. Laporte stated that he preferred expressing criticisms in meetings and boardrooms to achieve results, rather than publicly criticizing the government.

    He maintained that public criticism was not part of his duties as Country Director.

    In advising the government to sustain recent economic gains, Mr. Laporte emphasized the importance of fiscal discipline, especially in an election year, to ensure the ongoing economic recovery is not compromised.

    “I cannot sit in Ghana here and say that funds should not be approved”, he stressed.

     “I am not the type of Country Director who will also go out in public and events criticise a government. I will rather do my criticisms in meetings and the boardrooms which will really get the results”.

    Despite acknowledging the positive trends, he warned that without necessary measures, the situation could deteriorate.

    Mr. Laporte assured that the World Bank remains ready to support Ghana to ensure that recent economic gains positively impact the lives of its citizens.

  • We advised but govt rejected our suggestions on saving the economy – World Bank Director

    We advised but govt rejected our suggestions on saving the economy – World Bank Director

    Outgoing World Bank Country Director, Pierre Frank Laporte, is disputing allegations of not taking adequate measures to avert Ghana’s recent economic crises.

    Speaking on PM Express Business Edition on December 21, 2023, he said “We can advise. It is government decision to take the advice or not. One thing I can assure you is that we did everything in our power to prevent Ghana from getting to that state, he disclosed.

    Mr. Laporte rejected the suggestion that the World Bank could have utilized project funds and other financial support as leverage to influence the Ghanaian government’s approach to managing the economy. He emphasized that decisions approved by the World Bank Board for projects are binding and cannot be altered in the host nation.

    “I cannot sit in Ghana here and say that funds should not be approved”, he stressed.

     “I am not the type of Country Director who will also go out in public and events criticise a government. I will rather do my criticisms in meetings and the boardrooms which will really get the results”.

    The country’s economic challenges led to its classification as debt-distressed by the World Bank and the International Monetary Fund after conducting a Debt Sustainability Analysis on Ghana.

    Key macroeconomic indicators, such as inflation exceeding 50%, and the government undertaking debt restructuring due to challenges in meeting debt obligations, have raised concerns about the country’s economic stability.

    Mr. Laporte advised government to be strict on fiscal discipline to ensure that recent gains are sustained.

    “It’s very important to focus critically on fiscal discipline, especially in an election year to ensure that the recovery that the economy is witnessing is not affected”.

    Despite the recovery, he warned that things could get out of hand, if the necessary measures are not instituted.

    “The World Bank also stands ready to support the country to ensure that the recent gains impact on the livelihood of Ghanaians”, he said.

  • 2024 elections one of the biggest threats to Ghana’s economic progress – World Bank Director

    2024 elections one of the biggest threats to Ghana’s economic progress – World Bank Director

    The World Bank Country Director, Pierre Laporte, has affirmed the positive state of the Ghanaian economy.

    Mr Laporte noted that the economy has genuinely improved to a certain extent. However, he emphasized the need for sustained efforts to ensure this marginal stability, especially as the country approaches elections next year.

    The World Bank Country Director who was speaking on PM EXPRESS BUSINESS Edition said, “When you look at where Ghana’s economy was a year or two years ago and you look at the macro-economic numbers now, like inflation, you may come to accept that things have improved”.

     “We still see the election year as one of the biggest threats to the marginal stability that we are witnessing. We have to do a lot to ensure that fiscal discipline is maintained,” he added.

    The World Bank Country Director also said “maybe the reforms should have been early enough to deal, with the challenges with the economy then”.

    The government has previously attributed one of the significant economic shocks in recent times in Ghana to the Russian-Ukraine War and the COVID-19 pandemic.

    However, some economists and analysts have criticized this explanation, contending that the government did not establish the necessary shock absorbers to protect the economy from such shocks.

    But responding to the issue, the World Bank Country Director argued that, even though he believes there is some element of truth, “We didn’t do well in the area of mobilising the required revenue to support the economy.”

    Mr. Laporte, however, applauded the country for turning the economic situation around.

    “I am responsible for other countries in the region, and I still see how they are still struggling to recover.”

    He added, “It has been very difficult in Liberia, in Sierra Leone. Things are very tough, these economies that were hit by COVID-19 are also struggling.”

  • Remittance flows grow in 2023 – World Bank reports

    Remittance flows grow in 2023 – World Bank reports

    The World Bank’s Migration and Development Brief, released today, highlights concerns about the potential decline in real income for migrants in 2024 amid global inflation and low growth prospects.

    Remittances to low- and middle-income countries (LMICs) experienced an estimated growth of 3.8% in 2023, a moderation from the high gains of the previous two years.

    In 2023, remittance flows to LMICs reached an estimated US$669 billion, supported by resilient labor markets in advanced economies and Gulf Cooperation Council (GCC) countries, enabling migrants to send money home.

    Remittance inflows grew for Latin America and the Caribbean (8%), South Asia (7.2%), East Asia and the Pacific (3%), and sub-Saharan Africa (1.9%). However, flows to the Middle East and North Africa fell for the second year, declining by 5.3%, mainly due to a sharp drop in flows to Egypt. Remittances to Europe and Central Asia also decreased by 1.4% after a gain of more than 18% in 2022.

    The United States remained the largest source of remittances, with the top five recipient countries being India ($125 billion), Mexico ($67 billion), China ($50 billion), the Philippines ($40 billion), and Egypt ($24 billion).

    Economies where remittance inflows represent substantial shares of GDP include Tajikistan (48%), Tonga (41%), Samoa (32%), Lebanon (28%), and Nicaragua (27%), emphasizing the importance of remittances for funding current account and fiscal shortfalls.

    The trajectory of weaker global economic activity is expected to result in a further softening of remittance growth to LMICs, projected at 3.1% in 2024. Factors contributing to this moderated forecast include slowing economic growth and the prospect of weaker job markets in several high-income countries. Additional downside risks include volatile oil prices, currency exchange rates, and a deeper-than-expected economic downturn in high-income countries.

    “During crises, migrants have weathered risks and shown resilience to support families back home. But high inflation and subdued global growth is affecting how much money they can send,” said Iffath Sharif, global director of the Social Protection and Jobs Global Practice at the World Bank. “Labor markets and social protection policies in host countries should be inclusive of migrants, whose remittances serve as a vital lifeline for developing countries.”

    As per the Remittances Prices Worldwide Database from the World Bank, remittance costs remain consistently high, averaging 6.2% to send US$200 in the second quarter of 2023. In comparison to the previous year, sending money to all regions has become more expensive, with the Middle East and North Africa being the only exception.

    Banks continue to be the most expensive channel for sending remittances, with an average cost of 12.1%, followed by post offices (7%), money transfer operators (5.3%), and mobile operators (4.1%).

    “Remittances are one of the few sources of private external finance that are expected to continue to grow in the coming decade. They must be leveraged for private capital mobilization to support development finance, especially via diaspora bonds,” said Dilip Ratha, lead economist and lead author of the report.

    “Remittance flows to developing countries have surpassed the sum of foreign direct investment and official development assistance in recent years, and the gap is increasing.”

    A dedicated segment of the report explores the potential of mobilizing diaspora finances for development and fortifying a country’s debt position. Diaspora bonds offer a structured approach to directly access diaspora savings held in foreign destinations. Many nations have provisions for nonresident deposits aimed at attracting diaspora savings.

    However, in contrast to diaspora bonds, these savings often exhibit short-term and volatile characteristics. Leveraging future remittance inflows as collateral presents an opportunity to reduce the costs of international borrowing for developing countries.

    Given their substantial size compared to other foreign exchange sources, counter-cyclical nature, and indirect contribution to public finances, remittances can play a crucial role in enhancing a country’s sovereign ratings and its capacity to meet debt obligations.

    Regional remittance trends

    Remittances to East Asia and the Pacific rose by approximately 3% to reach $133 billion in 2023. Excluding China, the region witnessed a 7% growth in remittances, amounting to $83 billion, supported by sustained flows to the Philippines. The average cost of sending $200 to the region was 5.9% in the second quarter of 2023, with a projected remittance growth of 2.4% in 2024.

    Meanwhile, remittance flows to Europe and Central Asia faced an estimated 1.4% decline, amounting to $78 billion in 2023. This subdued growth is attributed to the high baseline in 2022, driven by substantial transfers from Russia, coupled with weakened flows to Russia and Ukraine. The average cost of sending $200 to the region was 6.9% in Q2 2023, with a projected 1.2% decline in 2024.

    In Latin America and the Caribbean, remittance flows are anticipated to surge by 8% to $156 billion in 2023. The robust U.S. labor market positively impacted remittance flows, with a projected 9.7% increase to Mexico. The average cost of sending $200 to the region was 6.1% in Q2 2023, and growth is expected to slow to 4.4% in 2024.

    The Middle East and North Africa are forecasted to experience a 5.3% decline in remittance flows to $61 billion in 2023, primarily due to a significant drop in flows to Egypt. Remittance flows to South Asia grew by 7.2% to $189 billion in 2023, led by robust flows to India, projected to reach $125 billion. The average cost of sending $200 to the region was 4.3% in Q2 2023, with a forecasted growth slowdown to 5% in 2024.

    Sub-Saharan Africa is expected to witness a 1.9% increase in remittance flows to $54 billion in 2023. Key contributors include strong growth in Mozambique (48.5%), Rwanda (16.8%), and Ethiopia (16%). Remittance flows to the region are projected to increase by 2.5% in 2024, with an average cost of sending $200 at 7.9% in Q2 2023.

  • Afghanistan surpassed by Myanmar as world’s largest producer of opium

    Afghanistan surpassed by Myanmar as world’s largest producer of opium

    Myanmar now makes more opium than any other country in the world, surpassing Afghanistan, according to a report from the United Nations.

    This year, it’s expected that the amount of opium made will increase by 36% to 1,080 tonnes, which is much more than the 330 tonnes that Afghanistan is said to have made.

    Poppy growing in Afghanistan decreased by 95% after the Taliban rulers banned the drug last year.

    At the same time, farming has grown in Myanmar because a violent civil war has made it a profitable way to make money.

    Jeremy Douglas, who works for the United Nations and wrote the report, says that the problems with the economy, safety, and government since the military took over in February 2021 are making farmers in faraway places turn to growing opium to survive.

    For many years, opium has been grown in Myanmar. It is used to make the dangerous drug heroin. The money made from selling opium has been used to support rebel groups who are fighting against the government.

    However, in the last year, while the civil war caused by the 2021 coup continued, farming has grown by about 18%. The report also says that farming has become more advanced and productive because of the use of well-organized fields, irrigation systems, and sometimes fertilizers.

    More and more people are starting to grow the crop because prices are going up. The pandemic and Myanmar’s bad economy has made growing opium more appealing as a job. A new report from the World Bank says the country is not expected to grow much.

    Shan State is a place in Myanmar where there has been a lot of fighting between some armed groups and the military. It is also the biggest producer of opium in Myanmar. The fighting in Shan has gotten worse and has even affected big mafia families who got rich from gambling, scams, and drugs. However, the rebel groups still depend on selling opium to get money for their activities.

    Mr Douglas said that the fighting in Shan and other border areas will probably cause more opium to be made.

    The report also said that more opium is being grown in the northern Shan State, as well as in Chin and Kachin states, where rebel groups are fighting the army.

    Opium farming has been an important way for people in Shan to make money, even though their land is not very good for growing crops. Many people who lost their jobs in other parts of Myanmar have been coming back to Shan. They have found work growing opium there.

    Making and selling heroin is the most money-making business in the opium industry. The report says that this year, Myanmar has exported around 154 tonnes of heroin, which is worth about $2. 2 billion

    The place where Myanmar, Thailand, and Laos meet is called the Golden Triangle. People there have been making a lot of opium and heroin for a long time. Most of the heroin sold around the world comes from Myanmar and Afghanistan.

  • World Bank allocates $150m for West Africa Food System Resilience Programme Phase-2

    World Bank allocates $150m for West Africa Food System Resilience Programme Phase-2

    The World Bank has allocated approximately US$150 million for the second phase of its West Africa Food System Resilience Programme (FSRP) in Ghana, Chad, and Sierra Leone.

    Over one million individuals are expected to benefit from this five-year initiative, which aims to enhance food systems and risk management in the region, addressing shared challenges such as climate-related disruptions and natural disasters.

    Implemented through Ghana’s Ministry of Food and Agriculture and various partners, the FSRP will focus on specific value chains, including rice, maize, soybeans, and broiler poultry, across 55 districts and ten regions.

    Anchored on sustainability, ownership, and public-private engagement, the program aims to strengthen digital advisory services, enhance agricultural innovation systems, and facilitate food trade in West Africa.

    Pierre Laporte, the Country Director of the World Bank, emphasized the project’s role in combating the global food and nutrition crisis and its potential to alleviate extreme poverty and malnutrition while safeguarding development gains.

    “We all aim to ensure that the resources of this US$150million project are used in the most efficient way to reach the intended one million-plus beneficiaries, of whom 40 percent are intended to be women. It is also intended to continue expanding access to irrigation in the Kpong, Vea, Wheta and Tanoso schemes and inland valleys; increase adoption of climate smart technologies and services by nearly 250,000 farmers; bring digitised hydro and agrometeorological advisory services to at least 200,000 food systems actors; develop integrated landscape management plans and bring thousands of hectares of land under sustainable landscape management practices; and provide matching grants for agribusiness to maximise finance for development,” he said.

    The project’s coordinator, Osei Owusu Agyeman, highlighted that the Ghana component of the initiative will focus on rehabilitating crucial equipment and infrastructure, including the CSIR, Regional Centres of Excellence, Plant Genetic Resources Research Institute (PGRRI), National Gene Bank, GLDB Seed Lab, and Veterinary Centers.

    Additionally, the West Africa Food System Resilience Programme (FSRP) will facilitate inter-regional trade and knowledge-sharing through partnerships with ECOWAS, CORAF, and CILSS.

    At the project’s launch in Kumasi, Ashanti Regional Minister Simon Osei-Mensah, representing the Minister of Food and Agriculture, emphasized the contribution of FSRP, similar to the Planting for Food and Jobs (PFJ) phase-two, in enhancing the resilience of the country’s food systems.

    He expressed gratitude to the World Bank for the project and assured support from his ministry and other stakeholders to achieve FSRP’s objectives.

    “I call on all players in the value chain – civil society, the fourth estate, political players of all sides, traditional leaders, the youth and all passionate patriots – to come and join forces with us to wrestle food system risks hands-on until they are significantly subdued. I pledge my full backing for the task ahead, as we in Ghana play our efficient part in the charge against food system risks in the West African sub-region,” the minister added.

  • Parliament approves World Bank loans worth $350m

    Parliament approves World Bank loans worth $350m

    Parliament has granted approval for two loan agreements from the World Bank estimating $350 million.

    On Friday, the House approved a loan agreement of $150 million from the International Development Association of the World Bank. The loan is allocated for the West Africa Coastal Areas Resilience Investment Project 2.

    The objective of the project is to enhance the socio-economic resilience of coastal communities by promoting effective coastal management practices.

    Additionally, it seeks to aid the government in its endeavors to diminish the vulnerability of coastal areas and the local communities residing along the country’s coastlines.

    The Chairman of the Finance Committee of Parliament, Kwaku Kwarteng, has presented a motion for the approval of a $150 million loan from the International Development Association of the World Bank. This loan is intended to address challenges posed by tidal waves in coastal areas, including Keta in the Volta Region.

    In addition, Parliament has also given its approval for a separate loan agreement of $200 million from the World Bank Group. This funding is earmarked for the Ghana Tree Crop Diversification Project, reflecting a commitment to supporting initiatives that promote diversification in the country’s agricultural sector.

  • World Bank aims to bring electricity to 100m Africans by 2030 – President Ajay Banga

    World Bank aims to bring electricity to 100m Africans by 2030 – President Ajay Banga

    President of the World Bank, Ajay Banga, unveiled an ambitious plan during the mid-term review of the International Development Association’s (IDA) $93 billion replenishment package.

    Banga emphasized this initiative as an example of how funds from the bank’s International Development Association, offering zero- or low-interest loans to low-income countries, can make a significant impact.

    He urged donor countries to provide support, highlighting the anticipation of 1.1 billion young people in the Global South reaching working age over the next decade.

    What the president said:

    “But how can we hope to make even adequate progress while 600 million people in Africa – 36 million of whom live here in Tanzania – still don’t have access to reliable electricity? Put simply: We can’t.”

    Banga talked about the bank’s current assessment of the $93 billion IDA replenishment round. In the next round, which is set for December 2024, he said he hoped donors would break yet another record.

    “We are pushing the limits of this important concessional resource and no amount of creative financial engineering will compensate for the fact that we need more funding,” he said.

    After attending the COP28 climate summit in Dubai, Banga, the former CEO of Mastercard Inc., arrived in Zanzibar. During an interview in Dubai on Sunday, he shared his reflections on the experience.

     “There is a lot of energy. There seems to be political alignment. I’m going to take all the tailwind I can get.”

    A significant section of the populace struggles with unreliable electricity across the continent. Numerous factors, such as the high cost of electricity and insufficient infrastructure, contribute to the lack of accessibility to electricity in many regions.

  • Smuggling network exposes Nepalis defending Russia

    Smuggling network exposes Nepalis defending Russia

    Twelve people in Nepal were arrested for smuggling young men into Russia’s army. This has brought attention to the fighters from Nepal.

    This week, Nepal requested Russia to send back Nepali soldiers because six of them died in a fight in Ukraine.

    The smugglers reportedly took $9,000 from each man to bring them into the country on tourist visas, according to Kathmandu police.

    It is not known how many Nepali people are in the army of Russia, but it is believed to be at least a few hundred.

    The ambassador of Nepal to Russia said that about 150-200 Nepali people are fighting for Russia. Locals also say that many people are signing up every week to fight for money and residency visas.

    The BBC knows that people from Nepal are still going to Russia to join the military. Many people got hurt in the war and are getting help in hospitals in Russia.

    Nepal is very poor. About 40% of the people there are living in poverty, according to the World Bank.

    It mostly doesn’t allow people to join foreign armies, but there are exceptions for Gurkha soldiers to join the Indian and British armies. It’s difficult to enforce this ban.

    Russia is trying to add more soldiers to its army as its fight with Ukraine continues. It has hired soldiers from places like Georgia, Syria, and Libya.

    Nepali police said on Thursday that there is no evidence that Russia was directly involved in hiring Nepali mercenaries.

    The country of Nepal has asked Russia to stop using Nepali soldiers. It also called the Russian ambassador in Nepal to remind him of Kathmandu’s position.

    Police Chief Kumud Dhungel said that they found some Nepali people were given letters inviting them to visit Russia.

    The police think that these brokers might help the mercenaries travel to Russia through India or Dubai so they can avoid being questioned at the airport in Nepal. He said that they asked the Indian authorities for help with their investigation.

    On Monday, Nepal requested for the bodies of six soldiers who died in a battle to be returned to Nepal.

    However, the ambassador of the country in Russia, Milan Raj Tuladhar, told the BBC that there has been no progress in this matter so far.

    The victim’s sister told the BBC that she has been asking for help from Nepali authorities to get compensation and bring her brother’s body back.

    The Russian military has already buried the bodies, according to the authorities. “The woman, who didn’t want to give her name, said they should talk to the Russian government to help us. ”

    In June, the BBC said that lots of young people from Nepal went to Russia with student and work visas. Some of them even joined the Russian army to make money and become citizens of Russia.

    “Everyone is aware of Nepal’s economy. ” “What should we do if we return there. ” one of the soldiers asked in a video on TikTok.

    According to a government spokesperson, it was reported this week by the Kyiv Post that there were Nepalis fighting with Ukrainian forces, but the exact number is not known.

    It’s not clear if Nepali people working as soldiers in other countries are sending money back to their families in Nepal.

    But sending money home is very important for many families in rural Nepal. The International Labour Organization says 3. 5 million Nepali people work in other countries, mostly in the Middle East, South East Asia, and India.

  • “We are the poorest people on the globe” – Akufo-Addo says begging for cheaper loans

    “We are the poorest people on the globe” – Akufo-Addo says begging for cheaper loans

    President Nana Akufo-Addo has appealed to the International Monetary Fund (IMF) and the World Bank to help poor and vulnerable countries access cheaper loans to finance their climate action plans.

    He made this call while speaking at the COP28 climate summit in Dubai, where world leaders are meeting to discuss how to tackle the global climate crisis.

    Akufo-Addo said that historically, countries like Ghana and other African nations have been paying more for borrowing money than those who have more resources and wealth.

    He said that this situation was unfair and unsustainable, and that it could only be reversed if the IMF and the World Bank became catalysts for bridging the gap between the rich and the poor.

    “Become bridges for countries like my own and the vulnerable countries to be able to access that … Historically the monies that we have access to have been the most expensive monies in the world, we are the poorest people on the people and when we borrow money we pay more for it than those who have money. That is a situation that can only be reversed if the World Bank and the IMF become this catalyst for being able to access the large monies that are out there. I think that for us for what we have seen in Ghana, it is something extremely important. That is one of the important decisions that have been taken by the …. (inaudible)” he said.

    Akufo-Addo also highlighted the efforts that Ghana has made to implement its climate action plan, which includes increasing renewable energy, restoring degraded lands, and promoting green jobs. He said that Ghana was committed to achieving its targets under the Paris Agreement, but that it needed more support and resources from the international community.

    COP28 is the 28th annual United Nations (UN) climate meeting where governments will discuss how to limit and prepare for future climate change. The summit is being held in Dubai, in the United Arab Emirates (UAE), from 30 November until 12 December 2023.

  • Why World Bank invested about $17m in Cheddar’s No. 1 Oxford Street building

    Why World Bank invested about $17m in Cheddar’s No. 1 Oxford Street building

    It has come to light that the World Bank’s International Finance Corporation (IFC) played a pivotal role in financing the groundbreaking Number One Oxford Street Hotel & Suites in Osu, a US$51.4 million aparthotel project facilitated by the enterprising Nana Kwame Bediako, also known as Freedom Jacob Caesar or Cheddar of the Kwarleyz Group.

    This transformative investment not only reshaped Ghana’s hospitality landscape but has also sparked conversations about the evolving dynamics between traditional hotels and the burgeoning aparthotel trend.

    A recent tweet by Bright Simmons brought attention to the IFC’s substantial contribution, providing about $17 million, equivalent to one-third of the project’s costs.

    “The World Bank’s IFC financed ~1/3rd of the cost of this swanky ~$50m aparthotel built by maverick Ghanaian investor, Cheddar. Aparthotels/serviced apartments are a threat to hotels in Ghana but not uniformly. Occupancy for 4 & 3 star hotels have dropped massively but not 5-stars,” he wrote.

    This investment stands as a testament to the growing influence of aparthotels, which blend the convenience of apartments with the luxury of hotels.

    Managed by service operator Ascott, the Number One Oxford Street Hotel & Suites is set to redefine long-stay accommodations in Ghana.

    The Independent Ghana verified Simmons’ information, which aligns with the IFC’s official documentation. The extensive project, jointly undertaken by Wonda World Estate (WWE) and the Cola Group, boasts a strategic location, offering 104 apartments, 4 penthouses, retail and leisure spaces, basement parking, and upscale amenities like a swimming pool, restaurant, bar, gym, and spa.

    The IFC’s environmental and social review in 2017 ensured the project adhered to rigorous standards in areas such as human resources, labor conditions, health and safety, waste management, and stakeholder engagement.

    As the world-renowned IFC continues to champion innovative projects like Cheddar’s aparthotel, the hospitality industry in Ghana is undergoing a paradigm shift.

    The investment not only reflects a changing consumer landscape but also signifies the growing importance of alternative accommodation options in Ghana’s dynamic hospitality market.

  • World Bank funded Cheddar’s No. 1 Oxford Street building – Bright Simmons reveals

    World Bank funded Cheddar’s No. 1 Oxford Street building – Bright Simmons reveals

    Vice president in charge of research at IMANI Centre for Policy and Education, Bright Simmons has disclosed that the International Finance Corporation (IFC) of the World Bank funded one-third of the $51.4 million aparthotel, Number One Oxford Street, developed by Ghanaian investor Cheddar.

    Verification by The Independent Ghana supports Simmons’ revelation, with details on the IFC’s website outlining their involvement in the 14-storey upscale building, comprising 104 apartments and four penthouses.

    The IFC contributed a senior loan of up to $9.0 million and a syndicate loan of $9.0 million towards the total project cost. Strategically located in Osu, Accra, the aparthotel features retail and leisure spaces, basement parking, a swimming pool, restaurant, bar, gym, and spa.

    Simmons highlighted the IFC’s backing of two more aparthotel projects in Ghana, developed by the Mohinani Group, signifying a notable shift in the hospitality landscape. He also underscored the potential threat aparthotels pose to the traditional hotel sector, particularly in the mid-range segment.

    According to Simmons, the occupancy rates for four-star and three-star hotels in Ghana have declined significantly over the past seven years, from 60% and 62% in 2014 to 45% and 35% in 2023, respectively. This decrease is attributed to the competitive advantage of aparthotels, offering better value for money and enhanced convenience for travelers. While five-star hotels are less affected, challenges may arise in the future.

    He noted that due to this, around 80% of hotel projects in Ghana are reportedly on hold, reflecting the shifting dynamics in the sector.

    This revelation prompts inquiries about the potential influence of internationally funded aparthotels on the local hotel industry and the wider economic implications for Ghana.

    The future of Ghana’s hospitality industry hinges on the coexistence and mutual complementation of traditional hotels and aparthotels in the evolving market.

  • Akosombo dam spillage: World Bank pledges $150 million in aid for Ghana

    Akosombo dam spillage: World Bank pledges $150 million in aid for Ghana

    During the 3rd Conference on Fisheries and Coastal Environment in Accra, the World Bank expressed its commitment to supporting the Ghanaian government in addressing the humanitarian crisis in the Lower Volta region.

    This crisis stemmed from the flooding caused by the spillage of the Akosombo Dam by the Volta River Authority, which resulted in the displacement of thousands of residents along with the loss of their homes, farms, and businesses.

    Michelle Keane, the Operations Manager of the World Bank in Ghana, Liberia, and Sierra Leone, conveyed the World Bank’s sympathy for the affected victims and affirmed the organization’s readiness to assist the government’s efforts in addressing this situation.

    “We can’t speak about flooding today without conveying the World Bank’s sincere empathy and concern for the ten thousand people who have been impacted by the recent floods along the Volta River,” she said. “The World Bank would want to express its readiness to support the government in its response to this crisis.”

    Keane also expressed optimism that the Ghanaian government would make use of a $150 million loan facility to safeguard coastal communities from flooding by implementing a sustainable, long-term strategy.

    “In the longer term, developing a sustainability and risk management strategy for the Volta River and Volta Delta, among other areas, will be crucial to determining where it is safe for people to live and how their livelihoods can be sustained and grow along the Volta River supported by a healthy ecosystem,” she said.

    “We hope that the government and its partners will take full advantage of the $150 million approved by the World Bank for Ghana under the West Africa Coastal Areas Management Programme (WACA). The financing is expected to become available very soon after parliamentary approval,” Keane added.

  • Today in History: World Bank warns 1m Ghanaians at risk of falling into poverty

    Today in History: World Bank warns 1m Ghanaians at risk of falling into poverty

    On November 3, 2022, Pierre Laporte, the Country Director of the World Bank, stated that if immediate action is not taken to address climate shocks, approximately one million Ghanaians may become impoverished.

    He said that by 2050, impoverished households’ incomes might be cut by as much as 40%.

    Read the full story originally published on November 3, 2022

    As a result of climate shocks, at least one million more people may become impoverished, according to the World Bank’s most recent Country Climate and Development Report for Ghana, unless quickly remedied.

    By 2050, income for low-income households could potentially drop by as much as 40%, according to the report.

    According to the report, policies and investments from the public and private sectors should be combined to create a development pathway that increases resilience to climate change and promotes the shift to low-carbon growth.

    “Ghana’s economic and human development is vulnerable to climate change. On average, flooding affects around 45,000 Ghanaians every year, and half of Ghana’s coastline is vulnerable to erosion and flooding as a result of sea-level rise,” Pierre Laporte, World Bank Country Director for Ghana, Liberia, and Sierra Leone stated in a Joy FM report.

    According to the World Bank’s assessment, Ghana must promptly address the growing threat of rising temperatures and heat stress, which can harm crop and labor productivity. Additionally, the increasingly unpredictable rainfall patterns pose risks to buildings and infrastructure.

    The report emphasizes the broader consequences of land degradation, water insecurity, and local air pollution on human capital and overall productivity.

    Despite achieving significant development milestones over the past thirty years, Ghana’s progress has decelerated, as highlighted by the World Bank. The report explicitly states that the West African nation has not effectively harnessed its natural resources to build the necessary infrastructure, human capital, and institutional capacity for sustainable growth.

    “The report demonstrates that Ghana can simultaneously pursue its long-term development and climate goals,” Pierre Laporte added. “Ghana’s contribution to global greenhouse gases emissions is small, with emissions on a per capita basis at 24% of the global average. The country can take a more resilient development pathway, avoiding costly lock-ins, leapfrogging to cutting-edge technologies, and starting to mobilize climate finance.”

    The World Bank Group’s Country Climate and Development Reports identified six priority areas for a Climate Resilient and Low Carbon Development pathway that will foster a greener, resilient, and inclusive growth in the country.

    Others include the new core diagnostic reports that explore the interlink between climate change and development. They help countries prioritize the most impactful actions that can foster a low-carbon transition and boost resilience while delivering on broader development goals.

    CCDRs build on data and rigorous research and identify main pathways to reduce GHG emissions, their externalities and climate vulnerabilities, including the costs and challenges as well as benefits and opportunities from doing so.

  • World Bank lends $1 billion to South Africa to address electricity problem

    World Bank lends $1 billion to South Africa to address electricity problem

    The World Bank will give South Africa $1 billion to help the country fix its energy problem. South Africa is experiencing its worst-ever power outages.

    There have been electricity cuts since 2007, but they have become worse recently, with periods of no electricity lasting up to 16 hours every day.

    The World Bank says that the often power outages have really hurt South Africa’s economy and made their GDP growth slower.

    The World Bank said in a statement that the loan supports South Africa in tackling its energy crisis and moving towards a fair and eco-friendly economy. The loan was approved by the board.

    Most of South Africa’s electricity comes from burning coal. As a result, the country is considered the 14th biggest producer of carbon dioxide in the world.

    The World Bank said that the loan will help South Africa improve its state-owned power company, Eskom, which owes more than $26 billion.

  • Poverty on the rise in Ghana – World Bank Country Director

    Poverty on the rise in Ghana – World Bank Country Director

    The World Bank’s Country Director, Pierre Laporte, has revealed the significant impact of soaring inflation in 2022 on the overall living standards, particularly among the most vulnerable members of society.

    He pointed out that the number of Ghanaians living in extreme poverty has increased since the previous year, with more than a quarter of the population now surviving on less than GH¢24 per day, equivalent to less than two dollars.

    The recent surge in inflation in Ghana has severely eroded the purchasing power of affected households, mainly because their incomes have not kept pace with the rising cost of living.

    “It is expected that the current economic woes the country has endured may have pushed many more Ghanaians into poverty, and food insecurity worsened by the last quarter of 2022 when inflation was at its peak,” Mr Laporte said on October 18 at a ceremony to mark End Poverty Day at the World Bank Office in Accra.

    Mr. Laporte conveyed these concerns on October 18 during an event marking End Poverty Day at the World Bank Office in Accra. The event was held under the theme “Delivering growth to people through better jobs in Ghana.”

    Looking ahead, when considering the path to recovery, he emphasized the need for structural reforms to strengthen long-term growth prospects and economic stability.

    He suggested that policies supporting investment and human capital development, along with efforts to enhance resilience and crisis preparedness, particularly in the fields of agriculture and food systems, were crucial to bolstering long-term growth prospects.

    Mr. Laporte noted that well-targeted investments could create better jobs, reduce income inequality, and enhance productivity. He underscored that employment and job opportunities were the most effective means to alleviate poverty and inequality. Furthermore, empowering women, girls, and young people could amplify the positive impact on communities and across generations.

    The World Bank, he explained, is adapting its vision and mission in response to a series of global crises that have disrupted development progress.

    The institution is working on a new playbook that focuses on improving and modernizing financing capabilities, delivery models, and efficiency, among other aspects, with the goal of promoting inclusive development that doesn’t come at the expense of vulnerable populations, ultimately leading to an improved quality of life and more job opportunities for people around the world.

  • World Bank to support Ghana’s budget with $300m in December

    World Bank to support Ghana’s budget with $300m in December

    The World Bank is anticipated to provide Ghana with $300 million in budget support in December 2023.

    Information regarding Ghana’s program with the World Bank was obtained during the Annual IMF/World Bank meetings in Marrakech, Morocco, according to JoyBusiness.

    Sources close to the Bank in Washington DC, USA have disclosed that Ghana has largely met the conditions for the final approval, which is expected to be granted by the Bank’s Board. The World Bank Board’s approval is anticipated to come shortly after the IMF Board’s approval, which is scheduled for November 22, 2023, following the Staff Level Agreement reached after the First Program Review.

    The World Bank is also set to disburse around $250 million to support the Ghana Financial Stability Fund, aimed at assisting banks impacted by the Domestic Debt Exchange Programme (DDEP).

    The Finance Ministry has indicated that the Ghana Financial Stability Fund should commence by the end of October 2023, and the government is expected to contribute approximately $700 million as part of its seed capital for the Fund.

    World Bank sources have noted that Ghana has made significant progress in other programs aimed at restructuring the economy. It is anticipated that the World Bank will extend over $500 million to Ghana in budget support and other initiatives by the end of this year.

    If Ghana secures approval from the IMF Board for around $600 million in the third week of November 2023, the country could receive more than $1.2 billion from these two institutions. Additionally, the African Development Bank is expected to provide support once Ghana secures the IMF Board’s approval following the first program review.

    A World Bank report released in July 2023 titled “Price Surge: Unraveling Inflation Toll on Poverty and Food Security” projected that Ghana’s economy would recover to its full potential in 2025 but cautioned that growth might slow down in 2023 and remain subdued in 2024. The report called for Ghana to sustainably increase domestic revenue, particularly through the streamlining of tax incentive regimes and revenue administration improvement.

    Notably, the IMF, in its latest assessment following the first program review by its staff, has suggested that Ghana’s economy may experience growth exceeding the previously projected 1.5 percent. Finance Minister Ken Ofori Atta expressed optimism that the economy would grow by over 2.5 percent by December 31, 2023.

  • Create more jobs for 11m youth entering the labor market yearly – World Bank to African govts

    Create more jobs for 11m youth entering the labor market yearly – World Bank to African govts

    The World Bank has offered a crucial recommendation to Sub-Saharan African nations, stressing the urgent necessity to generate improved employment opportunities for a larger portion of their populations.

    This is seen as essential to address the requirements of the expanding populace.

    The World Bank’s analysis indicates that Sub-Saharan Africa will encounter the most rapid growth in the working-age population compared to all other regions. Over the next three decades, there is a projected net increase of 740 million individuals by 2050 in this region.

    “In Sub-Saharan Africa, an urgent need arises for creating better jobs for more people to meet the needs of growing populations. Over the next three decades, the region will experience the fastest increase in the working-age population of all regions, with a projected net increase of 740 million people by 2050”.

    In the forthcoming decades, the Sub-Saharan African region is expected to witness a significant influx of youth into the labor market, with estimates ranging from eight to eleven million annually. However, the region is currently generating only about three million new formal wage jobs each year.

    The October 2023 Africa Pulse Report from the World Bank highlights the need to align the wage-employment ratio with the upper middle-income country average of 36%. Achieving this objective would necessitate an annual wage employment growth rate of 8.3% in Sub-Saharan Africa, which is notably higher than the rate of 5.4% recorded over the past two decades.

    “Gross domestic product (GDP) in Sub-Saharan Africa as a whole grew by a meager 1.4% annually between 1991 and 2019, despite experiencing a growth spurt from 2000 until around 2014 during which annual rates accelerated to 28%.

    Even during this period of faster growth, the share of working-age individuals with wage jobs increased only from 14 to 16%”.

    In Sub-Saharan African countries, a distinctive trend emerges: for every one percentage point increase in economic growth, the proportion of workers engaged in wage jobs rises by an average of 0.04%. This outcome is characterized by a limited translation of economic growth into employment opportunities in the region.

    By contrast, countries in East Asia exhibit a significantly different pattern, generating roughly twice the number of jobs for each one percentage point increase in economic growth.

  • World Bank projects 3.4% growth for West, Central Africa in 2023

    World Bank projects 3.4% growth for West, Central Africa in 2023

    The 2023 World Bank Annual Report’s growth projection for Western and Central Africa stands at 3.4% for 2023, showing a slight decrease from the 3.7% recorded in 2022.

    However, there is an expected acceleration to 3.9% in 2024.

    The 3.4% Gross Domestic Product (GDP) growth is higher than the anticipated 1.5% growth projected for Ghana in 2023.

    The World Bank report emphasizes that countries in Western and Central Africa are grappling with the complex impacts of various interconnected crises.

    These include factors like Russia’s invasion of Ukraine, leading to elevated global commodity prices, particularly for essential commodities such as wheat and energy. Additionally, challenges stem from the effects of climate change and the rising levels of debt distress across the region.

    “They also face rising food insecurity, driven by challenges such as fragility, high levels of poverty, environmental degradation, and low agricultural productivity”, it added.

    Moreover, the World Bank, headquartered in Washington, has expressed concern that over 41 million additional individuals in the region face heightened risks of food insecurity, with approximately 29 million relying on emergency food aid.

    In a broader context, the World Bank is actively broadening its collaborative efforts to bolster and advance Agenda 2063. This strategic framework is geared toward promoting inclusive and sustainable development across the African continent.

    “We support regional infrastructure networks, economic diversification, trade and transport, financial inclusion, human capital, and the resilience of people and communities. We are also focused on addressing fragility in the Lake Chad, Sahel, and Gulf of Guinea regions”, it added.

    During the fiscal year 2023, the World Bank greenlit a total of $12.0 billion in financial support for Western and Central Africa across 73 operations. This comprised $564 million in commitments from the International Bank for Reconstruction and Development (IBRD) and $11.4 billion in commitments from the International Development Association (IDA).

    It’s notable that roughly half of these commitments were directed to nations grappling with issues related to fragility, conflict, and violence.

  • Sanitation ministry denies receiving US$125M from World Bank

    Sanitation ministry denies receiving US$125M from World Bank

    The Minister for Sanitation and Water Resources, Freda Prempeh, has denied reports suggesting that her ministry received $125 million from the World Bank.

    These reports claimed that the funds were allocated for a five-year project aimed at training environmental inspectors to prosecute sanitation offenders.

    In response, Minister Prempeh clarified that these reports misrepresented her ministry’s activities.

    During the commissioning of 38 institutional toilet facilities in the Ashanti Region, she explained that the $125 million mentioned in the reports was actually the total budget for the ongoing four-year Greater Accra Metropolitan Area (GAMA) Sanitation and Water project, which began in 2021.

    She emphasized that the training of environmental prosecutors is just one component of this broader project, which spans four years.

    “Recently, we saw a viral video, a publication going around indicating that the World Bank had given the Ministry of Sanitation and Water Resources $125 million.

    “Let me put on record here that the World Bank has not dumped any money in my office as is being speculated around that 125 million has been given to the Ministry of Sanitation and Water Resources,” she said.

    Minister Prempeh further clarified that the $125 million referred to a larger project with multiple components, but the entire amount had not been allocated to her ministry in one lump sum.

    “Indeed, they have a project that together has about four components which sum up to $125 million which was started years ago, some being taken in Kumasi and some in Accra.

    “And yet somebody somewhere decided to do his own story that $125 million had been given to the Minister of Sanitation. No such monies have been dumped in my office,” she stated.

  • LIVESTREAMING: Ghana delegation holds press briefing at IMF, World Bank Annual meetings

    LIVESTREAMING: Ghana delegation holds press briefing at IMF, World Bank Annual meetings

    Finance Minister, Ken Ofori-Atta, Leader of Ghana’s Delegation to the 2023 IMF/World Bank Annual meetings in Marrakech (Morocco), held a press conference today.

    Meanwhile, Ken Ofori-Atta, has characterized the IMF-World Bank Annual Meetings as an opportunity to initiate a fresh start for the global financial structure.

    Addressing a Roundtable Discussion on “IMF Policy Priorities,” Mr. Ofori-Atta urged the IMF to bolster the global financial safety net by implementing substantial reforms to the global financial framework, stressing that “we need to stretch the IMF to do more.”

  • $125m World Bank support: ‘No such monies have been dumped in my office’ – Sanitation Minister

    $125m World Bank support: ‘No such monies have been dumped in my office’ – Sanitation Minister

    The Minister for Sanitation and Water Resources, Freda Prempeh, has refuted claims that her ministry received $125 million from the World Bank for a five-year program aimed at training environmental inspectors to pursue sanitation offenders.

    She issued this statement in Kumasi during the inauguration of 38 institutional toilet facilities spanning eight district assemblies in the Ashanti Region on Friday.

    The minister clarified that the reports misrepresent what her ministry officials conveyed during the training of environmental prosecutors in Tamale the previous month.

    In her clarification, she pointed out that the $125 million represented the entire budget for the four-year Greater Accra Metropolitan Area (GAMA) Sanitation and Water project, which commenced in 2021.

    Furthermore, she elaborated that the training of environmental prosecutors was merely one component within the capacity-building aspect of the four-year project.

    “Recently, we saw a viral video, a publication going around indicating that the World Bank had given the Ministry of Sanitation and Water Resources $125 million. Let me put on record here that the World Bank has not dumped any money in my office as is being speculated around that 125 million has been given to the Ministry of Sanitation and Water Resources,” she said.

    “Indeed, they have a project that together has about four components which sum up to $125 million which was started years ago, some being taken in Kumasi and some in Accra. And yet somebody somewhere decided to do his own story that $125 million had been given to the Minister of Sanitation. No such monies have been dumped in my office,” she stated.

    The objective of the Greater Accra Metropolitan Area (GAMA) Sanitation and Water Project for Ghana is to increase access to improved sanitation and improved water supply in the GAMA, with emphasis on low income communities and to strengthen management of environmental sanitation in the GAMA. 

    The project has four components. The first component is provision of environmental sanitation and water supply services to priority low income areas of the GAMA.

    The second component is improvement and expansion of the water distribution network in the GAMA. The third component is planning, improvement and expansion of GAMA-wide environmental sanitation services.

    The fourth component is institutional strengthening. This component will provide technical assistance (TA) to municipal, metropolitan and national institutions, including the promotion of private sector initiatives.

  • World Bank allocates $70b for digital development in Ghana and other nations

    World Bank allocates $70b for digital development in Ghana and other nations

    The World Bank has allocated approximately $70 billion to support digital infrastructure development in Ghana and other developing nations.

    The Bank is actively engaging in research and communication with African and other developing countries to identify investment needs and provide necessary assistance.

    During a panel discussion at the WBG/International Monetary Fund (IMF) Annual Meetings in Marrakech on the topic “Building foundations for an inclusive digital future,” Mr. Axel Van Trostsenburg, Senior Managing Director, Development Policy and Partnership at the World Bank, emphasized the importance of bridging the digital divide between advanced and low-income countries. He stressed that a financial commitment is essential, as digital infrastructure cannot be built on hope alone.

    In response to this need, the International Development Association (IDA), a subsidiary of the World Bank, is making $70 billion of its $93 billion replenishment available to Africa to support digital infrastructure and other developmental projects.

    Trostsenburg highlighted the importance of developing physical digital infrastructure and connecting it to the objectives of the African Continental Free Trade Area (AfCFTA), emphasizing the potential for significant economic growth through regional integration under AfCFTA.

    He called for a multifaceted approach, including regulatory support, infrastructure development, and mobilizing private sector finance to foster digital development.

    Ursula Owusu-Ekuful, Ghana’s Minister of Communications and Digitalisation, shared Ghana’s challenges in digital acceleration, citing insufficient access to finance due to global economic difficulties. The government is exploring Private-Private Partnerships (PPPs) to increase high-speed internet access.

    Despite challenges, Ghana has launched various programs to benefit people of all backgrounds, from students to the working population, including farmers and individuals with disabilities. These initiatives have led to remarkable progress, with individuals who had never encountered computers now becoming software and robotic engineers.

    Ghana is set to host the first global cybersecurity capacity-building conference in November 2023, aimed at strengthening capacities in the global south and reducing reliance on costly consultants for managing digital infrastructure.

  • West Africa experiences economic expansion despite coups

    West Africa experiences economic expansion despite coups

    Sub-Saharan Africa’s economic recovery exhibits significant variations, with some subregions outperforming the regional average while others lag behind. The World Bank conveyed this information in its semi-annual report, “Africa’s Pulse,” assessing the continent’s economic performance based on regional dynamics.

    According to the report, regions like the East African Community and the West African Economic and Monetary Union (WAEMU) are surpassing the regional average in 2023, while the Economic and Monetary Community of Central Africa (CEMAC) and major economies like Nigeria and South Africa are underperforming.

    This diversity in growth is closely linked to economic and political stability or instability in different areas, with pockets of high development coexisting with regions of slower growth. Notably, more than three-quarters of Sub-Saharan Africa’s GDP is generated by its ten largest economies, but seven of them are currently growing below their long-term average rates. Countries like Sudan, Ghana, and Angola are expected to experience slower growth in 2023 compared to their performance from 2001 to 2019.

    However, there is optimism for most nations, as the report forecasts an increase in development for the majority of countries in the region, with the projected annual average growth rate for 2024-25 exceeding that of 2023 for 39 out of the 47 countries in the region.

    Furthermore, the report highlights a decline in growth for Nigeria, the largest economy in West Africa, from 3.3 percent in 2022 to 2.9 percent in 2023.

    Nigeria’s “oil production remains below the OPEC+ quota amid capacity issues and lower international oil prices. Non-oil economic activity—particularly industry and services—still supports growth, although policy actions to remove fuel subsidies and unify the exchange rates might be weighing on these activities in the short term,” the report reads in part.

  • Sub-Saharan Africa to have a 3rd seat on IMF board – Kristalina Georgieva

    Sub-Saharan Africa to have a 3rd seat on IMF board – Kristalina Georgieva

    Sub-Saharan Africa is set to gain a “more influential representation” at the International Monetary Fund (IMF), as it is being allocated a third seat on the global lender’s executive board, according to IMF Chief Kristalina Georgieva in an announcement made to AFP.

    This development comes in advance of the IMF and World Bank meetings taking place in Marrakesh, Morocco, marking the first such gathering on the African continent since 1973.

    The IMF’s executive board, overseen by Georgieva, oversees the institution’s daily operations and currently comprises 24 directors.

    The United States, as the world’s largest economy, holds the largest share of votes, followed by economic powerhouses Japan, China, and Western Europe, which are ahead of other regions and developing nations in terms of representation.

    “I have some good news for Africa. We are advancing a preparation to have a third representative of sub-Saharan Africa in our executive board,” Georgieva told AFP in Abidjan, Ivory Coast, last week Thursday.

    “Ultimately, what it will mean is (a) stronger voice for Africa,” the IMF’s managing director added.

    The World Bank has additionally declared its intention to establish a third seat for African nations on its board, with the official decision set to be made during the October 9-15 meetings in Marrakesh.

    During the meetings in Morocco, both the IMF and World Bank will address the challenging matter of institutional reform, responding to increasing demands for more effective solutions to address debt and climate change issues in less affluent countries.

    ‘Brighter prospect’

    Georgieva noted that economic growth in sub-Saharan Africa has slowed down this year to a rate of three percent.

    “The impact of war (in Ukraine) was devastating, especially coming on top of COVID-19,” she said.

    “Countries with limited fiscal capacity were particularly severely impacted.”

    Inflation, which soared in the wake of Russia’s full-scale invasion of Ukraine, caused “additional hardship on people”, Georgieva added.

    Moscow’s invasion sent food prices soaring as both Russia and Ukraine are major exporters of agricultural goods.

    Georgieva praised countries “for being very prudent in dealing with inflation”, which has gone down in many nations, and prioritising public spending in a way that allows them to lower deficits.

    “We expect some brighter prospects for sub-Saharan Africa in 2024,” the Bulgarian economist and former European Commission vice-president said.

    “But it is hard. We still see that food prices are particularly high, and that translates into (a) terrible fate for 144 million people having difficulty in feeding themselves and/or their families,” she said.

    She warned against measures such as price caps or subsidising fuel to help people cope with inflation, as they “ultimately benefit rich people even more than poor people”.

    “What we want is countries to win the fight against inflation,” Georgieva said.

    “It’s not going to happen if we throw in more money without good fundamentals for the economy to run efficiently,” she added.

    Instead of subsidies, she said, “What we are strongly recommending is to give direct support to the poorer part of the population”.

    Despite the IMF’s ongoing provision of special assistance, including zero-interest loans, in response to the COVID-19 pandemic, Georgieva expressed her intention to urge both nations and the private sector to increase their contributions to aid developing countries. She emphasized the need for greater support in light of the ongoing challenges.

    ‘Lost decade’

    The World Bank warned in a report on Wednesday that sub-Saharan Africa’s economic outlook “remains bleak”.

    The institution warned that the region could face “a lost decade of growth”, pointing to “rising instability” with “increased incidences of attempts to destabilise governments by unconstitutional or violent means in recent years”.

    The Sahel region in particular has been the scene for more than a decade of jihadist insurgency that has fuelled military takeovers in Niger, Mali and Burkina Faso.

    Despite the coups, Georgieva defended the IMF’s decision to maintain aid to those countries due to “humanitarian concerns”.

    “We have a responsibility to make sure there is at least minimum financial capacity,” she said.

    “Because the regimes are not there sufficiently for their people, it’s not an excuse for us to forget about the men, women and children who need us.”

  • World Bank grants allocation of $125m to bolster capacity of sanitation ministry

    The World Bank has approved a funding of $125 million for Ghana aimed at enhancing the capacity of environmental officers.

    This allocation is intended to empower these officers in the prosecution of sanitation-related offenses within the judicial system, under the purview of the Ministry of Sanitation and Water Resources.

    This funding initiative follows a prior disbursement of $150 million by the World Bank in 2015, which was directed towards piloting the project in the Greater and Ashanti Regions of Ghana over a five-year period.

    During a two-day workshop held in Wa and attended by 40 environmental officers selected from the Upper East and Upper West regions, Charlotte Akwaah Adjei Marfo, the Programme Manager of the Ministry of Sanitation and Water Resources, emphasized that the enforcement of sanitation laws would significantly contribute to the improvement of sanitation conditions in the country and help mitigate flood disasters.

    “The workshop for environmental officers drawn from the Upper West and East Regions marked the take-off of the second phase of the project scheduled to end in 2024.

    “Some of the topics discussed at the workshop were the jurisdiction of the courts, the code of ethics for the environmental health prosecutors, summary trial of cases, and drafting of summons and charge sheets among others,” the report said.