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The World Bank has officially disbursed the US$300 million loan facility to Ghana for budgetary support, with the amount being credited to the Central Bank’s account on Wednesday, March 27, 2023.
This disbursement marks the first installment of a series of three operations, each amounting to $300 million, aimed at crisis response and resilience in Ghana as part of the Resilient Recovery Development Policy Operation.
The influx of this fresh foreign funding is expected to bolster the Bank of Ghana’s reserves, aiding in the economic recovery efforts and mitigating the depreciation of the cedi.
The fund is intended to contribute to several key objectives, including restoring fiscal sustainability, promoting financial sector stability and private sector development, enhancing financial discipline within the energy sector, and bolstering social and climate resilience.
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Finance Minister Dr. Mohammed Amin Adam has affirmed the government’s commitment to adhering to the reforms supported by the World Bank-backed Development Policy Operations, even amidst the backdrop of an election year.
Specific reforms facilitated by this financing series encompass initiatives such as enhancing domestic revenue mobilization, exercising fiscal discipline, ensuring financial sector stability, fostering an environment conducive to private investment, addressing challenges within the energy sector, strengthening social protection mechanisms, and integrating climate adaptation and mitigation into policy frameworks.
Ghana anticipates a total disbursement of approximately $1.2 billion from its Development Partners, which include the International Monetary Fund, the World Bank, and the African Development Bank, by the conclusion of 2024.
