THE African Development Bank (AfDB) has approved a $102.6 million budget support programme targeted at enhancing Ghana’s fiscal consolidation and stimulating economic recovery. The announcement, made jointly by the bank and Ghana’s finance ministry, is a significant development in Ghana’s ongoing efforts to address its economic challenges.
Ghana, renowned for its production of gold, cocoa, and oil, has been grappling with its most severe economic crisis in a generation. The West African nation has engaged in negotiations with bilateral and commercial creditors to restructure its debts, a crucial step in managing its financial turmoil, which has led to surging domestic debt costs and restricted access to international capital markets.
AfDB’s representative, Eyerusalem Fasika, emphasised the programme’s core objectives, stating, ‘The programme will facilitate the government’s economic recovery reforms through enhanced public finance, increased productivity, and job creation.’ This infusion of financial support aligns with Ghana’s ongoing extended credit facility agreement with the International Monetary Fund (IMF).
Notably, in May, the IMF’s executive board granted Ghana a $3bn loan spanning three years, with an immediate disbursement of approximately $600 million. The disbursement was a pivotal financial lifeline for Ghana during its economic turbulence. The country is now anticipating another tranche following a prospective debt-restructuring agreement with its official creditors.
In related financial developments, Finance Minister Ken Ofori-Atta is slated to present Ghana’s 2024 budget in parliament on November 15, shedding further light on the nation’s strategies for fiscal recovery and economic revival.
The AfDB’s approval of the budget support programme underscores the international commitment to assisting Ghana in its journey toward economic stability and growth. It represents a substantial step in addressing the challenges and constraints that Ghana has faced, offering a promising path forward for the West African nation.