In a significant stride toward economic recovery, Ghana and the African Development Bank (AfDB) have formalized a $102.59 million protocol agreement for budgetary support.
This financial boost is earmarked to fortify the government’s Fiscal Consolidation and Economic Recovery Programme, aimed at reinforcing recent fiscal consolidation and economic recovery reforms.
During the signing ceremony, Mrs. Abena Osei-Asare, Deputy Minister of Finance, emphasized that the grant “signified more than just financial assistance; it represented a vote of confidence in a partnership built on trust, shared objectives, and a firm belief in Ghana’s prospects.”
She further elaborated on the deepening partnership as the two parties agreed to implement the Budget Support Programme.
The comprehensive strategy behind the program is geared toward addressing immediate economic challenges, fostering sustainable growth, enhancing fiscal consolidation, and promoting inclusivity within Ghanaian society. Mrs. Osei-Asare expressed dedication to harnessing this potential for the benefit of all citizens.
The program is anticipated to elevate fiscal consolidation measures, contribute to increased resource mobilization, and bolster the financial sector to attract private investment, especially in critical areas like agriculture. Overall, the initiative seeks to facilitate the government’s economic recovery reforms, enhancing public finance, increasing productivity, and fostering job creation.
Mrs. Osei-Asare highlighted positive economic trends, with ongoing efforts in economic recovery, noticeable GDP growth, declining consumer price inflation, slowed exchange rate depreciation, and a diminishing budget deficit as a percentage of GDP.
Commending the African Development Bank for steadfast support during challenging times, Mrs. Osei-Asare acknowledged the Bank’s role as a true partner throughout unprecedented crises over the past three years.
She emphasized the adaptability and innovation displayed by Ghana during challenging times and expressed gratitude for the support received, particularly from the African Development Bank.
Madam Eyerusalem Fasika, Ghana Country Manager for the AfDB, emphasized the timeliness of the intervention to restore macroeconomic stability. She highlighted the catalytic role of Public Finance Management in driving the government’s diverse reforms to achieve the overarching objective of macroeconomic stability and sustainable growth.
Acknowledging global challenges, including the Covid-19 pandemic, global financial tightening, and geopolitical events such as Russia’s invasion of Ukraine, Madam Fasika stressed the significance of the grant from the African Development Fund, the Group’s concessionary lending arm.
The approved grant, initiated on Tuesday, October 31, 2023, will be executed over a two-year period from 2023 to 2024, in collaboration with the Ghanaian government. It complements an ongoing International Monetary Fund (IMF) Extended Credit Facility to the country.
The joint efforts of the Bank and the government in developing the program over the past few months were highlighted, with the signing ceremony marking a key milestone in the government’s endeavors to rebound the economy.
The active country portfolio of the Bank Group in Ghana involves 20 operations (15 public and 5 private), totaling 726 million USD across various sectors. The transport sector holds the largest share, followed by agriculture. The portfolio also encompasses projects in economic governance, energy, water and sanitation, and human capital development.
These ongoing projects, combined with the Budget Support Programme, are poised to bolster Ghana’s recovery and development efforts, contributing to the Bank’s high five priority dimensions in Ghana: Light Up and Power Ghana, Feed Ghana; Industrialize Ghana; Integrate Ghana; and Improve the quality of life of Ghanaians.
Mrs. Osei-Asare expressed confidence in the government’s commitment, stating, “We are confident that the government will remain committed to their forms identified in the programme to take full advantage of it to address the current difficult economic conditions faced by the country.”
She reaffirmed the commitment and availability of the Bank in supporting the efforts of the government and the people of Ghana in addressing the country’s recovery efforts and development agenda.
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