The African Development Bank (AfDB) has approved $102.6 million budget support programme in an effort to support Ghana’s economy during its worst financial crisis in decades.
The programme was jointly unveiled by Ghana’s finance ministry and the African Development Bank on Thursday, with a primary focus on budgetary consolidation and economic restoration.
Ghana, known for its production of gold, cocoa, and oil, finds itself entangled in negotiations with bilateral and commercial creditors as it grapples with the daunting task of restructuring its debts. The nation has faced challenges accessing international capital markets, exacerbated by the mounting costs of domestic debt.
“The program will facilitate the government’s economic recovery reforms through enhanced public finance, increased productivity, and job creation,” highlighted AfDB’s representative, Eyerusalem Fasika, in a statement issued after the signing ceremony.
This financial infusion aligns seamlessly with Ghana’s existing extended credit facility with the International Monetary Fund (IMF). Fasika emphasized that the AfDB’s program complements the IMF’s support, reinforcing the nation’s commitment to comprehensive economic recovery.
In May, the IMF’s executive board granted Ghana a significant lifeline with a $3 billion loan spread over three years, featuring an immediate disbursement of approximately $600 million. Anticipation surrounds the imminent release of another tranche following Ghana’s anticipated debt-restructuring agreement with its official creditors.
Finance Minister Ken Ofori-Atta is set to present Ghana’s 2024 budget in parliament on November 15, providing a roadmap for the nation’s fiscal direction in the coming year. This injection of funds from the AfDB is poised to play a pivotal role in Ghana’s journey towards economic stability and resurgence.