Accra: The World Bank Board of Executive Directors has approved a substantial US$360 million in funding from the International Development Association (IDA) to bolster Ghana's efforts to restore macroeconomic stability and build a resilient economy capable of generating employment and withstanding future economic disturbances. This financial commitment is a testament to international confidence in Ghana's recovery path and its dedication to implementing structural changes crucial for sustainable economic revival.
According to Ghana News Agency, the approval comes in the wake of a recent upgrade in Ghana's creditworthiness by Fitch Ratings and improvements in key macroeconomic indicators, notably the strengthening of the cedi against the Dollar. The US$360 million, part of the Second Resilient Recovery Development Policy Financing operation, builds on prior reforms coordinated with the International Monetary Fund (IMF) and previous World Bank development policy initiatives.
The funding is earmarked for promoting fiscal discipline and enhancing domestic revenue mobilization to stabilize the financial sector and attract private investments, ultimately fostering private-sector-led growth. Additionally, it is intended to support measures that improve the energy sector's financial sustainability, ensure efficient management, bolster social resilience, and integrate climate-related considerations into public policy, thereby advancing sustainable development.
Dr. Cassiel Ato Baah Forson, Ghana's Minister of Finance, credited the World Bank's financial assistance to the successful execution of ongoing reforms under the IMF programme and the Development Policy Operations (DPO) series, which have fortified macroeconomic stability. He noted that the country's improved economic outlook has rekindled investor confidence and set a robust foundation for sustained recovery and inclusive growth.
Robert Taliercio, World Bank Division Director for Ghana, Liberia, and Sierra Leone, highlighted the critical nature of these reforms for long-term economic viability. He underscored the importance of entrenching fiscal and debt sustainability, enhancing the business climate to attract investments and generate jobs, addressing longstanding energy sector issues, and safeguarding the most vulnerable. These priorities, supported by the financing, are essential for Ghana's economic transformation.
Taliercio expressed the World Bank's commitment to continuing its support for Ghana, emphasizing that the funding is part of an ongoing partnership rather than a one-off intervention. This operation is the second in a series of three, totaling US$900 million, and aligns with a broader World Bank strategy to aid crisis response and resilience in Ghana. The program focuses on four key areas crucial to Ghana's economic transformation: fiscal sustainability, financial sector stability, energy sector reform, and social and climate resilience.
The initiative aims to revitalize Ghana's domestic private sector, identified as vital for sustainable job creation and economic growth, reducing the country's reliance on government-driven economic activity and creating a more dynamic business environment that can attract both domestic and foreign investment.
