World Bank Grants Ghana $360m to Boost Economic Stability and Growth

The World Bank Board of Executive Directors has approved $360 million in financing from the International Development Association (IDA) to support Ghana’s Second Resilient Recovery Development Policy Financing.

The operation aims to assist the government in restoring macroeconomic stability and reinforcing the foundations for sustainable, resilient growth and job creation.

“The successful implementation of reform actions under the IMF program and the Development Policy Operations series has strengthened macroeconomic stability, restored investor confidence and laid a solid foundation for sustained economic recovery and inclusive growth.

“We are confident that the measures supported by this DPO will help our efforts to enhance fiscal discipline and build a more resilient and inclusive economy, capable of withstanding future shocks,” said Dr Cassiel Ato Forson, Minister of Finance.

The Second Resilient Recovery Development Policy Operation is part of a broader World Bank engagement supporting Ghana’s crisis response and long-term resilience.

Its objectives are to;

(1) Restore fiscal sustainability,

(2) Support financial sector stability and private sector development,

(3) Improve energy sector financial discipline and

(4) Strengthen social and climate resilience.

“Entrenching fiscal and debt sustainability, improving the business environment to attract investment and create jobs, addressing the long-rooted energy sector challenges, and protecting the most vulnerable measures supported by this financing, continue to be urgent priorities for Ghana,” said Robert Taliercio, Division Director for Ghana, Liberia and Sierra Leone.

According to the bank, “there are essential steps for the country to revitalise its domestic private sector, build resilience against climate change and improve the quality of life of its people.

“We look forward to continuing to support Ghana to accelerate and deepen these reforms going forward.”

The reforms supported under the operation aim to promote fiscal discipline and boost domestic revenue mobilization.

They also seek to stabilise the financial sector, encourage private investment, and improve the financial viability of the energy sector.

In addition, the program supports social protection reforms and the integration of climate considerations into policymaking, fostering inclusive and sustainable development.

 

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