The African Development Bank (AfDB) has given the green light to a $102.6 million budget support program for Ghana as part of the government's Fiscal Consolidation and Economic Recovery Program, the AfDB and the Ghanaian Ministry of Finance announced.
This initiative is intended to bolster recent fiscal consolidation and economic recovery efforts. Ghana, a major producer of gold and oil, has faced challenges in international capital markets due to escalating domestic debt costs. The country is currently engaged in discussions with bilateral and commercial creditors to restructure its debts amidst a severe economic crisis.
"This is a timely intervention that will propel efforts by the government of Ghana to restore macroeconomic stability in the country," AfDB's representative in Ghana, Eyerusalem Fasika, said in a statement released after the signing ceremony. "The program will facilitate the government's economic recovery reforms through enhanced public finance, increased productivity, and job creation."
According to the AfDB official, the bank's support program is designed to complement Ghana's existing extended credit facility with the International Monetary Fund (IMF).
Meanwhile, Joseph Ribeiro, the AfDB’s Deputy Director-General for the West Africa region, emphasized the importance of Ghana's commitment to the identified reforms, highlighting the Bank’s continued support during this critical period.
"The Bank remains steadfast to provide needed support for Ghana under the project and beyond, in line with the country’s development agenda and the Bank’s Country Strategy Paper for Ghana," Ribeiro said.
Ghana also maintains an ongoing extended credit facility with the IMF. Earlier in May, the IMF's executive board sanctioned a $3 billion loan over three years for Ghana, with an initial disbursement of about $600 million.
Ghana anticipates receiving a further tranche subsequent to sealing a debt-restructuring arrangement with its official creditors. Looking ahead, Finance Minister Ken Ofori-Atta is scheduled to unveil Ghana's 2024 budget in parliament on November 15, presenting a roadmap for the nation’s fiscal trajectory in the upcoming year.