The Board of Directors of the African Development Bank Group has given the green light for a $102.59 million grant to assist Ghana’s government in its Fiscal Consolidation and Economic Recovery Program. This initiative is aimed at bolstering recent fiscal consolidation and economic recovery reforms in the country.
The program’s goals include strengthening fiscal consolidation measures, increasing resource mobilization to support government investments, and improving the financial sector to attract private investment in key areas like agriculture. Overall, it is designed to advance the government’s economic recovery efforts by enhancing public finances, boosting productivity, and creating jobs.
The grant, provided by the African Development Fund, the group’s arm for concessional lending, was approved on October 31. The African Development Fund offers concessional funding to promote economic and social development in 37 eligible African countries.
The program is set to run for two years, from 2023 to 2024, with close collaboration between the Ghanaian government and the African Development Bank. It complements an ongoing International Monetary Fund (IMF) Extended Credit Facility in Ghana.
Abdoulaye Coulibaly, Director of the Governance and Economic Reforms Department of the African Development Bank, highlighted the close partnership between the institution and the Ghanaian government in preparing for the grant. He emphasized the importance of seizing the opportunity during challenging economic times to address structural weaknesses in Ghana’s economy.
Ghana’s economic difficulties have been exacerbated by global factors, including the COVID-19 pandemic, global financial constraints, and the Ukraine conflict, which have added to domestic challenges affecting revenue generation and economic growth.
Deputy Director-General for the West Africa region at the African Development Bank, stressed the Ghanaian government’s commitment to the program’s identified reforms and reaffirmed the Bank’s continued support during this critical period.
Eyerusalem Fasika, Ghana Country Manager, welcomed the assistance for the program, seeing it as a timely intervention to help restore macroeconomic stability in Ghana. She emphasized the pivotal role of Public Finance Management in achieving fiscal consolidation and economic recovery, noting that it is the driving force behind the government’s various reforms to attain macroeconomic stability and sustainable growth.