The World Bank is expected to advance $300 million in budget support to Ghana in December 2023.
JoyBusiness picked up from persons with knowledge of Ghana’s programme with the World Bank on the sidelines of the Annual IMF/World Bank meetings in Marrakech Morocco.
Sources close to the Bank in Washington DC USA said Ghana has met almost all the conditions for the final approval to be granted by the Board of the Bank.
JoyBusiness understand that the World Bank Board approval could come as soon as the IMF Board which is expected to meet on November 22, 2023, approves the second tranche of funds after the country reached the Staff Level Agreement after the First Programme Review.
The World Bank is also expected to disburse some $250 million to the country as part of its contribution to the Ghana Financial Stability Fund, which is expected to assist Banks that have been hit badly by the Domestic Debt Exchange Programme.
According to the Ministry of Finance, government is expected to contribute about 700 million dollars as part of its seed capital for the Fund.
The Finance Ministry has told JoyBusiness that the Ghana Financial Stability Fund should take off by the end of October 2023.
Why is Ghana getting this support from the Bank?
JoyBusiness understands that this is based on some reforms that Ghana was expected to undertake to stabilise the economy, which it has completed.
The disbursement has been influenced by Ghana reaching a Staff-Level Agreement with the IMF on the first programme review last week.
World Bank sources have also maintained that Ghana has also made some significant progress in other programs aimed at helping to restructure the economy.
The World Bank could by the close of this year advance more than $500 million to Ghana in Budget support and other initiatives.
If Ghana is able to secure the IMF board approval of some $600 million in the third week of November 2023, then the country could get more than $1.2 billion from these two institutions.
The African Development Bank is also expected to come on board with some support when Ghana secures the IMF board approval on the first programme review.
World Bank on Ghana’s Economy
World Bank in a report released in July 2023 Titled: Price Surge: Unraveling Inflation Toll on Poverty and Food Security, projected that Ghana’s Economy will recover to its full potential in 2025.
However, it warned that growth will slow down in 2023 and remain depressed in 2024.
The report called on Ghana to sustainably collect more domestic revenue, notably by streamlining tax incentive regimes and improving revenue administration.
But the IMF in its latest assessment after the first programme review by its staff have indicated that Ghana’s Economy may grow more than the 1.5 percent projected.
Finance Minister Ken Ofori Atta in an interview with JoyBusiness noted that he expects the economy to grow more than 2.5 per cent by December 31 2023.
Source: myjoyonline.com
