AfDB expands support coverage in Ghana

The African Development Bank (AfDB) has expanded its support coverage in Ghana to include the private sector and state owned enterprises, Country Representative, Akin-Olugbane Mari-Laure has aid here.


According to her the multilateral institution had advanced a total of 230 million U.S Dollars to the government, public and private institutions in the country in 2015.


The official disclosed this, while signing an agreement to support Ghana’s fiscal consolidation and public financial management program with 56 million dollars in the first phase of the bank’s budget support for the country.

The facility has a one percent interest rate, 0.5 percent service charge and a 30 year maturation period.

According to the AfDB official, by venturing into private sector support in Ghana and also assisting some commercial entities of the state, the bank seeks to help the country diversify its economy, adding that one sector that will really play a great role in economic diversification is the agricultural sector.

“Ghana has been going through certain economic challenges in the area of fiscal imbalances, and as a long standing partner of the country, we at AfDB cannot remain inactive in the face of these challenges,” she stated.

She noted that the government had been taking some necessary measures to deal with the situation, which have been yielding some positive results in the area of reducing in fiscal deficit.

The Country Representative urged the government to sustain the fiscal consolidation measures which in order to bring the country’s economy back onto a healthy path.

The AfDB earlier this year advanced a 120 million dollar facility to the Ghana Airport Company Limited (GACL). It also granted Ghana a 72 million dollars facility for Energy Development and Access Program, as well as a Partial Risk Guarantee (PRG of 30 million dollars for power development.

Deputy Minister for Finance, Cassiel Atto Forson who signed for Ghana commended the bank for its confidence in Ghana, adding that the support for the energy sector would enable the energy sector to attract private financing, by enabling government to share risk with the private sector.

“This is expected to free up the much needed funds to tackle other pro-poor interventions,” Forson noted. Enditem

Source: Xinhua

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