The African Development Bank (AfDB) has given its approval for a budget support program of $102.6 million for Ghana, which will be focused on fiscal consolidation and economic recovery. This initiative comes as Ghana is grappling with its worst economic crisis in a generation and is currently in discussions with both bilateral and commercial creditors to restructure its debts.
The country has been facing challenges accessing international capital markets due to rising domestic debt costs.
The program is designed to assist the government in implementing economic recovery reforms, with a focus on improving public finance, enhancing productivity, and generating employment opportunities. Eyerusalem Fasika, the representative of the AfDB, mentioned that this program complements Ghana’s existing extended credit facility with the International Monetary Fund (IMF). In May, the IMF’s executive board approved a $3 billion loan for Ghana over three years, with an initial disbursement of approximately $600 million. Ghana anticipates receiving additional funds following a debt-restructuring agreement with its official creditors.
On November 15, Finance Minister Ken Ofori-Atta is scheduled to present Ghana’s 2024 budget in parliament, which will likely incorporate the support from the AfDB and the ongoing IMF program in its economic recovery efforts.