New World Bank partnership framework for Ghana

• Posted on February 24, 2022February 24, 2022
• by Nana Kwesi Coomson
• Comment

THE WORLD Bank Group’s (WBG) Board of Executive Directors has discussed a new five-year Country Partnership Framework (CPF) for Ghana for 2022 to 2026.

The CPF prioritises investments in human capital, job creation, economic diversification, building a resilient health system, and fostering a greener and more inclusive society.

Ghana has achieved considerable economic and social progress in the past 30 years. It achieved middle-income status in 2011 because of strong, sustained economic growth, averaging over 5 percent since the early 1990s.

This was supported by a stable democracy and driven largely by gold and cocoa exports and the development of substantial oil and gas reserves.  It achieved the first Millennium Development Goal (MDG) of halving poverty from 52.7 percent (1993) to 23.4 percent (2016).

However, the pace of poverty reduction has slowed in recent years, and inequalities in some areas continue, particularly in some northern areas of the country.

The CPF is expected to support Ghana in its COVID-19 and medium-term development agenda.  It is designed around three mutually reinforcing focus areas, namely Enhancing Conditions for Private Sector Development and Quality Job Creation; Improving Inclusive Service Delivery; and Promoting Resilient and Sustainable Development.

Exploiting the opportunities of digital transformation will be a cross-cutting theme. The $4.5 billion CPF was prepared jointly by the World Bank, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).

“The World Bank Group is happy to support Ghana’s economic recovery plan. The CPF is aligned with Ghana’s Coordinated Programme of Economic and Social Development Policies and will support the Government of Ghana in creating a competitive environment for the private sector to flourish and play a greater role in job creation particularly for youth,” said Pierre Laporte, World Bank Country Director for Ghana, Liberia and Sierra Leone. “The World Bank Group, through the CPF, will also support policies and programs that aim to strengthen digital transformation for improved service delivery and productivity, improve governance, and promote greater inclusion, including strengthening women’s economic empowerment.”

“To stimulate diversified private sector growth and create secure jobs, the World Bank Group will support a competitive environment for enterprise development,” said Kyle Kelhofer, IFC Senior Country Manager for Benin, Ghana, Liberia, Sierra Leone, and Togo.  “IFC will continue to work closely with the Government of Ghana and the private sector to provide investment and advisory services to expand access to finance for small businesses and entrepreneurs, enhance agribusiness productivity, and support Ghana’s sustainable industrialization.”

“The CPF focuses on improving the investment climate and enacting regulatory reforms. Succeeding in these reforms would be critical for accelerating private sector development,” said Merli Baroudi, MIGA’s Director of Economics and Sustainability.