World Bank set to disburse $1bn to Ghana to help stabilise economy

• Posted on August 19, 2024August 19, 2024
• by Nana Kwesi Coomson
• Comment

The World Bank is planning to disburse US$1 billion over the next 12 months to help in stabilising Ghana’s economy, and support private businesses.

This is in addition to a $1.6 billion already disbursed for Ghana since last year to support the economy.

The World Bank has also indicated that is satisfied with measures being implemented by government to help stabilise the economy, a development that has influenced the disbursements to support projects identified in the budget and other initiatives aimed at reducing poverty.

This was disclosed by the Country Director of the World Bank, Robert O’ Brien on PM EXPRESS BUSINESS Edition with host George Wiafe on August 15, 2024.

Mr. O’Brien revealed that there is also a separate allocation of $5 billion under the World Bank Group for social intervention programmes and infrastructure projects.

Additional Support

He announced that the bank will soon meet to approve another set of funding for Ghana to finance critical projects.

Mr. O’Brien noted that the second Development Policy Operations will also be considered soon by the Group, and when finalised, could lead to another funding for Ghana.

“We have our portfolio and pipeline project financing for Ghana, in terms of support” he affirmed.

“In terms of the portfolio funding, there is an allocation of $4.4 billion of that over the past 12 months, just $1 billion dollars have been disbursed”, he stated.

The World Bank in June approved a separate $800 million to support other sectors of the economy.

Mr. O’Brien said all the funding should help Ghana deal with shortfalls because of the country’s inability to raise money from the international capital market.

Is Ghana’s Recovery sustainable?

Mr. O’Brien is of the view that to ensure that the economic recovery is sustained, government must maintain fiscal discipline on election related spending.

“Government must also work hard to grow the economy and create the required jobs for the population”, he advised.

He pointed out that doing this may go a long way to ensure that the recovery is sustained.

He said the World Bank will give Ghana the necessary technical support to ensure that the reforms being implemented are sustained.

-Joy News