Gov’t anticipates $6.2bn multilateral support for economic growth
Finance Minister Ken Ofori-Atta announced that the Government is set to receive a significant influx of funds from its multilateral partners, amounting to approximately $6.2 billion over the next four years. This financial support is part of the country’s comprehensive strategy to navigate the economic challenges posed by the Covid-19 pandemic and foster sustainable growth in the post-pandemic era.
Speaking at a press briefing on Sunday, Finance Minister Ofori-Atta highlighted the government’s commitment to the implementation of Ghana’s Post-Covid-19 Programme for Economic Growth (PC-PEG), which has received backing from the International Monetary Fund (IMF) and encompasses a range of crucial reforms aimed at bolstering the economy. The PC-PEG is underpinned by clear targets and robust policy measures, demonstrating the government’s determination to steer the nation towards a path of economic resilience and prosperity.
As part of the multilateral support, the Government expects to receive a total of $2 billion from its international partners by the end of 2023, with a projected total of $6.2 billion between 2023 and 2026. This substantial funding will be provided by various multilateral institutions, including the World Bank, African Development Bank (AfDB), and the IMF. The World Bank is expected to contribute $1.6 billion, while the AfDB will provide $200 million over the designated program period. In addition to the multilateral support, the government aims to mobilize $30 million in catalytic funding in 2023 and $330 million between 2023 and 2026 from bilateral creditors.
Finance Minister Ofori-Atta emphasized the government’s determination to implement the necessary reforms outlined in the PC-PEG and underscored the importance of strong partnerships to drive economic growth. He stated, “Our commitment to these reforms is matched by our relentless pursuit of innovation and strengthened partnerships. Backed by the renewed drive for reforms, the government is working towards securing significant support from our multilateral partners.”
The funds received from multilateral partners will play a crucial role in addressing Ghana’s immediate economic challenges and driving sustainable development. The government plans to utilize the financial support to implement key policy and structural measures that will boost various sectors of the economy, including infrastructure development, social programs, and the financial sector.
Moreover, the Finance Minister highlighted the government’s collaboration with other development partners, including the World Bank and the AfDB, to establish the Ghana Financial Stability Fund. This fund aims to provide liquidity and solvency support to the country’s financial sector, ensuring its resilience in the face of challenges arising from the Debt Exchange Programme (DDEP), which has impacted the sector.
Ghana’s pursuit of multilateral support and its proactive engagement with development partners reflect the government’s commitment to driving economic stability and sustainable growth. With a clear focus on implementing vital reforms and leveraging partnerships, Ghana is poised to navigate the post-Covid recovery phase successfully and position itself as a thriving economy in the years to come.
