Finance Ministry warns of $3.8 billion loss to Ghana over anti-LGBTQ Bill assent by Prez Akufo-Addo
The Ministry of Finance has urged the President, Nana Akufo-Addo, to exercise restraint in assenting to the recently passed anti-LGBTQ bill by Parliament, citing potentially dire financial repercussions for the nation.
In a press release issued on Monday, March 4, 2024, the Finance Ministry cautioned that endorsing the bill could result in significant financial setbacks for Ghana, with an estimated loss of $3.8 billion over the next five to six years.
According to the Finance Ministry’s statement, the impact of the bill on Ghana’s financial landscape would be profound. Notably, the nation stands to lose substantial World Bank financing, including a projected loss of $600 million in budget support for 2024 alone, alongside $250 million earmarked for the Financial Stability Fund.
Such losses would undoubtedly strain Ghana’s foreign exchange reserves and jeopardize exchange rate stability, further exacerbating economic challenges.
The implications of the bill extend beyond immediate financial losses. Negotiations for crucial World Bank-funded programs, including the First and Second Ghana Resilient Recovery Development Policy Operations, as well as ongoing projects and future pipeline initiatives, could face suspension, severely hampering Ghana’s development trajectory.
Furthermore, the Finance Ministry highlights the potential ramifications on Ghana’s debt restructuring program, emphasizing the critical link between the success of the IMF program and negotiations with the Official Creditor Committee and Eurobond holders. Any disruption to the IMF program could have lasting consequences for Ghana’s long-term debt sustainability.
While the African Development Bank has indicated minimal adverse impact from the bill, concerns loom over potential reactions from influential partners such as Germany and the wider European Community. The Ministry underscores the need for strategic relationship management to mitigate negative repercussions.
In light of these sobering realities, the Finance Ministry presents a series of recommendations aimed at navigating the complex economic and diplomatic landscape. These include structured engagement with conservative forces, effective dialogue with conservative countries, and a deferral of assent to the bill pending legal rulings by key stakeholders.
