World Bank commits $150m in additional financing to bolster Ghana’s social safety nets
In a significant development aimed at bolstering Ghana’s social safety net infrastructure, the International Development Association (IDA), a subsidiary of the World Bank, has approved an additional financing of US$150 million for the Ghana Productive Safety Net Project 2 (GPSNP 2). This injection of funds seeks to expand and enhance existing social protection programs, providing access to income-generating opportunities for the impoverished segments of the population.
The financing package, unveiled in a statement released in Washington, underscores the World Bank’s commitment to supporting Ghana during these challenging times, marked by fiscal constraints and macroeconomic headwinds. It will enable the government to fulfill its commitments to safeguard and augment social spending, ensuring the protection of the poor and vulnerable.
At the forefront of the beneficiary programs is the Ghana School Feeding Programme (GSFP), the largest social assistance initiative in the country. Operating across all 261 municipal, metropolitan, and district assemblies, this program serves a staggering 3.6 million children enrolled in public kindergartens and primary schools. By extending support to the GSFP, the additional funding will ensure uninterrupted access to nutritious meals for these young learners.
Pierre Laporte, the World Bank Country Director for Ghana, Liberia, and Sierra Leone, expressed his satisfaction with the project’s expansion and emphasized its importance during a period of macroeconomic challenges. He highlighted how the financing aligns with Ghana’s overarching development vision outlined in the Coordinated Programme of Economic and Social Development Policies (2017–2024), as well as the government’s ambitions for the social protection sector, which includes empowering the poor with productive and gainful employment opportunities.
The GPSNP 2 builds upon the success of its predecessor and prior World Bank-funded initiatives dating back to 2010. By providing comprehensive support to the Ghanaian government, these projects have played a vital role in strengthening the country’s social protection system and increasing transparency and efficiency to maximize the overall impact of the programs.
In addition to its financial backing, the GPSNP 2 will offer technical assistance to identify sustainable sources of social protection financing. This strategic approach aims to ensure the long-term viability and effectiveness of the initiatives, creating a solid foundation for Ghana’s social safety net system.
One of the key goals of the additional financing is to address the delayed release of payments for government-funded social protection programs. The World Bank’s support will help rectify this issue, ensuring that critical social assistance programs, such as the Livelihood Empowerment Against Poverty (LEAP), receive regular and timely disbursements. The LEAP program, specifically, will witness increased funding to meet the government’s budget commitments and counteract the adverse effects of inflation on the transfer value received by its 350,000 beneficiaries.
Moreover, the expanded GPSNP 2 project aims to extend its reach to more individuals in need. By scaling up the Productive Inclusion Intervention, an initiative designed to provide sustainable livelihoods, an additional 35,000 beneficiaries will gain access to income-generating opportunities, elevating the total number to 60,000. Furthermore, the Labor-Intensive Public Works short-term employment program will be expanded to accommodate an extra 30,000 beneficiaries, bringing the total to 90,000. This expansion will provide crucial employment prospects for thousands of Ghanaians, promoting economic growth and poverty reduction.
Ghana’s social safety net programs supported by the GPSNP 2 play a pivotal role in shielding the poor, enhancing food security, and fostering increased productivity and human capital development. The World Bank’s additional financing not only contributes to Ghana’s fiscal recovery efforts but also underpins the government’s commitment to uplifting the vulnerable segments of society.
As the nation strives to navigate its fiscal challenges, this substantial funding injection serves as a beacon of hope, ensuring that critical social assistance programs remain intact and continue to positively impact the lives of millions of Ghanaians. By fortifying Ghana’s social protection infrastructure, the World Bank and the IDA are empowering the country to build a brighter and more inclusive future for its citizens, where no one is left behind.
