The World Bank has granted Ghana a substantial funding package of $300 million in its efforts to support the country’s economic recovery. The funding comes after Ghana recently reached an agreement with its official creditors to restructure its external debts. The World Bank emphasized the significance of this agreement in restoring the debt sustainability of Ghana. The approved financing aims to assist the implementation of government programs focused on domestic revenue mobilization, expenditure management, and financial sector stability. This funding is the first of three operations, each worth $300 million, as part of the World Bank’s extensive involvement in addressing crises and bolstering resilience in Ghana. Last week, Ghana received approximately $600 million as part of its $3 billion bailout program with the International Monetary Fund (IMF). Additionally, Ghana secured a debt restructuring deal worth $5.4 billion with its creditors, allowing the release of $1.25 billion financing from the IMF to support the country’s economy.
Key points to note:
1. Ghana faced a severe economic crisis in 2023, resulting in high inflation rates, reaching over 50% at one point. However, as of November 2023, inflation has decreased to 26.4%.
2. The Ghanaian Cedi experienced an 11% devaluation in the first half of 2023.
3. Ghana suspended payments on a significant portion of its $28.4 billion external debt in December 2022, leading to a state of default. However, the country successfully negotiated a
