$300m World Bank budgetary support hits BoG accounts

According to a report by Citi News, the BoG’s account was officially credited on Wednesday, March 27, 2024.

The release today is the first of three $300 million World Bank operations for disaster response and resilience in Ghana under the Resilient Recovery Development Policy Operation.

This extra foreign influx will increase the Bank of Ghana’s buffers, assisting in the economy’s recovery and slowing the Cedi’s devaluation.

The fund is also expected to restore fiscal sustainability, promote financial sector stability and private sector development, improve energy sector financial discipline, and strengthen social and environmental resilience.

“The government will adhere to the World Bank-supported Development Policy Operations, despite it being an election year,” said the Finance Minister, Dr. Mohammed Amin Adam.

This financing series supports specific reforms such as strengthening domestic revenue mobilisation, controlling expenditures, ensuring financial sector stability, and removing barriers to private investment.

The funds will also tackle the energy sector on a more stable financial and operational footing, strengthen the country’s social protection system, and mainstream climate adaptation and mitigation across policies.

Ghana anticipates receiving approximately $1.2 billion from its development partners, which include the International Monetary Fund, the World Bank, and the African Development Bank, by the end of 2024.

Meanwhile, the country has received $1.2 billion of the $3 billion IMF extended credit facility.