Ghana likely to lose $3.8b in WB financing if LGBT bill is assented to
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The Ministry of Finance has revealed that Ghana is likely to lose US$3.8 billion in World Bank Financing over the next five to six years if President Nana Akufo-Addo assents to the LGBTQ+ bill passed by Parliament.
According to the Ministry, for this year (2024) Ghana will lose US$600 million Budget support and US$250 million for the Financial Stability Fund.
This will negatively impact on Ghana’s foreign exchange reserves and exchange rate stability as these inflows are expected to shore the country’s reserve position.
On the 28th of February, 2024, the Parliament of Ghana passed the Proper Human Sexual Rights and Ghanaian Family Values (“Anti-LGBTQ”) Bill. The Bill is yet to be forwarded to H. E. the President for assent seeks to among others prescribe a maximum of five years for anyone caught practising or endorsing LGBTQ+ activities.
The passage of the Bill has triggered reactions from some of Ghana’s Development Partners, International Financial Institutions, the US Embassy in Ghana and CSOs in the country.
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The development led to the Minister of Finance convening an Emergency Meeting with Chief Director and Director of the Ministry, the Governor and 1st Deputy Governor at BoG and the Commissioner-General of GRA to ascertain the immediate impact of the passage of the Bill on the implementation of the 2024 Budget.
At the end of the deliberations, the meedting recommended the following
At the Presidency level, We recommend;
a. a structured engagement with local conservative forces such as religious bodies
and faith-based organizations to communicate the economic implications of the
passage of the “Anti LGBTQ” Bill and to build a stronger coalition and a framework
for supporting key development initiative that are likely to be affected;
b. an effective engagement with conservative countries, including the Arab countries
and China. This could help trigger resources to fill in the potential financing gaps
to be created; and
c. H.E. the President may have to defer assenting to the Bill until the court rules on
the legal issues tabled by key national stakeholders (CSOs and CHRAJ).
ii. At the MOF Level,
a. The Ministry will continue to engage with the IMF on the alternative credible
sources of funding that will plug the financing gap;
b. GRA to embark on a vigorous revenue mobilisation drive focusing on
implementation of approved measures as well as compliance;
Click the link for the full statement issued by the Ministry of Finance.
