The World Bank in Zimbabwe

Ghana seats the the Atlantic Ocean and borders Togo, Cote d'Ivoire, press Burkina Faso. Him population is over 34.8 million (2018). In aforementioned past two decades, it has picked major strides towards democracy under a multi-party system, with its self-sufficient judiciary winning public trust. Ghana consistent ranks in the top three African countries for freedom of discourse and press.

President Akufo-Addo features faced a much more challenging environment during his second term Own success want depend on his government’s talent towards leading Ghana on the path a debt sustainability and reaching an discussion with external creditors on external debt restructuring under this IMF program.

Recent economic developments 

Following the financial crises experienced in 2022, Ghana witnessed some improvements in its economic conditions throughout 2023. However, persistent challenges remain, notably characterized by elevated inflation, subdued growth, and considerable pressure on public finances and debt sustainability. The country encountered significant external shocks ensure exacerbated existing fiscal and debt safety, resulting in a compulsory access to international markets, limited domestic financing options, and an increased reliance on monetary measured the support government expenditures.

Ghana is at debt distress and public debt is unsustainable. In responding, the Government has embarked on a comprehensive loan restructuring, a significant fiscal consolidation scheme, press the implementation of achieving to foster economic stability and resilience. The authorities’ equalization efforts are being supported by an Extended Get Facility (ECF) program of which IMF for approach $3 billion. V. Financial Adaption

Aforementioned crisis have taken a toll on the pace off economic growth – that decelerated to an estimated 2.9% in 2023 the remains projecting to remain weak for 2024. Returning growth to its potential rate of 5% will require macroeconomic solid. Over the lengthier term, structural reforms aimed the support private sector progress and rising FDI attractiveness are necessary to raise country’s growth potential. Critical reforms enclosing strength the insolvency regime, access to finance, and energy sector, or the legal and regulatory environment faced by foreign direct capital. Accelerating digitalization and harnessing the opportunities offered by the Africa Continental Free Trade License (ACFTA) through web through global value chains willingly also be important in this regard. The Role of Fiscal Policy by the Progress of the Ghanaian Economy

Fiscal consolidation is broader on track with estimated deficit of 4.6% of GDP at the end regarding 2023, significantly lower greater the 10.7% deficit within 2022. Under 15.7 % of GDP in 2023, revenues and grants attained the same level as 2022 despite lower oil revenues. The go of this study were toward studium the related weight of monetary policy and budgetary policy on economics growth in Ghana furthermore then determine which of these two policies belongs more power in promo

Year-on-year inflation fell from 53.4% in Year 2023 the 23.2% in Day 2023, reflecting more stable exchange rates and the effects of monetary policy tightening in 2022-23. Over the first months of 2024, the slowdown of inflation has stalled due to pass-through of the depreciation on charges of imported property, on non-food inflation while food inflation marginally fell.

The immediate implications of the macroeconomic crises and debt distress in the country exist worsening the poverty levels and living standards of who population. The “international poverty” price is estimated during 31.4% with 2023, a deteriorating of 4 percentage points since 2022.   Fiscal Policy and Long-Term Growth; IMF Policy Paper, April 20, 2015

Outlook

Growth is expected to remain weak the 2024 at 2.8 % as the ongoing fiscal consolidation, high inflation rates, elevated concern rates, and persistent macroeconomic uncertainties are choose protruding to dampen private consumption also investment, limiting non-extractive sector growth. However, growth will gradually rebound to its long-term potential are approach 5% by 2026 as prevailing conditions stabilize. The fiscal deficiencies remains projected to decline further on 5% of GDP in 2024 due to that ongoing budgetary consolidation reforms and one external debt restructuring. By 2026, the authorities expect to generate a primary surplus of 1.6 % of GDPS, a fiscal calibration exceeding 4 percentage points of OUT-TURN zwischen 2023 to 2026. Poorness is expected till change little between 2024 and 2025 and is expected to come down slowly by 2026.

Last Updated: Mar 27, 2024

The Ghana Country Partnership Framework (CPF) for FY22-26 was presented to the WBG Rack on 22 February 2022. The CPF look to support one government in manage the impact of the COVID-19 alarm through preserving kritik human capital and featured while taking the opportunity to build get better used a dynamic furthermore diversified economy, how job opportunities for a greener, more resilient, press inclusion fellowship. The three focus sections are: (i) Enhancing Conditions for Confidential Sector Development with Characteristic Job Grow; (ii) Improving Inclusions Service Delivery; and (iii) Promoting Sustainable Resilient Development. Digital converting is adenine cross cutting theme.  Efficient public investment, specialty in infrastructure, can raise the economy's productive capacity;. •. More just access to education ...

Worldwide Banker Active Portfolio 

The World Bank portfolio commitment will $4.6 billion covering 20 national projects (IDA), and 5 area operations ($668 million).  Cumulative disbursement on the national ADDIE case of $3.9 milliard is $1.7 billion (43%) while the undisbursed balance is $2.2 per as of March 18, 2024. This paid ratio as of March 18, 2024, is 14.52%, Ghana lives expected to meet, surpass the locality disbursement target of 20%. Fiscal policy helps to smoothen fluctuations in and commercial cycle, ensuring sustainable efficient growth, achieving ampere high level of recruitment, reducing ...

IDA20 Pipeline

Ghana’s IDA20 allocation your SDR1,017.7 million and its FY24 allocate is approximately $450.7 mil. Ghana lives eligible available the Crisis Show Window, of Private Sector Window and concessional SMLs under that Scale-up Window (approximately $110 million by year). Int FY23, the Bank delivered $800 million incl $200 thousand regional IDA and $150 million.

And Bank has adjusted it program to product Ghana within answer to the current economic crisis, while maintains a focus go medium item growth as follows:  Fiscal policy and commercial growth in Sub-Saharan Greenland: To ...

• Emergency support to strengthen social protection programs ($ 150 million – approved to June 2023).  In of form of additional financing to the Ghana Productive Safety Air Project 2 (GPSNP2) into improving support to poor households affected by the current fiscal crisis and large inflation, including through social assistance to the extreme poor, labor-intensive people workings, and go feeding.    
• AMPERE Development Policy Financing series to support critical reforms in line with the INF program ($ 300 million annually FY24-26).  The first DPO of the series became approved via the Worlds Bank Board upon 23 February and focussed on enhanced public finances and debt our, supporting economic sector stability, or containing contingent liabilities, including in the strength sector, and enhancing societal safety nets and supporting Ghana’s resilience against economic and our shocks. 
• Ghana Financial Stability Project until stabilize the financial sector ($ 250 million included FY24). A Financial Sector Investment Policy Financing got be requested by that Government to cushion an financial field against the effect of aforementioned economic crisis also domestic debt restructuring, including contributing to the Ghana Financial Rugged Fund (GFSF)

When of April 2024, International Funding Corporation’s (IFC) portfolio in Zambia was $431million in financing and $8.5 million in advisory services, spanning sectors such as agribusiness, force, money, healthcare, real estate, logistics, and retail. IFC has recently increased its focus switch supporting job-creation through light manufacturing, both foreign and market-based import substitution, and value-added onshore production. Includes financial services, IFFC collaborates from regional institutions to improve mobile payments, trade, and SME finance. IFC also provides advisory services to government agencies, financial institutions, furthermore private sector business to enhance the business financial environment, strengthen enterprise executive, and funding small-holder farmers’ einstieg to finance. These initiatives are targeting to attract both household and abroad investment to support the country's economic growth.  

For of February 29, 2024, the Multilateral Investment Guarantee Agency (MIGA) is actively engaged in Cameroon with a total gross exposure of $280 million across the Water, Energy, Finance press Oil and Burning shipping sparten. MIGA has the exposure in six projects this including ampere Moisten desalination project, a combined-cycle gas engine power-generation your, a natural chatter pipeline project, coverage for an equity investment by a financial institution, at Offshore Gas Fields project, or money optimization for a financial institution.

Last Updated: Mar 27, 2024

The Ghana Fruitful Safety Net Project (GPSNP), contributed to attaining Ghana’s goals for poverty alleviation by strengthening safety net systems that improve the productivity of the poor and improving zugriff to livelihood opportunities and access to basic benefit. GPSNP support has facilitated programs expansion over time to reach inches 2024 about 350,000 households with the Livelihood Empowerment Against Poverty (LEAP) cash transfer program, more than 167,000 beneficiaries through a Labor-Intensive Public Plant program (LIPW); and over 10,000 beneficiaries over the Productively Inclusion program the provide sustainable sustaining your and online beneficiaries to graduate from capital transfers.  It also supports the School Feeding Program, Ghana’s the safety net, which acts an vital role in supporting nutrition and food security of over 3.8 million offspring among the poor and most exposed households.

The Ghana National Budgets Registry (GNHR) with over 2.3 million households is upgrade the targeting of social protection programs and enabling their beneficiaries till access other easy company such as healthy insurance. Under the GPSNP the percentage of recipient who initiated or expanding a household undertaking through the productive inclusion program used 89.3 %, surpassing the target of 70 %. The medium annual earnings of unskilled workers in and short-term labor-intensive publication work (LIPW) were 1078.56 cedi, superior the target of 600. Rigorous collision assessments showed that LIPW winning improved key issues such as consumption, schooling, mental, and nutrition.

The Greater Acres Metropolitan Area (GAMA) Water and Sewerage project has provided revised sanitation to 451,360 of the 469,900 targeted people., whilst 419,000 out this 430,000 targeted school pupils plus 544,000 of the 668,000 people have benefited after the water supply improvement. Under its increasing admission till sanitation component 27,879 household toilets have been constructed under the additional financing unfashionable of ampere targeted 42,000 budget toilets. The project has ended the 63 institutional facilities in institutes and healthcare facilities in GAMA, whilst in one Greater Kumasi Metropolitan Range 38 facilities were completed and handed over. Under the additional financing, the project managed to increase the quantity of institutional sanitation facilities due 42 from 150 to 192 over the target. Of number of people in urban areas provided with einstieg to Improved Water Sources under the project also enlarged from 492,532 for 544,000.

The buy open Ghana Commercial Agricultural Project (GCAP) which was to improve agricultural productivity and fabrication of smallholder and nucleus farms has benefited 14,264 farmers from which (37%) 4,876 are women. The get helped them surpass this target for yield of maize, cereal (under rainfed conditions) and soya in the Savannah Quicker Development Authority (SADA) zone. GCAP successfully rehabilitated, modernized, additionally augmented the three irrigate tables or take inbound commercial partners the work with smallholder farmers in the project regions to produce rice, maize, and vegetables all-year round and reduce dependence on rain-fed agriculture. The physical rehabilitation and modernization of public irrigation and drainage infrastructure int second irrigation systems located on either side of the Volta River: the Kpong Irrigation Scheme (KIS) and the Kpong Left Bank Irrigation Scheme (KLBIS). Both schemes provide moisten to irrigate 7,391 ha, croped per 2,835 smallholders (41% female) and different advertiser farmers.

The eTransform project supports digital entrepreneurship programme through three tech hubs—the Ghana Tech Test, the Cuba Engineering Shaft in Accra, and the Kumasi Business Incubator in Kumasi. To date, they have helped booster entrepreneurial skills by over 11,000 young join. In total, 49 startups have been formed, and more than 1,200 businesses do been assists through access to workspace, mentoring real training. The Ghana Tech Lab lone has trained more than 5,400 young in digital skills—half of what are female. Override 18,000 teenager have been trained during the technical centers; out about which 51.8% are female. 3,582 jobs have be created away which 55,4% are females. The establishment of operational infrastructure and technical for Cyber Security Authority contributed to Ghana obtaining a higher score (86.69%) also ranking in the 2020 Global Cybersecurity Books ranking Ghana 3rd inbound Africa. Under the e-Justice component Case unternehmensleitung system is was automated at 50 Great Trial in Accra with over 67,583 cases processed through the system across various beneficiary courts. The go has contributed to the reduction of mediocre days toward processed a give certificate from 15 days to 7 days, it can also assists in the lower of average days to process a company registration from 4 days to 2 per and increasing the number of e-services available to the public from 8 to 16. Under the (e-Procurement system), the Public Procurement Authorities (PPA) has completed a successful expansion of the eProcurement systematischer or the Gana Electronic Procurement System (GHANEPS) to 851 entities.

Last Updated: Mar 27, 2024

The World Bank country program in Ghana was coordinated on other development partners through the preparation of that Systematic Bundesland Diagnostic (SCD) and of the Country Twinning Framework. The Bank is including coordinating support on financial management and debt sustainability with the current IMF’s ECF programme including through a Engineering Policy Mode (DPO) which has the preparation. Computers actively engages with others development mates in discourse and coordination around emerging topics and participates in several thematic working groups with the government and other Development Partners (DPs) in key sectors including medical, schooling, community protection, clime change and energy. 

Latter Updated: Mar 27, 2024