Parliament Greenlights $360M World Bank Deal to Fuel Ghana’s Economic Recovery

Ghana’s Parliament has approved a $360 million financing package from the International Development Association (IDA) of the World Bank Group to reinforce the country’s post-crisis recovery and long-term economic resilience.

The funding forms part of the Second Resilient Recovery Development Policy Financing (DPF) operation and is expected to play a key role in strengthening public finances, revitalizing the financial and energy sectors, and advancing social and climate resilience initiatives.

The agreement was reviewed and endorsed by the Parliamentary Finance Committee, which emphasized its importance to the government’s ongoing reform agenda under the Post-COVID-19 Programme for Economic Growth (PC-PEG).

■ Three-Pronged Strategy for Recovery

The facility is built on three major pillars:

● Restoring Fiscal Balance:

The funds will support efforts to boost domestic revenue, enhance budget discipline, and improve debt transparency as part of the IMF-backed stabilization programme.

● Revamping Financial and Energy Sectors:

The agreement will aid in improving risk-based oversight of financial institutions and ensuring the efficiency and solvency of the energy sector.

● Building Social and Climate Resilience:

The package also targets expanded social protection, gender equity, and climate-sensitive public investment and planning.

■ Soft Terms, Strong Support

The financing comes on highly concessional terms, featuring a 1.25% service charge, zero interest, a 5-year grace period, and 30 years for repayment. The Finance Committee noted that these terms align with Ghana’s medium-term debt strategy and pose no immediate risk to the country’s debt sustainability.

■ Broader Reform Support

This latest facility is part of a larger World Bank assistance framework, which includes earlier budgetary support under the first Resilient Recovery DPF as well as technical assistance and investment lending. It is also expected to complement reforms being implemented under Ghana’s IMF programme.

Finance Committee Chair, Hon. Isaac Adongo, urged adoption of the agreement, citing its favourable terms and its potential to help build a more robust and inclusive economy.

With Parliament’s approval secured, the Ministry of Finance is now cleared to draw down the funds and implement the policy actions laid out in the agreement.