Ghana secures US$4.5B from World Bank to accelerate private sector development

GHANA – The Board of Executive Directors of the World Bank Group (WBG) has approved a five-year US$4.5 billion Country Partnership Framework (CPF) for Ghana from 2022 to 2026.

The Framework will promote investment in human capital, job creation, economic diversification, a resilient health system, and fostering a greener and more inclusive society.

It focuses on enhancing conditions for private sector development and quality job creation, improving inclusive service delivery, and promoting resilient and sustainable development.

The CPF was prepared jointly by the World Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA) to support Ghana’s COVID-19 fight and its medium-term development agenda.

The CPF focuses on improving the investment climate and enacting regulatory reforms. Succeeding in these reforms would be critical for accelerating private sector development,” said Merli Baroudi, MIGA’s Director of Economics and Sustainability.

Ghana has achieved considerable economic and social progress in the past 30 years.

The country achieved middle-income status in 2011 because of strong, sustained economic growth, averaging over 5 percent since the early 1990s.

This was supported by a stable democracy and driven largely by gold and cocoa exports and the development of substantial oil and gas reserves.

Ghana also achieved the first Millennium Development Goal (MDG) of halving poverty from 52.7 percent (1993) to 23.4 percent (2016).

The pace of poverty reduction has slowed in recent years, and inequalities in some areas continue, particularly in some northern areas of the country.

This has further been compounded by the Covid-19 pandemic. According to the World Bank, 770,000 workers had their wages reduced and about 42,000 employees were laid off during the country’s COVID-19 partial lockdown.

The CPF will address the immediate as well as medium-term implications of the COVID-19 crisis in line with the Ghana Coronavirus Alleviation and Revitalization of Enterprises Support program.

The CPF is designed around three mutually reinforcing focus areas, namely: Enhancing Conditions for Private Sector Development and Quality Job Creation, Improving Inclusive Service Delivery and Promoting Resilient and Sustainable Development.

The framework will move towards larger and more cohesive and transformational interventions, potentially across multiple sectors, which align closely to strong government programs.

It is also designed to be flexible, especially during its early years of implementation, with an early review of progress to accommodate needed changes for a post-COVID-19 recovery.

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