Parliament approves $360m World Bank facility to strengthen Ghana’s economy

Parliament has approved a $360 million financing agreement between the Government of Ghana and the World Bank under the Second Resilient Recovery Development Policy Financing.

The facility is aimed at supporting the country's ongoing efforts to restore macroeconomic stability, reduce inflation, create jobs, and mitigate the impact of future economic shocks.

The agreement was laid before the House on Tuesday, 1 July, by the Deputy Minister for Finance, Thomas Nyarko Ampem.

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Following a review, the Finance Committee recommended its approval, emphasising the importance of the funds to the government’s broader economic recovery efforts.

However, the Minority Caucus, led by the Ranking Member on the Committee on Economy and Development, Kojo Oppong Nkrumah, raised concerns over the facility, arguing that it constitutes a loan agreement being presented by the government as development financing.

The Second Resilient Recovery Development Policy Operation forms part of the World Bank’s broader engagement with Ghana to enhance crisis response and long-term economic resilience.

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Its key objectives are to:

• Restore fiscal sustainability;

• Support financial sector stability and private sector development;

• Improve financial discipline in the energy sector; and

• Strengthen social and climate resilience.

The programme supports targeted reforms to promote fiscal discipline, increase domestic revenue mobilisation, and enhance financial sector stability. It also aims to stimulate private-sector-led growth and investment.

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In addition, it seeks to improve the financial sustainability of Ghana’s energy sector through efficient management and operations, while supporting policy reforms that integrate climate considerations and strengthen social resilience for sustainable development.

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