The Ministry of Finance has sealed a US$102.59million African Development Bank (AfDB) budget support grant as part of government’s Fiscal Consolidation and Economic Recovery Programme (FISCERP).
The grant, which falls under the AfDB’s ADF-16 funding cycle, aims to fortify Ghana’s economic recovery through enhanced public finance, heightened productivity and the generation of employment opportunities.
Deputy finance minister, Abena Osei-Asare, speaking at the official grant-signing ceremony in Accra, emphasised that beyond its monetary value the grant symbolises a vote of confidence in Ghana; and that the partnership with AfDB is built on trust, shared objectives and a steadfast belief in the country’s prospects.
Ms. Osei-Asare said: “The agreement between government and AfDB for implementing the Budget Support Programme represents a commitment to addressing economic challenges, fostering sustainable growth, enhancing fiscal consolidation and promoting inclusivity within society.
“With these trends, a sense of a ‘new beginning’ has taken hold – evidenced by the strong support we received from our development partners for the important measures taken by government to turn around the economy,” she added.
Reflecting on the challenges faced globally, including the impact of COVID-19 pandemic and geopolitical events, Ms. Osei-Asare acknowledged Ghana’s resilience and determination. She underscored adaptability and innovation, coupled with the AfDB’s support, positioning Ghana to capitalise on opportunities.
Fasika Eyerusalem, Country Manager-African Development Bank Group, shed light on the grant’s significance by stating: “We are here to sign the US$102.59million grant for the Fiscal Consolidation and Economic Recovery Programme, a budget support programme”.
The Country Manager stressed the grant’s crucial role in enhancing fiscal consolidation measures and contributing to increased resource mobilisation for government investments. Furthermore, the programme aims to fortify the financial sector by attracting private investment – particularly in critical sectors like agriculture.
Ms. Eyerusalem emphasised the impacts of global developments such as the COVID-19 pandemic, financial tightening and geopolitical events like the Russia-Ukraine conflict on Ghana’s economy,
She therefore described the ceremony as a pivotal milestone in government’s quest to restore economic stability.
The AfDB’s active country portfolio in Ghana comprises 20 operations totalling US$726million across various sectors, with a notable focus on transport and agriculture. This portfolio aligns with the bank’s High 5 priority dimensions in Ghana: Light Up and Power Ghana; Feed Ghana; Industrialise Ghana; Integrate Ghana; and improve the quality of life for Ghanaians.