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World Bank supports Ghana with $1.2 billion

The World Bank is to support Ghana with about 1.2 billion dollar credit to help finance some critical developmental project.

The facility forms part of the World Bank’s 75 billion dollars International Development Association support to some selected countries globally. Country Director of the World Bank, Henry Kerali , announced the support at a media briefing in Accra by the Bank’s Chief Economist for the Africa region Albert Zeufack.

The credit facility is expected to be disbursed in the next three years at 2.5 percent and payable in the next twenty five years.

“This is the best rate Ghana could get considering its status as a middle income country,” he said.

The credit will be disbursed in three tranches of four hundred million dollars annually if approved.  This is the first credit facility the bank is extending to Ghana following a change in government in January.

Chief Economist of the Africa Region Albert Zeufack on his part described 2016 as the worst year in two decades as the continent grew by 1.6 percent. The World Bank has however predicted a growth of about 2.5 to 3 per cent in 2017 for the continent.

In a related development, the bank’s Vice President, Makhtar Diop will arrive in Ghana on Tuesday, April 4, 2017 as part of a two-day mission, after which he will also visit Benin and Togo.

In Ghana, Makhtar Diop will pay a courtesy call on His Excellency President Nana Addo Dankwa Akufo-Addo to discuss development challenges and opportunities in Education, Energy, Agriculture, and other sectors of the Economy.

Mr Diop will also meet His Excellency Vice President Dr. Mahamudu Bawumia, other officials and development partners to deliberate on macroeconomic issues and explore ways to work together to support Ghana’s development agenda.

This is Mr. Diop’s third visit to Ghana, since becoming Vice President in 2012. The World Bank has been in Ghana since 1957. The current Country Partnership Strategy for Fiscal Years (FY) 2013-2018 was endorsed by the Board in September 2013 and extended to FY 2018 in October 2016.

The active IDA portfolio in Ghana comprises of 20 projects, cutting across all major sectors including energy, transport, education, water and sanitation, among others. All World Bank commitments stand at $1,731 million with about 66% disbursed. Ghana also participates in 4 Regional projects with national commitment amounting to US$383 million.

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