The World Bank has pledged its commitment to assisting Ghana in addressing the pressing issue of youth unemployment through a newly developed Growth and Jobs Strategy. The initiative aims to create job opportunities for over 500,000 young people entering the job market annually.
This announcement followed a high-level meeting at the World Bank headquarters in Washington, D.C., where Ghana’s Minister for Finance, Dr. Cassiel Ato Forson met with Anna Bjerde, the World Bank’s Managing Director of Operations. Their discussions centred on designing and implementing a comprehensive strategy focused on job creation, skills development, and inclusive economic growth.
“This initiative reflects our shared priority of unlocking opportunities for young people,” Bjerde noted. “We are proud to work with Ghana on a strategy that will create jobs and build a stronger, more resilient economy.”
Dr. Forson welcomed the partnership, emphasizing the importance of bold interventions. “This collaboration is a major step forward in our efforts to provide decent and sustainable jobs for our youth, driving economic growth and reducing unemployment.”
Broader Economic Concerns for Sub-Saharan Africa
While Ghana addresses youth unemployment, broader economic challenges persist across Sub-Saharan Africa. Speaking during the 2025 IMF/World Bank Spring Meetings, Dr. Johnson Asiama, Governor of the Bank of Ghana, highlighted the crippling debt burdens facing many African nations. With approximately half of Sub-Saharan African countries at high risk of, or already experiencing, debt distress, urgent action is needed.
Dr. Asiama explained that debt service obligations severely limit fiscal space, hindering essential social and development spending, particularly in health and education. “The per capita public expenditure on interest payments in Africa now surpasses spending on critical sectors like health and education,” he said, pointing to declining overseas development assistance as a contributing factor.
The governor also outlined the cumulative impact of successive shocks, including the COVID-19 pandemic, geopolitical tensions, and climate-related disasters, which have exacerbated economic vulnerabilities.
Calls for International Support
In response to these challenges, Dr. Asiama urged development partners, including the IMF, to strengthen their support mechanisms for African countries. Key recommendations included:
1. Enhanced IMF Flexibility: Strengthening IMF support through the Poverty Reduction and Growth Trust and Catastrophe Containment and Relief Trust to ease liquidity pressures and alleviate debt burdens.
2. Proactive Debt Sustainability: Refining the debt sustainability framework to prevent unsustainable debt accumulation while maintaining access to development assistance.
3. Comprehensive Debt Relief: Leading efforts in debt restructuring, streamlining processes, and fostering transparency to encourage early private sector engagement in relief initiatives.
4. Innovative Financing Solutions: Promoting debt-for-climate swaps, blended financing models, and concessional financing to tackle both debt vulnerabilities and climate risks.
5. Policy Coordination: Encouraging international financial institutions (IFIs) to align financial and technical support with regional priorities and challenges.
“We call for enhanced collaborative efforts to address debt vulnerabilities and climate-related risks,” Dr. Asiama concluded, urging global stakeholders to champion equitable solutions for Africa’s economic resilience.
Moving Forward
The collaboration between Ghana and the World Bank reflects a shared commitment to fostering economic opportunities for youth, while Dr. Asiama’s recommendations underscore the need for a unified global response to Africa’s debt and development challenges. These dual efforts aim to ensure sustainable growth and improve living standards across the continent.
Story by: Mercy Addai Turkson #ahotoronline.com
