The World Bank has approved US$300 million Development Policy Operation for Ghana.

The money, first in a series of three, is to support the country’s economic recovery and resilience and inclusive growth, the Bank’s statement issued to the Ghana News Agency noted.

The statement indicated that the money was provided under the Bank’s First Resilient Recovery Development Policy Financing and a contribution by its International Development Association (IDA).

The Bank explained that the approval of the US$300m financing package followed Ghana’s last week agreement in principle with the Official Creditors’ Committee under the G20 Common Framework on the key parameters of the country’s proposed debt restructuring.

“The agreement, which is consistent with the Joint World Bank-International Monetary Fund Debt Sustainability Framework, represents a critical milestone toward restoring debt sustainability,” the statement said.

“Restoring fiscal and debt sustainability, bolstering growth prospects, curbing inflation, and protecting the most vulnerable – measures supported by this financing – are urgent priorities for Ghana,” said, Mr Ousmane Diagana, World Bank Vice President for Western and Central Africa.

He also said that such efforts were essential steps to allow the country to attract more foreign investment, revitalise its domestic private sector, build resilience against climate change, and improve the quality of life of its people.

Mr Ken Ofori-Atta, Finance Minister, said the US$300m would play a vital role in easing Ghana’s fiscal constraints, sustain the momentum of economic recovery while protecting the poor and vulnerable.

“The Government of Ghana remains committed to restoring macroeconomic stability and to the implementation of lasting reforms to set the economy on a path of strong long-term sustainable growth and transformation,” he noted.

The Resilient Recovery Development Policy Operation is the first in a series of three operations of $300 million each and part of a broad World Bank engagement for crisis response and resilience in Ghana.

Its objectives are to restore fiscal sustainability, support financial sector stability and private sector development, improve energy sector financial discipline, and strengthen social and climate resilience.

Specific reforms supported by this financing series include strengthening domestic revenue mobilisation, controlling expenditures, safeguarding financial sector stability, and removing barriers to private investment.

The Resilient Recovery Development Policy Operation also helps in setting the energy sector on a sound financial and operational footing, strengthen country’s social protection system, and mainstream climate adaptation and mitigation across policies.

Mrs Sivine Jensen, German Ambassador to Ghana, has encouraged the global business and investing community to consider Ghana as a choice for mutual benefit.

She said Ghana’s demography and proximity to Europe amid current global economic and political development, made it “an attractive option” for doing business and investment. 

“Due to the political situation in Europe and the rising challenges in the relations with China, companies are looking for alternative markets to invest in and trade,” she noted and said Ghana was a good choice.

She expressed confidence that “with the right reforms in the business landscape, Ghana can achieve its goals of prosperity and growth for all”.

The Ambassador encouraged government to work on making the implementation of trade and investment laws attractive, particularly with tax collection.

With the coming of the second tranche US$600 million from the International Monetary Fund (IMF), she urged government to quickly resume all stalled infrastructure, including road networks, to facilitate doing business in the country.

Mr Ken Ofori-Atta, Finance Minister, described the over 60-years relations between Ghana and Germany as “unique,” noting that as of 2023, 3.1 per cent of Ghana’s export to Europe went to Germany.

That, he said made Germany the eighth largest European export market for Ghana, with the Ghana Investment Promotion Authority (GIPC) also raking it eighth among the top 10 sources of investment for Ghana.

“Amidst all the global economic uncertainty, Ghana has emerged as a new ray of hope for the African continent. Consequently, it’s become crucial to maintain this positive momentum,” Mr Ofori-Atta said.

“The need for deeper cooperation between German and Ghanaian businesses is more critical than ever… I believe that such collaboration will be the key to driving sustainable and inclusive growth,” he noted.

The Finance Minister explained that it was against that backdrop, that the discussions with the German business community was held to ensure that German companies were supported enough to champion Ghana’s economic recovery.

“I envision a future where German technology and expertise merged with Ghanaian innovation and local knowledge to create solutions that connect our economies, cultures, and peoples,” he said.

Mr Yofi Grant, Chief Executive Officer (CEO), (GIPC), said Ghana, being latitude zero and longitude zero made the country the centre of the world, therefore, an entry point for business and trade in Africa, and the rest of the globe.

He reiterated that the enormous resources of the country [including gold, cocoa, diamond] offered opportunities for investment, particularly in value addition, through mutual partnerships. 

He stated that the implementation of reforms in the country’s investment laws would create an enabling environment for businesses to thrive and make investors gain good returns on investments into Ghana. 

The discussions between the government and German business communities, he said, was critical in assessing and resolving specific challenges related to German businesses and investors.

He said Africa would soon grow by one-third of the world’s population, “so you cannot do business and not have presence in Africa”, and urged businesses not to lose sight of Ghana – the headquarters for the Africa Continental Free Trade Area (AfCFTA).