There appears to be growing tension between the government and some Non-Governmental Organizations (NGOs), consultants, and development partners regarding stalled World Bank projects in the country.
It appears that a clash of priorities is emerging following the government’s insistence on fiscal prudence, which is colliding with the expectations of development partners and NGOs, as a result of the government’s decision to place several World Bank-funded projects on hold for scrutiny.
These NGOs, consultants, and other partners are connected to these stalled projects, hence affecting their major source of funding.
While civil society actors and consultants tied to initiatives in sanitation, education, poverty alleviation, and resilience lament the freeze, Finance Ministry officials argue that thorough vetting is necessary to avoid wasteful debt accumulation amid Ghana’s delicate IMF programme.
Projects on Hold
Some flagship projects affected include the Greater Accra Resilient and Integrated Development (GARID), Ghana Accountability for Learning Outcomes (GAMA), Ghana Jobs and Skills Project (GJSP), and others.
Staff and consultants attached to these programmes funded by the World Bank’s concessionary loans are murmuring over the halt, suggesting that their financing and livelihoods have been disrupted.
Amid the government’s stance and the frustration, it is emerging that some staff of the World Bank are shifting their attention to Liberia and Sierra Leone because Ghana is seen as stalling.
The Case for Fiscal Prudence
Despite the disgruntled NGOs and consultants, the government is not backing down on its posture due to its commitment to fiscal prudence and keeping the debt levels under control.
Even CEO of IMANI Africa, Franklin Cudjoe, has defended the government’s stance. He explained that President Mahama and the current Finance Minister are determined not to “splurge” on concessionary loans simply because they are cheap.
He insists that “Fiscal prudence is the watchword,” adding that in the past, governments rushed into multiple loan agreements with catchy project acronyms but failed to deliver tangible impact.
Those missteps, he argued, saddled the country with ballooning debt while citizens saw little benefit.
The government’s defenders say the scrutiny is crucial at a time when Ghana must meet strict IMF debt sustainability targets. Every dollar borrowed, they argue, must prove its worth in advancing industrialisation, jobs, and real economic transformation.
The Pain for NGOs and Consultants
But for NGOs, development partners, and consultants whose operations are tied to these loans, the freeze comes at a heavy cost. Projects targeting poverty reduction, education reform, and climate resilience are either slowed or crippled.
Moreover, they argue that some beneficiary communities are expecting new sanitation infrastructure or livelihoods training, but are now left in limbo.
Beyond the human impact, many consultants privately admit that their professional and financial stability depends on these projects moving forward.
Do the Projects Deliver?
But some analysts are critical of these kinds of projects. Some have questioned the value of these projects. Some argue that while they carry noble intentions, the proliferation of acronyms, SOCO, GARID, GAMA, GETP, KUMAP, GSCP, reflects more donor-driven agendas than Ghanaian priorities.
To the critics, too often, these projects create temporary jobs for consultants but little systemic change.
Others, however, contend that interventions in sanitation, education, and resilience remain essential lifelines for vulnerable communities and should not be sacrificed on the altar of austerity.
Lessons from the Past
The standoff recalls tensions during Seth Terkper’s tenure as Finance Minister under the John Mahama administration, when a cautious approach to borrowing was perceived by some donors as a reluctance to engage.
That period strained Ghana’s relationship with the World Bank and similar institutions. It is feared that the resurfacing of a similar development could repeat the old history.
The IMF Conditions & Balancing Act
It is obvious that the government faces a delicate balancing act. It is faced with pursuing fiscal discipline to restore macroeconomic stability while maintaining credibility with development partners and ensuring that vital projects reach the people.
As the IMF keeps debt sustainability targets in sharp focus, Ghana’s choices will determine whether it can both steady its fiscal management and sustain the goodwill of development partners.
But the question still remains: Is Ghana wisely protecting its future or sacrificing urgent development needs today?
