Ghana’s Parliament has approved a $360 million financing agreement with the World Bank’s International Development Association (IDA), intended to support the country’s economic recovery and macroeconomic stability. The vote, which followed a recommendation from the Finance Committee, came despite strong objections from Minority members of the House.
The facility falls under the Second Resilient Recovery Development Policy Financing programme and is part of broader international backing for Ghana’s post-crisis fiscal reforms. It is aimed at bolstering the government’s efforts to improve livelihoods, rein in inflation, strengthen public sector performance and consolidate progress made under the International Monetary Fund’s Extended Credit Facility arrangement.
Thomas Nyarko Ampem, Deputy Finance Minister, presented the agreement to Parliament on Tuesday. He said the funding would serve as a critical intervention for the government’s economic turnaround strategy, especially in light of ongoing fiscal consolidation efforts and the need to restore investor confidence.
But the approval process was marked by partisan friction. Minority lawmakers argued that the government was mischaracterizing the facility as policy support when, in their view, it amounted to a new loan adding to the country’s debt burden. Kojo Oppong Nkrumah, the Ranking Member on the Economy and Development Committee, accused the government of using “semantic gymnastics” to avoid calling it what it is.
The Majority side countered that the financing is essential to sustain the gains made under the IMF programme and to ensure continuity in critical reforms. They described the World Bank support as a necessary complement to Ghana’s fiscal and structural recovery measures following years of economic turbulence.
The facility is part of ongoing multilateral engagement to help Ghana emerge from its debt crisis and economic slowdown. The country is currently under a $3 billion IMF programme and is seeking continued support from global financial institutions to stabilize its economy, restructure its debt, and restore growth.
