Ghana’s Government and World Bank Join Forces to Revamp Social Programs

The Ghanaian government, in partnership with the World Bank, has successfully concluded its efforts to rationalize various social intervention programs, including the Free Senior High School initiative.

This move comes in response to growing concerns about the rising expenditure associated with these initiatives and a desire to reduce the country’s mounting debt, thereby creating fiscal flexibility.

Several of these programs have faced scrutiny from the nation’s development partners, prompting the government to reevaluate its approach to funding and implementation.

Finance Minister Ken Ofori-Atta elaborated on this initiative during a yet-to-be-aired PM Express Business Edition scheduled for Thursday, October 19, 2023, at 9 pm. He stressed the importance of meeting the structural benchmarks required for approval by the International Monetary Fund (IMF) and described these program reviews as vital steps in that direction.

According to Ofori-Atta, the government’s goal is to ensure that the World Bank disburses approximately $500 million under the IMF program for Ghana by December 2023.

To achieve this, approximately 17 social intervention programs have been under consideration. These programs will be integrated into the 2024 budget, and detailed plans for their rationalization will be disclosed at that time.

Ofori-Atta sees the funding from the World Bank as timely, reflecting the government’s commitment to fulfilling all benchmarks and steering the economy toward a path of recovery. He emphasized the importance of demonstrating financial prudence and fiscal responsibility.

Furthermore, Ofori-Atta mentioned that the Ghana Financial Stabilization Fund is expected to receive $250 million from the World Bank, aimed at providing support to the local financial institutions. This infusion of funds will play a crucial role in the recapitalization of banks, particularly those that have been heavily impacted by the Domestic Debt Exchange Program.

In summary, this collaborative effort between the government and the World Bank aims to streamline and optimize various social intervention programs, ensuring that they align with budgetary constraints and international expectations.

The resulting funding from the World Bank will not only strengthen the economy but also assist local financial institutions in recovering from the challenges posed by the recent financial reforms.