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Ministry of Finance, AfDB sign US$102.59 Million Budget Support Grant

Ministry of Finance, AfDB sign US$102.59 Million Budget Support Grant

Accra, Thursday 9th November 2023 - The Ministry of Finance has signed a grant of US$ 102.59 million with the African Development Bank (AfDB) for Fiscal Consolidation and Economic Recovery Program (FISCERP) in Accra.

The grant, for general budget support falls under the AfDB’S ADF-16 funding cycle with the aim of bolstering Ghana’s efforts towards economic recovery through enhancing fiscal consolidation, public financing and sustainable growth.

Hon. Abena Osei-Asare, a Deputy Minister for Finance who signed on behalf of Hon. Ken Ofori-Atta noted the gains Ghana had made on the path to economic recovery, and thanked Ghana’s development partners for providing the much-needed support for government to turn around the country’s fortunes.

“By the grace of the Almighty God, the work of economic recovery is underway: GDP growth has picked up (3.2% H1-23), consumer price inflation is on the decline (38.1% in September), exchange rate depreciation has dramatically slowed down and the budget deficit as a % of GDP is on the decline” she said.

The MP for Atiwa East Constituency further commended AfDB’s receptiveness towards Ghana in these difficult times and said that "I wish to convey our profound gratitude to the African Development Bank for their steadfast support and commitment to Ghana, particularly, over the past three years as we navigated an unprecedented confluence of crises. You have been a true partner in these difficult times. In respect of this request, your responsiveness since the initial engagement in February 2023 has been reassuring and remarkable”.

After describing the grant as an extensive strategy, which was necessary for economic recovery, she called on development partners, civil society and private sector to collaborate with Government to ensure the effectiveness of the grant.

She also extended an open invitation to all stakeholders to emulate the confidence demonstrated by the African Development Bank and put their hands to the wheel as the country strives towards the achievement and successful execution of the programme.

The Country Manager for African Development Bank Group, Ms. Fasika Eyerusalem in her address said that the grant from the African Development Fund was the group’s concessionary financing arm, approved by the Board of Directors of the Bank Group.

The signing of the agreement, she noted, marked a key milestone on the efforts of the Government to rebound the economy and disclosed that, the programme complemented the ongoing International Monetary Fund (IMF) Extended Credit Facility.

“We are confident the Government will remain committed to the reforms identified in this programme so as to take full advantage of it to address the current difficult economic conditions faced by the country.”

The programme she opined, was expected to enhance fiscal consolidation measures and contribute to increasing resource mobilization intended to create more financial capacity for the government’s investments.

The AfDB’s active country portfolio in Ghana comprises 20 operations totalling US$726million across various sectors, with a notable focus on transport and agriculture. This portfolio aligns with the bank’s High 5 priority dimensions in Ghana: Light Up and Power Ghana; Feed Ghana; Industrialise Ghana; Integrate Ghana; and improve the quality of life for Ghanaians.

Present at the signing ceremony were the Director, External Resource Mobilization and Economic Relations Division, Ms. Yvonne Quansah, Acting Director of Budget at the Ministry of Finance, Mr. Thomas Appiagyei, Officials of the Ministry of Finance, the African Development Bank and the Media. END