The Ministry of Finance has warned that Ghana risks losing as much as US$3.8 billion dollars in World Bank investments if President Nana Akufo Addo assents to the anti-LGBT bill recently passed by Parliament.
According to the Ministry, the implications are dire especially for Ghana’s ailing economy now heavily dependent on the IMF bailout.
Part of the brief explained that for 2024, Ghana is likely to lose US$600 million budget support and US$250 million for the Financial Stability Fund.
The Finance Ministry statement which gave a breakdown of specific projects and financing agreements likely to be suspended or lost over the next five to six years include the following:
• The expected US$300 million financing from the First Ghana Resilient Recovery Development Policy Operation (Budget Support) which is currently pending Parliamentary approval might not be disbursed by the Bank when it is approved by Parliament;
• On-going negotiations on the second Ghana Resilient Recovery Development Policy Operation (DPO) for budget support amounting to US$300 million may be suspended;
• On-going negotiations for US$250 million to support the Ghana Financial Stability Fund may be suspended;
• Disbursement of undisbursed amounts totaling US$2.1 billion for ongoing projects will be suspended; and
• Preparation of pipeline projects and declaration of effectiveness for two projects totaling US$900million may be suspended.
In the opinion of the Finance Ministry, the passage of the new Bill demands that Ghana builds a resilient local financial system to ward off potential threats.
