Isaac Adongo, Chair of Parliament’s Finance Committee, clarified that the $360 million financing agreement between Ghana and the International Development Association (IDA) is part of the Second Resilient Recovery Development Policy Financing (DPF) operation. The facility is intended to support Ghana’s efforts in fiscal consolidation, reinforce stability in the financial sector, promote reforms within the energy sector, and strengthen resilience against social and climate challenges.
Adongo emphasized that this loan will sustain Ghana’s momentum in macroeconomic stabilization and drive reforms under the government’s Post-COVID-19 Programme for Economic Growth (PC-PEG). He further noted that the agreement aligns with Ghana’s medium-term debt strategy and, according to current projections, should not adversely affect the country’s debt sustainability.
The financing package is divided into three key areas: restoring fiscal sustainability, strengthening financial sector stability alongside energy sector reforms, and enhancing social, climate, and economic resilience.
However, prior to the loan’s approval, the Minority Caucus, led by Alexander Kwamena Afenyo-Markin, raised objections. They pointed out inconsistencies from the Majority, highlighting that while Parliament approved the first part of the facility under the Akufo-Addo administration, the NDC Minority had previously blocked the second part when it was introduced later in 2024. The Minority argued that the current proposal essentially repackages the earlier loan.
The Committee’s report indicates that this agreement forms part of a broader World Bank support package to Ghana, which includes investment lending and technical assistance. The loan complements prior budgetary support under the first Resilient Recovery DPF and is designed to reinforce Ghana’s ongoing reforms under the IMF programme.