Parliament Approves $360m World Bank Deal to Boost Ghana’s Economic Recovery and Resilience
Accra, July 2, 2025 — Parliament has approved a $360 million financing agreement between the Government of Ghana and the International Development Association (IDA) of the World Bank Group to accelerate the country’s post-crisis economic recovery and build long-term resilience.
The agreement is part of the Second Resilient Recovery Development Policy Financing (DPF) programme and aims to support fiscal consolidation, financial and energy sector reforms, and enhance social protection and climate resilience.
Strategic Focus
The facility is anchored on three critical pillars:
- Restoring Fiscal Sustainability
- Strengthening domestic revenue mobilisation
- Enhancing public financial management
- Improving debt transparency and accountability
- Financial and Energy Sector Reforms
- Improving financial sector supervision
- Boosting the operational efficiency of the energy sector
- Addressing long-standing arrears in the energy value chain
- Enhancing Social, Climate, and Economic Resilience
- Expanding social protection schemes
- Promoting gender equity in policy planning
- Supporting climate-responsive planning and budgeting
Concessional Terms
The $360 million IDA loan comes with favourable terms, including:
- 1.25% service charge
- Zero interest rate
- 5-year grace period
- 30-year repayment tenure
These terms are in line with Ghana’s Medium-Term Debt Strategy and were deemed by the Finance Committee to be sustainable and non-disruptive to debt servicing obligations.
Parliamentary Endorsement
The Finance Committee, chaired by Hon. Isaac Adongo, reviewed the agreement and recommended its adoption, citing its alignment with Ghana’s Post-COVID-19 Programme for Economic Growth (PC-PEG) and the ongoing IMF-backed economic reforms.
“The facility will sustain the momentum of macroeconomic stabilisation and reforms under the PC-PEG while strengthening long-term development foundations,” the Committee noted in its report.
Following debate, Parliament unanimously approved the motion, granting the Ministry of Finance the green light to access the funds and implement associated policy measures.
Broader Reform Context
This agreement complements earlier budgetary support under the First Resilient Recovery DPF and forms part of the World Bank’s broader engagement in Ghana, including technical assistance and investment lending.
With this approval, Ghana aims to consolidate economic gains, deepen structural reforms, and protect the most vulnerable in society amidst global economic uncertainties.
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