World Bank to provide $1.4b aid to Ghana in new three-year strategy

The World Bank said today September 19, 2013 it will be lining up about $1.4 billion to finance projects in Ghana between 2013 and 2016.

Most of the financing will come from the Bank’s International Development Association (IDA), the fund for the world’s poorest countries.

The Bank announced this when its Board of Executive Directors today discussed a new Country Partnership Strategy (CPS) for Ghana that would provide a range of services to meet the country’s development needs.

“The strategy includes financing of approximately $1.4 billion in new assistance between 2013-2016, from the IDA,” the World Bank said in a statement.

The CPS is what will serve as the World Bank Group’s main instrument to support Ghana’s efforts to promote economic growth.

According to the World Bank, the new CPS builds on the important macroeconomic and social gains made under the previous Country Assistance Strategy (CAS) which ended in June of 2012.

It said the new strategy was developed around three main themes – Improve economic institutions; Improve competitiveness and job creation; and Protect the poor and vulnerable.

The CPS inherits a substantial portfolio consisting of 25 operations with a total commitment of $1.5 billion, in addition to eight regional operations with an additional net commitment of $752 million, said Yusupha Crookes, the World Bank Country Director for Ghana.

The World Bank indicated that its current total group exposure to Ghana is approximately $3.5 billion, consisting of $2.3 billion of credits and grants from IDA, $341 million in investment guarantees from MIGA, and a committed portfolio of $849 million in investments from IFC’s own account, in addition to $136 million comprising B-loans and parallel loans for which IFC is the agent.

By Ekow Quandzie