The World Bank has approved a US$200 million International Development Association, IDA, credit to support Ghana in strengthening its institutions, improving competitiveness for job creation, and maintaining social safety nets to protect the poor and vulnerable.
The Second Macro Economic Stability for Competitiveness and Growth Development Policy Financing operation will specifically support reforms by government to manage better subsidies and arrears particularly by State Owned Enterprises in the Energy sector, which have contributed to weakening Ghana’s Fiscal position and have adversely affected growth.
A statement issued by the World Bank said as Ghana’s economy improves and creates more and better jobs, there is also the need to protect and promote livelihoods of the poor and the vulnerable segment of the population to help break inter-generational poverty.
It stated that building institutions for predictable fiscal outcomes and improving the business environment for the Private Sector are likely to remain priorities for government as Medium to long-term goals.
The Second Macro Economic operation is the last in a series of two single-tranche operations to support the implementation of Ghana’s Second Shared Growth and Development Agenda over the 2014-2017 period.
The operation complements the Macro Economic Stabilization program supported under the IMF Extended Credit Facility. In addition, technical assistance to undertake reforms is being provided under the Ghana Economic Management Strengthening Technical Assistance Project supported by the World Bank.