Parliament on Tuesday approved a US$360 million loan agreement between the Government of Ghana and the International Development Association (IDA) of the World Bank Group, as part of efforts to bolster the 2025 national budget and strengthen the country’s economic recovery.
The facility, which forms part of Ghana’s broader programme with the International Monetary Fund (IMF), will be directed towards clearing outstanding arrears owed to road contractors, expanding safety nets for vulnerable groups, and implementing anti-poverty initiatives.
The loan represents the second tranche of a US$900 million support package the government requested from the World Bank under the IMF-supported recovery programme initiated by the previous New Patriotic Party (NPP) administration in 2023. The first disbursement of US$300 million was received on March 27, 2024.
Presenting the Finance Committee’s report on the floor of Parliament, Committee Chairman Isaac Adongo explained that the loan forms part of the World Bank’s Resilient Development Policy Financing initiative. He urged members of the House to support the motion, emphasizing the importance of the funds in restoring fiscal stability and protecting livelihoods.
“This financing agreement is critical to advancing the government’s development priorities and ensuring social protection amid ongoing economic reforms,” Mr. Adongo said.
Deputy Minister of Finance, Thomas Nyarko Ampem, also addressed the House, indicating that the government will soon present an additional US$400 million financing agreement in October 2025, which will form part of the third phase of Ghana’s IMF-backed economic reform programme.
He stressed that the funds would help consolidate macroeconomic gains, stabilize public finances, and sustain progress in poverty reduction efforts.
The approval of this latest facility comes at a time when the government is ramping up measures to restore investor confidence and rebuild the economy following years of fiscal stress and global economic shocks.
