World Bank Approves $360m Budget Support for Ghana

The World Bank has approved a $360 million development policy financing package to help Ghana solidify recent macroeconomic gains and lay the groundwork for long-term, inclusive, and resilient growth. The funding, disbursed under the Second Resilient Recovery Development Policy Operation (DPO), is part of a broader engagement to support the government’s post-crisis economic recovery agenda.

According to the Ministry of Finance, the facility is expected to help deepen fiscal discipline, restore investor confidence, and accelerate structural reforms critical for job creation and private sector growth. “We are confident that the measures supported by this DPO will help enhance fiscal discipline and build a more resilient and inclusive economy, capable of withstanding future shocks,” said Finance Minister Cassiel Ato Forson.

The financing operation is aligned with Ghana’s ongoing reform program under the International Monetary Fund (IMF) Extended Credit Facility. It focuses on four strategic pillars: restoring fiscal sustainability, supporting financial sector stability and private sector development, strengthening financial discipline in the energy sector, and bolstering social and climate resilience.

World Bank Country Director for Ghana, Liberia and Sierra Leone, Robert Taliercio, emphasized the urgency of reforms: “Entrenching fiscal and debt sustainability, improving the business environment, and protecting the most vulnerable remain critical. These measures are essential to unlock private investment and improve livelihoods.”

Key components of the program include:

• Revenue Mobilization & Fiscal Reforms: Measures to boost domestic revenue generation and improve public financial management.

• Financial Sector Stabilization: Enhancing banking sector regulation and encouraging private investment through policy certainty.

• Energy Sector Discipline: Streamlining operations in the power sector to reduce losses and improve cost recovery.

• Social & Climate Resilience: Expanding social protection and mainstreaming climate risk into development planning.

The DPO is part of the World Bank’s broader support package to Ghana, which includes technical assistance and investment lending aimed at building economic resilience and inclusive development.

With Ghana’s economy slowly recovering from recent shocks, including COVID-19, high debt levels, and inflation—the new World Bank support is expected to bolster confidence in the government’s reform agenda while unlocking pathways for sustainable, private sector-led growth.