News Guide Africa

Tag: international development association

  • Ghana gets US$260m from World Bank to boost energy sector and clean cooking solutions.

     

    World bank

    The World Bank has approved a US$250 million credit from the International Development Association (IDA) and an additional US$10 million grant from the Energy Sector Management Assistance Programme to support a four-year Ghana Energy Sector Recovery Programme for Results (PforR).

    This initiative aims to improve the financial viability of electricity distribution and increase access to clean cooking solutions in Ghana.

    The PforR is expected to provide financing directly to energy sector utilities to implement capital expenditure programs and complement regulatory and policy reforms in the energy sector under the World Bank’s Development Policy Financing series and the ongoing IMF Extended Credit Facility Programme for Ghana.

    The Clean Cooking Component of the programme is designed to increase access for Ghanaian households, schools, and businesses to Liquefied Petroleum Gas (LPG) for domestic and commercial use.

    The PforR will provide direct incentives to subsidize the cost of stoves and accessories.

    The ESRP is expected to offer a wide range of benefits to consumers, including market development, affordability, energy access and equity, health improvements, and environmental protection against air pollution and associated health risks.

    These details were disclosed by the Ministry of Finance in a statement issued last week.

  • World Bank Supports Ghana to Strengthen its Financial Sector.

     

     

     

    The World Bank today approved a $250 million International Development Association (IDA)* credit for a five-year Ghana Financial Stability Project. The project will support Ghana’s Financial Sector Strengthening Strategy (FSSS) by contributing to financial stability through the recapitalization of viable Banks and Specialized Deposit-taking Institutions (SDIs) impacted by Ghana’s Domestic Debt Exchange Program (DDEP).

     

    The financial system is critical to the functioning of the Ghanaian economy, providing critical services to households, firms, government, and supporting economic growth. To address the severe impact of the DDEP on financial institutions, the Government established the Ghana Financial Sector Stability Fund (GFSF) to provide solvency support to banks, pension funds, insurance companies fund managers and collective investment schemes.

     

    “This project will contribute to Ghana’s financial stability, by providing solvency support to banks and SDIs impacted by the DDEP through the GFSF.” said Robert R. Taliercio, World Bank Country Director for Ghana, Liberia, and Sierra Leone. “Through direct support to banks and SDIs, the project will benefit Ghana’s financial sector and the economy by supporting the access of depositors and other financial consumers to savings, payments, and other core financial services provided by adequately capitalized banks and SDIs.“

     

    The Ghana Financial Stability project is expected to immediately benefit eligible undercapitalized but viable banks and SDIs and become accessible to other banks and SDIs that may need support in the future due to potential new losses and providing a backstop against unexpected losses.

     

    The World bank

    The project promotes financial stability, a key requirement to protect people and preserve jobs,” said Carlos Leonardo Vicente, Senior Financial Specialist and Team Lead.

     

    The project complements the World Bank’s Development Program Financing series and the IMF-Extended Credit Facility, which support reforms to improve the macroeconomic environment and enable financial institutions to operate profitably and generate internal capital. It also complements other World Bank funded projects aimed at economic recovery and job creation in Ghana, such as the Ghana Development Financing Project which supported the establishment of the Development Bank of Ghana and provides long-term financing to small and medium enterprises and small corporates.