News Guide Africa

Tag: World Bank

  • Ghana’s economic woes are self-inflicted says World Bank… cautions against rushing back to capital market

     

    “World Bank warns Ghana against premature return to capital markets.”

     

    Adnan Adams Mohammed

     

     

    Ghana’s economic challenges have been attributed by the World Bank to unguided fiscal systems which led to overburdened debt accumulation and unmatching revenues.

     

    The World Bank believes that weak expenditure controls enabled a vicious circle leading to reduced fiscal space and unsustainable debt accumulation, particularly over-reliant on external commercial debt, this being made worse by declining tax revenue in the years preceding the outbreak of the country’s still ongoing economic crisis.

     

    Among its key findings in the Ghana Public Finance Review, the Bretton Woods institution indicated that the lack of fiscal discipline was marked by weak budgetary institutions, high fiscal liabilities from the financial and energy sectors, and insufficient revenue collection.

     

    “Again, a costly clean-up of the financial sector and ongoing losses in the energy sector increased fiscal pressures”, the report titled “Building the Foundations for a Resilient and Equitable Fiscal Policy” asserted.

     

    “With precarious fiscal conditions, the prolonged and expensive fiscal response to the COVID-19 and the subsequent deterioration of global conditions plunged Ghana into a full-fledged crisis – and into debt distress – in 2022.”

     

    Also, the Bank emphasized that Ghana’s fast Gross Domestic Product (GDP) growth, fuelled by debt, left it highly vulnerable to global shocks.

     

    The report, however, noted that Ghana has made progress toward economic stabilisation but warned that more needs to be done to meet monetary and fiscal targets and create lasting fiscal space.

     

    It proposed that stronger domestic revenue mobilisation is necessary to create fiscal space for critical development priorities. Currently, Ghana’s tax collection rate falls below that of its peers, although not for all taxes

     

    Consequently, the Country Director for Ghana, Liberia, and Sierra Leone, Robert Taliercio, while speaking at the launch of the report, cautioned Ghana against making a premature return to international capital markets, warning that such a move could undermine the country’s recent economic recovery.

     

    He warned that an early return could send negative signals to investors, leading to a reversal of gains made under Ghana’s debt restructuring efforts and exposing the nation to unsustainable borrowing costs.

     

    His warning follows Ghana’s successful restructuring of both domestic and external debts, which secured significant relief under the US$3 billion International Monetary Fund’s Extended Credit Facility (ECF) programme.

     

    While acknowledging these achievements, Taliercio cautioned against complacency, noting that Ghana has had a history of falling back into unsustainable financial practices when an economic crisis recedes.

     

    “The risk now is falling into complacency with these achievements and returning to a business-as-usual mindset – a recurring error in the past. Ghana has requested a record 17 IMF programs and has been under active IMF supervision for 40 out of its 68 years of independence,” he noted.

     

    He further stressed that rushing back to international markets for dollar funding could be counterproductive, potentially triggering a return to high borrowing costs and renewed financial instability.

     

    Since 2022, Ghana has been locked out of international capital markets due to soaring debt levels, sluggish economic growth, and a weak balance of payments.

     

    While the country is eager to regain investor confidence, the World Bank warns that timing and fiscal discipline will be critical in ensuring long-term economic stability.

     

     

  • Faced with Climate Challenges and Conflicts

    Climate challenges and conflicts

     

    The Sahel and West Africa Commit to Accelerating Livestock Sector Development and Securing Pastoral Systems

    Nouakchott, November 8, 2024 – On the third day of the High-Level Forum on Pastoralism in the Sahel and West Africa (‘Nouakchott+10′), participants – including political decision-makers, representatives of pastoral and agro-pastoral organizations, members of the private sector, regional organizations and civil society, from Benin, Burkina Faso, Chad, Côte d’Ivoire, Gambia, Ghana, Guinea, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone and Togo – called for an ambitious commitment to building peace and developing rural, pastoral and agro-pastoral territories in the Sahel and West Africa. Collectively, they emphasized the need to enhance the value of different livestock systems and strengthen the complementarity between agriculture and livestock, which together form the foundation for the inclusive and sustainable development of national and regional economies.

    This Forum comes ten years after the first Nouakchott Declaration of 2013, which aimed to secure the livelihoods and means of production of pastoral populations and increase the gross product of livestock activities, with a view to significantly boosting pastoralists’ incomes.

    “Counting only the regional projects coordinated by our institution, more than a billion dollars have been invested between 2013 and 2024 in infrastructure, improved animal health, and access to services, thanks to the technical and financial support of the World Bank Group and other partners”, said Dr Abdoulaye Mohamadou, Executive Secretary of the Permanent Inter-State Committee for Drought Control in the Sahel (CILSS).

    Participants gave a generally positive assessment of the progress made. Over the past decade, more than 13 million hectares of pastoral land have been placed under sustainable management, 559 additional water points have been built, and almost 4,200 km of transhumance corridors have been marked out and secured. In terms of animal health, more than 600 million animals have been vaccinated, 137 veterinarians have been trained, and 415 additional vaccination parks have been built. Market infrastructures have been strengthened with the construction of 362 additional livestock markets, and actions have been taken to promote the economic and social inclusion of nearly 56,000 people, over 86% of whom are women, who have been able to strengthen and diversify their economic activities.

    However, persistent challenges, notably linked to climate change, insecurity and land pressure, continue to threaten the viability of these production systems, underlining the need for reinforced collective action at scale, particularly to facilitate mobility.

    The Nouakchott+10 Forum marks a decisive step for the future of millions of people who depend directly on the vital sector of pastoralism and agropastoralism. In the face of these challenges, participants agreed to secure agro-pastoral land, improve land governance, and develop sustainable value chains to strengthen the resilience of pastoral and agro-pastoral systems. They also agreed to promote synergies between agriculture and livestock, to strengthen the inclusion of young people and women in pastoral and agricultural activities, and to enhance regional information systems to better inform policy-making. They called for the needs of coastal countries and certain Central African countries to be integrated into development efforts, based on the complementarity between sedentary and mobile livestock systems for the peaceful management of territories.

    Participants in the Nouakchott+10 Forum ask the Chairman-in-Office of the CILSS to convey this Declaration to his peers.

    “For Mauritania, an agro-pastoral country par excellence, joint African action at all levels is a priority strategic objective. The new Nouakchott Declaration will materialize and reinforce regional solidarity in favor of pastoralism and integrated socio-economic development”, said Moctar Al Housseynou LAM, Minister Secretary General of the Government of the Islamic Republic of Mauritania.

    Country representatives pledged to provide the requisite political support, while mobilizing substantial financial and human resources, both internal and external, to enable the implementation of their commitment. In addition, they affirmed their determination to mobilize private investors to encourage the development of animal value chains, particularly in the feed supply, meat production, and local milk collection and processing segments. They asked the current Chairman of CILSS to convey the new Declaration to his peers in the sub-region.

    The partners present expressed their support for the Forum’s conclusions, and pledged to continue their technical and financial support for their implementation.

    “Our collective mission is to enhance the strategic role of Sahelian territories in the regional economy, and to promote mobile livestock farming not only for milk, meat and other products, but also for the services it provides to Sahelian and West African society as a whole, particularly with regard to climate change”, said Chakib Jenane, Director of Sustainable Development for West and Central Africa at the World Bank. He concluded on the importance of giving pastoralism a prominent place in continental policies: “Nouakchott+10 must send strong messages to the African Union Commission, in order to strengthen the place of pastoralism in regional policies and provide significant support to our pastoral communities”.

  • Cedi ranked 4th weakest in Sub-Saharan Africa – WB

    Cedi Depreciation

     

     

    Adnan Adams Mohammed

     

    After losing approximately 24 percent of its value against the US dollar, the Ghana Cedi is currently the fourth weakest or worst performing currency in Sub-Saharan Africa (SSA).

     

     

    This is according to the World Bank’s October 2024 Africa Pulse Report launched last week. Ghana is ahead of Nigeria, Ethiopia and South Sudan with worst performing currency in 2024.

     

    South Sudan’s pound recorded over 60% loss, Ethiopia’s birr (51%), and Nigeria’s naira (over 40%). In contrast, the Kenyan shilling has emerged as the best-performing currency in Africa, showing a year-to-date appreciation of about 21% as of August 2024.

     

    “Ethiopia, Ghana, and Nigeria are among the worst-performing in Africa this year, with their currencies continuing to weaken under mounting pressure for foreign exchange,” the report stated.

     

    It further explained that by the end of August 2024, the Ethiopian birr, Nigerian naira, and South Sudanese pound had experienced significant depreciation.

     

    The Nigerian naira, in particular, lost around 43% of its value due to the central bank’s heightened demand for US dollars in the parallel market, limited dollar inflows, and slow disbursement of foreign exchange to currency exchange bureaus.

     

    On the other hand, some currencies that weakened in 2023 have seen a recovery or stabilisation.

     

    The Kenyan shilling’s 21% appreciation stands out, while the South African rand and currencies pegged to it have strengthened by 3.1% this year, after significant losses in the previous year.

     

    Despite these improvements, the report warns that exchange rate pressures and foreign exchange shortages remain major concerns for African policymakers.

     

    More than a third of the 30 countries and two currency unions (the Economic and Monetary Community of Central Africa and WAEMU) surveyed are expected to have less than three months’ worth of import cover in international reserves by the end of 2024.

     

     

  • Ghana owes US$3.5bn to Deutsche Bank to emerge as highest creditor

    Deutsche Bank of Germany

    Adnan Adams Mohammed

     

    In a shocking revelation, it has emerged that Deutsche Bank of Germany is Ghana’s leading creditor to a tune of US$3.5 billion.

     

    The German bank places top of Ghana’s commonly known bilateral and multilateral creditors such as China, the World Bank, and the International Monetary Fund.

     

    According to Imani Africa’s data, the investment banking company have mainly committed to heavy infrastructure projects in the country. The New Kejetia Market Project and the Western Railway Line are some of the infrastructure projects funded by Deutsche Bank.

     

    “Deutsche Bank’s lending commitment to Ghana is thus roughly double that of China and nearly equivalent to all the money Ghana has borrowed from countries richer than itself,” Vice President of IMANI Africa, Bright Simons revealed.

     

    He added that “Deutsche Bank has been busy! From funding the Kejetia market redevelopment (largest such project in West Africa) and various roads to financing trauma hospitals and attempts to fix fast-growing Tamale’s water supply problems, Deutsche Bank’s bet on Ghana was once massive.”

     

    The two multilateral creditors; the World Bank and the IMF come after Deutsche Bank.

     

    World Bank has credited US$1.7 billion to Ghana although it has committed a total of US$3.9 billion while the IMF has also credited US$2.3 billion to the country.

     

    The much-talked-about China has also loaned US$1.7 billion while two leading Eurobond investors; Black Rock and Franklin Templeton currently have US$1 million and US$30 million credits respectively to Ghana although they were higher in previous years.

     

    “BlackRock is believed by some to be Ghana’s largest Eurobond investor. Yet, even at the peak of its holdings in 2020, it carried roughly $630 million. By May 2023, it was reporting just a little over $1 million in holdings of Ghanaian Eurobonds. It appears to have sold most of its holdings over time,” the Vice President of IMANI emphasized.

     

    He added that “As of July 2024, Franklin Templeton held more than $30 million of Ghanaian government debt, a steep fall from the $1 billion portfolio it held just a few years ago.”

     

     

    Although the Deutsche Bank has provided significant funds to finance critical infrastructure projects in the country, experts argue that the inefficiencies in the execution of these projects combined with high-interest cost and increasing debt burden, raise concerns about the sustainability of Ghana’s financial and debt stability.

     

  • Ghanaians to expect mid-year budget review on July 23 .

     

    Dr Mohammed Amin Adam

    Adnan Adams Mohammed

     

    All things being equal, the finance minister is to present the 2024 Mid-Year Budget Review to Parliament tomorrow, Tuesday, 23 July 2024.

     

    This presentation will provide updates on the implementation of the 2024 Budget and insights into the country’s economic and fiscal performance for the first half of the year.

     

    “The budget review is necessary for introduction of new measures to rejuvenate the economy”, Dr. Mohammed Amin Adam, the Minister for Finance, has said.

     

    Majority Chief Whip Frank Annoh-Dompreh announced the upcoming presentation while presenting the Business Statement for the week to the House.

     

    “Hon members, the Minister of Finance is expected to present the Mid-Year Review of the Budget Statement on Economic Policy of the government for the 2024 financial year on Tuesday, July 23,” he stated.

     

    This mid-year review is highly anticipated as it will shed light on the government’s progress in executing its economic policies and managing fiscal resources.

     

    It will also outline any necessary adjustments to ensure the country’s financial stability and growth for the remainder of the year.

     

    Already, Ghana’s economy is being touted by the World Bank in its latest Country Policy and Institutional Assessment (CPIA) report and the Moody’s, and international rating agency.

     

    Moody’s recently hinted that Ghana’s economy is likely to witness credit ratings upgrade after it successfully restructured its Eurobonds.

     

    Currently, Ghana’s rating stands at Caa3 for local currency and Ca for foreign currency. These ratings reflect the government’s ongoing debt restructuring efforts under the G20 common framework, initiated in December 2022.

     

    Moody’s, in a recent report stated that, once the restructuring is complete, all ratings are likely to be aligned at a higher level, though still within the Caa-rating category due to liquidity constraints typically following a default event. The IMF program supports fiscal consolidation and funding access, benefiting from Ghana’s relatively robust institutional capacity.

     

    “..However, high inflation and tight monetary conditions remain key credit challenges”, New York-based ratings agency has said.

     

    The restructuring of local currency debt, excluding Treasury Bills, was completed in 2023. Regarding foreign currency debt, which constitutes nearly half of Ghana’s total debt, significant progress has been made.

     

    Last month, Ghana’s Ministry of Finance announced an agreement in principle with bondholders to restructure $13.1 billion of Eurobond debt, which accounted for 21% of Ghana’s total debt in 2023. Under this agreement, bondholders would forgo around $4.7 billion in principal without state-contingent triggers. This followed a June 12 MoU between the Finance Ministry and the Official Creditor Committee (OCC) to restructure $5.4 billion of official sector external debt. The IMF confirmed on June 28 that both restructurings are consistent with its program parameters, though the OCC has yet to confirm that the bondholder agreement is comparable in debt treatment to the MoU.

     

    Moody’s assesses Ghana’s economic strength at ‘ba2’, balancing the country’s growth potential in the oil and non-oil sectors against its small size and low wealth levels. The ‘caa2’ rating for institutions and governance strength reflects very weak fiscal and monetary policy effectiveness, which led to unsustainable government debt and the need for restructuring.

     

    Ghana’s fiscal strength is rated ‘ca’, indicating very weak debt affordability and a very high debt burden. The ongoing debt restructuring is expected to improve these metrics. Moody’s also highlighted Ghana’s susceptibility to event risk at ‘ca’, driven by elevated government liquidity risk due to high gross borrowing requirements and limited borrowing options.

     

    The outlook for Ghana remains stable, reflecting the ongoing foreign currency debt restructuring. Expected losses for bondholders align with the current ratings’ loss-given-default range. Moody’s indicated that a rating downgrade is unlikely, given the recent progress on foreign currency debt restructuring and the agreement’s terms with bondholders.

     

    However, if the agreement does not proceed, it could derail the debt restructuring process, potentially leading to downward pressure on both local and foreign currency ratings. Moody’s emphasized that they will likely upgrade the local and foreign currency ratings following the exchange of the Eurobonds.

     

    The June 24 agreement provides substantial debt relief to the government, complementing earlier local currency debt restructuring. The restructuring of official sector debt will bring additional, yet unknown, liquidity relief. Post-restructuring, Ghana’s ratings are likely to be higher, though still reflecting liquidity constraints.

     

     

  • World Bank touts Ghana’s inflation fight mechanism .

     

    World Bank

    Adnan Adams Mohammed

     

    Chief Economist at World Bank has touted the Bank of Ghana’s monetary policy implementation in controlling inflation.

     

    Contained in the World Bank’s latest Country Policy and Institutional Assessment (CPIA) report, titled “CPIA Africa 2024: Structural Reforms for a Vibrant Private Sector”, the report underscored the significant achievements of the Bank of Ghana in maintaining monetary stability and enhancing economic credibility.

     

    The report, which focused on reforms across policy areas in Sub- Saharan Africa, noted that “Ghana’s authorities committed to policy reforms to strengthen the central bank’s independence”.

     

    “This contributed to pursuing tight monetary policy, raising reserve ratios, and implementing a fiscal reform program that helped to reduce year- on-year inflation from 54 percent in December 2022 to 23 percent in December 2023”, the report  launched in Accra, Ghana, last week posited.

     

    Andrew Dabalen, World Bank Chief Economist for Africa, noted at report launch that, “The CPIA review offers a chance to identify areas of relative weakness and engage in a dialogue around policy reforms that can produce better development outcomes.”

     

    Overall, the report highlights key trends and best practices to guide policymakers and international investors on the policy developments in the region, following the World Bank’s annual CPIA of countries eligible for International Development Association (IDA) assistance.

     

    The observation made in the report reflects the long-held view of analysts and economists that the central bank’s monetary policy tightening stance has largely contributed to more than 30 percentage points drop in inflation from December 2022 to date.

     

    To buttress the World Bank’s findings as contained in the report, the Governor of the Bank of Ghana, Dr. Ernest Addison, speaking at the Ministry of Finance-organised SME Growth and Opportunity Summit held in Accra, last week,

    noted that “the Bank of Ghana has stepped up efforts to bring inflation under control, eliminate monetary financing of budget, and rebuild foreign currency buffers”.

     

    “Just last week, the country successfully went through completion of the Second Review of the IMF programme by the IMF Board.

     

    The Board reaffirmed the generally strong program performance and clear signs of emerging economic stabilisation.

     

    However, noting substantial downside external and domestic risks, they underscored the importance of steadfast reform implementation to entrench macroeconomic stability and debt sustainability while fostering sustained growth and poverty reduction. Sustaining macroeconomic stability requires the Bank of Ghana to continue to ensure that the BOG keeps an eye on inflation”, the Governor noted.

     

    Also, the CPIA report indicated the Central Bank’s independent stance has been instrumental in transitioning from managing global economic shocks to establishing stronger financial policies and transparency. “The region’s strong performance across multiple measures of Central Bank independence is a testament to the Bank of Ghana’s effective strategies,” the report noted.

     

    “Under the stewardship of the Bank of Ghana, Ghana has witnessed a significant reduction in inflation. The central bank’s commitment to a tight monetary policy, including raising reserve ratios and halting monetary financing of the deficit, has been pivotal. These measures have resulted in a remarkable decrease in year-over-year inflation, from 54% in December 2022 to 23% in December 2023. “Ghana’s reforms around central bank independence played a crucial role in this achievement,” the report emphasised.

     

    The CPIA report also highlighted that the region’s average score for monetary and exchange rate policy improved to 3.4 in 2023, with Ghana being one of the notable countries showing significant progress.

     

    In addition to monetary policy, the Bank of Ghana has been a driving force in enhancing fiscal transparency and responsibility.

     

    It noted that the government’s commitment to reinstating its fiscal rule in the medium term and strengthening the independence of its Fiscal Council reflects the collaborative efforts to bolster economic stability. These initiatives aim to enhance the credibility of the council’s macro-fiscal assumptions and ensure compliance with the fiscal rule.

     

    The CPIA, an annual diagnostic tool for countries eligible for financing from the International Development Association (IDA), highlights areas of policy reform and economic progress.

     

  • World Bank’s $20bn is to help triple guarantees and risk insurance.

     

     

    World bank

     

     

    Adnan Adams Mohammed

     

    The World Bank plans to triple the provision of guarantees and risk insurance provided around the world to US$20 billion a year.

     

    This will be implemented through a new one-stop-shop loan and investment guarantee platform.

     

    The Breton Wood plans to achieve the target by 2030 and which aims to lift investment in riskier areas from Africa to Ukraine, will combine key units of World Bank, International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA).

     

    “The combination would see it start to back new innovative financing including carbon credits, debt-for-nature swaps and off-grid energy solutions in remote parts of Africa”, Hiroshi Matano, MIGA Executive Vice President, told Reuters last week.

     

    “Guarantees could also be used to attract private sector investors to provide “take-out” financing to replace standard World Bank or IFC loans, freeing up overall lending capacity.”

     

    He said that with guarantee products becoming more mainstream across the World Bank Group, there would be new uses developed for them, adding: “How you use it, I think it’s where we can be really innovative and creative.”

     

    For context, the World Bank Group gave almost $6.5 billion of guarantees last year and is expecting to provide roughly $10 billion this year, so the target will see a huge expansion and swell MIGA’s balance sheet which currently sits at around $30 billion.

     

    Asked whether the annual amounts could even top the $20 billion target he added World Bank president “Ajay (Banga) wants us to be ambitious, so if there is demand, of course, we’ll consider that.”

     

    The changes are the first tangible results from a group of private-sector investment executives assembled last year by Banga, dubbed the Private Sector Investment Lab, to develop ideas to draw more private capital to clean energy and other investments in developing countries.

     

    The plan aims to simplify guarantee products into a single comprehensive menu that would allow clients to easily identify and select the instrument best suiting their needs. A new common approach should standardize guarantee reviews, replacing a patchwork of different processes, rules and standards.

     

     

     

  • Ghana records US$4.6bn remittances in 2023…ranks Africa’s second highest.

     

    World bank

     

     

    Adnan Adams Mohammed

     

    Ghana recorded US$4.6 billion in remittance receipts in 2023, a marginal decrease from the 2022 figure of US$4.7 billion.

     

    Although, Ghana’s remittances receipts fell slightly last year, they were still the second highest in Africa, according to the World Bank’s 2024 Migration Development Report.

     

    Having the largest population size on the continent, Nigeria recorded US$19.5 billion in remittance flows to top the list while Kenya ranked third with US$4.2 billion, Zimbabwe fourth with US$3.1 billion, and Senegal fifth with US$2.9 billion in remittance inflows. The World Bank in its report highlighted the increasing importance of remittances.

     

    “Remittances have become the most important foreign exchange earner in several countries,” the World Bank stated emphasizing that, “in Kenya, remittances now exceed the country’s key exports, including tourism, tea, coffee, and horticulture.”

     

    The Bretton Woods institution also noted that remittance flows to Sub-Saharan Africa were nearly 1.5 times the size of Foreign Direct Investment (FDI) inflows in 2023 and demonstrated greater stability.

     

    FDI flows to the region reached US$38.6 billion in 2023 driven primarily by greenfield project announcements in Kenya and Nigeria according to a UNCTAD 2024 report.

     

    Countries heavily dependent on remittance receipts as contributors to Gross Domestic Product (GDP) include the Gambia, Lesotho, Comoros, Liberia, and Cabo Verde, with remittances contributing more than a fifth of GDP in the first three countries.

     

    The report further detailed regional growth in remittances for 2023, largely driven by strong increases in Uganda (up 15% to US$1.4 billion), Rwanda (up 9.3% to US$0.5 billion), Kenya (up 2.6% to US$4.2 billion), and Tanzania (up 4% to US$0.7 billion).

     

    However, remittances to Nigeria, which account for approximately 35% of total remittance inflows to the region, decreased by 2.9% to US$19.5 billion.

     

    Within the period under study, the peak and trough of personal remittances received in Ghana were reached in 2015 and 2010 with US$5.0 billion and US$140 million, respectively.

     

    The Economic Times defines remittances as the transfer of funds between parties as a bill, an invoice, or even a gift. However, “remittance” refers more broadly to the funds migrants send to their relatives in their home country while working and living abroad. These are also referred to as worker or migrant transfers.

     

    Remittance means “send back.” In terms of money, a remittance is the sending of money to a recipient who lives abroad. Most families living in slow-growing economies and developing nations rely heavily on these remittances as their main source of income.

     

    Foreign workers who send a portion of their pay to their families back home frequently do this.

    Most money transfers are now done electronically.

     

  • World Bank Approves Grant to Boost Community Access to Carbon Credits.

    World bank

    The World Bank and Solidaridad West Africa (SWA) – leading implementation for Ghana – have signed a grant agreement for a US$4 million project to boost social inclusion in the sharing of benefits generated within the Ghana Cocoa Forest Reducing Emissions from Deforestation and Forest Degradation (REDD+) Program (GCRP).

    By directly engaging 20,000 farmers from 100 communities, including women, youth, migrant farmers, and persons with disabilities, the project promises to significantly enhance their participation in climate action and provide equitable access to emissions reduction benefits.

     

    The project is financed by the World Bank managed Enhancing Access to Benefits while Lowering Emissions (EnABLE) Trust Fund, which promotes social inclusion and gender equality in climate finance. Ghana is the first country to receive an EnABLE grant that supports the Civil Society Organizations (CSOs) distributing benefits earned by communities for reducing emissions and generating high integrity carbon credits.

     

    “This grant signing is a major milestone for amplifying the voices of Ghana’s most vulnerable groups, particularly women, in the climate change discourse,” said World Bank Country Director for Ghana, Liberia, and Sierra Leone, Robert R. Taliercio. “By partnering with organizations like Solidaridad West Africa that have deep roots in local communities, we can ensure equitable access to emissions reduction benefits in cocoa landscapes.”

     

    The project will build capacity to increase the knowledge and skills of target groups to help them engage in the Emissions Reduction Program (ERP). This includes developing communication toolkits tailored to demystify ERP processes and benefit sharing, as well as training programs to foster a deeper understanding of climate action policies. Moreover, the inclusion of these groups in REDD+ processes will foster inclusive dialogue and policy formulation.

     

    The Forestry Commission which is the lead implementer of the GCFRP in partnership with the Ghana Cocoa Board, is enthusiastic about the project as it has the capacity to stimulate the large-scale participation of local communities in sustainable practices, that will generate more emission reductions and removals with resultant payments for community development.

     

    “Within the Carbon Fund Portfolio and beyond, Ghana has become a reference point for the successful implementation of jurisdictional REDD+. We therefore count on the expertise of Solidaridad West Africa and Tropenbos Ghana to implement the EnABLE project to enhance actions to reverse and halt deforestation and forest degradation for people, Forests and Climate benefits at the national and global level,” said, Mr. John M. Allotey, Chief Executive of Ghana’s Forestry Commission. “We are also grateful to the donors of the EnABLE fund and the World Bank for making this possible,” he added.

     

    Other project activities include support for locally led, climate-resilient livelihoods, particularly for women, through the provision of seed grants and technical support as well as support for the development of green infrastructure and the promotion of climate-smart agricultural practices. Legal literacy on land rights is another crucial aspect of the project, focusing on the new provisions in Ghana’s 2020 Land Act, essential for ensuring the participation of women in REDD+ programs that require access to land.

     

    “The future of Ghana’s forests is at the crossroads, and the EnABLE project is coming at a critical time when the country is entrenching its access to the carbon market. Solidaridad is proud to be associated with the project to secure the inclusion of farmers and other local community groups in decision-making and the protection of forests so they can share in the associated carbon benefits that accrue from their efforts,” said Isaac Kwadwo Gyamfi, Regional Director for Solidaridad West Africa. “It is our expectation that the project will ensure that no one is left behind and ultimately stimulate the scale up of inclusivity in other programs and platforms in the landscape.”

     

    The project will be jointly implemented by Solidaridad West Africa (SWA) and Tropenbos Ghana.

     

    “Our approach highlights inclusiveness, gender equality, and social equity to ensure that, all stakeholders can participate meaningfully and benefit equitably from initiatives aimed at mitigating climate change and promoting environmental sustainability,” said Mercy Owusu Ansah, Country Director Tropenbos Ghana. “As local communities, private sector, the government, and other stakeholders work together to reduce emissions by implementing low-carbon ideas and technology in a sustainable manner, they must receive fair and socially inclusive payments as incentives for this action.”

  • 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.