The Ministry of Finance has highlighted significant implications of President Akufo-Addo’s potential assent to the anti-LGBTQ+ Bill recently passed by Parliament.
In a brief outlining the ramifications of such an action, the Ministry pointed out the possibility of Ghana losing substantial financial support from international institutions such as the World Bank.
According to the Ministry, the passage of the bill could result in Ghana losing an estimated US$3.8 billion in World Bank financing over the next five to six years. Specifically, for the year 2024, Ghana may forfeit US$600 million in budget support and an additional US$250 million designated for the Financial Stability Fund.
This loss of financial aid could adversely affect Ghana’s foreign exchange reserves and exchange rate stability, as these inflows are crucial for bolstering the country’s reserve position.
Outlined below are the key details provided by the Ministry of Finance:
- The anticipated US$300 million financing from the First Ghana Resilient Recovery Development Policy Operation (Budget Support), pending Parliamentary approval, may not be disbursed by the Bank upon approval.
- Ongoing negotiations for the second Ghana Resilient Recovery Development Policy Operation (DPO) for budget support, amounting to US$300 million, could be suspended.
- Negotiations for US$250 million to support the Ghana Financial Stability Fund may also face suspension.
- Disbursement of undisbursed amounts totaling US$2.1 billion for ongoing projects could be suspended.
- Preparation of pipeline projects and declaration of effectiveness for two projects totaling US$900 million may be halted.
The Ministry of Finance cautioned that the potential loss of these financial resources could create a significant financing gap in the 2024 budget. The government would then need to address this gap through additional domestic revenue mobilization and a substantial reduction in expenditure.
Failure to do so could undermine the government’s ability to achieve the targets outlined in the 2024 Budget, potentially derailing the IMF-ECF Programme.
The Promotion of Human Sexual Rights and Ghanaian Family Values Bill was passed by Parliament on February 28, prompting concerns and disquiet among various stakeholders since then.