The African Development Bank Group and the Ministry of Finance in Ghana started a $7.4 million Institutional Support Project to strengthen internal income mobilization and debt management capacity.
The launch, which comes after the signing of subsidies and loan agreements and the initial disbursement of project funds, would facilitate prudent debt management, deepen financial sector reforms and support the country’s capital market development.
The Manager of the Resource Mobilization and Economic Relations Division of the Ministry of Finance at the launch of the project, Emmanuel Fordjour, thanked the African Development Bank for supporting the government.
He expressed his commitment to the Ministry of Finance to accelerate the implementation of the project.
The African Development Bank Land Manager for Ghana, Eyerusalem Fasika, stresses the importance of the project for Ghana’s medium-term development goals in the Ministry of Finance’s 2018-2021 strategic plan.
Fasika notes that the project aligns with the Bank’s Country Strategy Paper (2019-2023) as it provides the basis for additional fiscal space to support investment in infrastructures to stimulate industrialization, job creation, and private sector activity. and to stimulate regional integration.
The project complements the current efforts to strengthen internal resource mobilization in Ghana, following the challenges in income mobilization due to supply disruptions caused by the Covid-19 pandemic.
In particular, the funds will provide technical assistance and capacity building to improve efficiency in the non-taxable income collection and strengthen debt and cash management reforms.
It will also support the country in supporting the transition from aid dependence to prosperity and self-confidence, as well as supporting the establishment of an international financial services center in Accra.
The Director-General of the Securities and Exchange Commission, Daniel Tetteh, praised the Bank for supporting Ghana’s transition to risk-based supervision for its capital markets and the automation of a regulatory compliance monitoring system for the Commission.
Ghana is classified as having a high risk of debt stress, according to the IMF’s recent debt sustainability analysis. The project helps the country return to prudent debt levels through improved debt management capacity and a sustainable cash flow for smooth public spending.