AfDB-Ghana: USD 111.3 Million ADF Resources to Finance Poverty Reduction and Business Environment support Programme
The Board of Directors of the African Development Fund (ADF) today in Tunis approved a loan of USD 70 million (UA 44 million) and a grant of USD 41.3 million (UA 26 million) to finance The Poverty Reduction and Business Environment Support Programme (PRBESP) in Ghana.
The objective of the project is to create accelerated, broad-based economic growth and reduce poverty through an improved business enabling environment for competitiveness of the private sector and enhanced public finance management (PFM) in Ghana. The project is designed to be implemented in twenty six months and would be completed by December 2013. With full implementation of its two components – improved private sector enabling business environment and improved public financial management - the project among others have the following impact indicators:
- Improved public expenditure control based on harmonization of public accounts and automation of cash system;
- Full integration of revenue authorities and agencies with regular provision of revenue reports;
- Satisfactory implementation of the public procurement act adequately reflecting competitive bids by value;
- Improved audit functions and follow-up of auditors’ recommendations fully operational for central government entities;
- Further streamlining of business registration process that results into an increase in the number of new businesses registered.
The project is critical to the implementation of Ghana Shared Growth and Development Agenda (GSGDA). Ghana has been one of the good economic performers in Africa over the past few years. Economic Growth accelerated in 2010 to 7.7% up from 4.0% in 2009. Consequently, significant poverty reduction outcomes have been achieved. This was accompanied by a strong decline in the prevalence of malnutrition which was halved between 1993 and 2008; and progress towards the Millennium Development Goals (MDGs) is encouraging. ADF total resources for PRBESP constitute 13.9% of the total project cost USD 802.3 to which other donors including AFD,CIDA, DANIDA, DFID, EU, Germany, Japan, The Netherlands, Switzerland and the World Bank are contributing. The ADF loan carries a zero interest rate, a 0.75% service charge par annum and a repayment period of 50 years including a grace period of 10 years.
Bank Group current portfolio in Ghana consists of thirty (30) on going projects for a total approved amount of USD 1084.million (UA 682.2 million).
1UA = USD 1.59 as at 13/7/2011