Parliament has approved a $360 million financing agreement between the Government of Ghana and the International Development Association (IDA) of the World Bank Group to aid the country’s post-crisis recovery and build long-term economic resilience.

The facility, part of the Second Resilient Recovery Development Policy Financing (DPF) operation, is expected to support Ghana’s ongoing fiscal consolidation, financial sector reforms, energy sector restructuring, and efforts to strengthen social protection and climate resilience.

The agreement was presented to the House and reviewed by the Finance Committee, which submitted its report earlier this week.

The Committee underscored the importance of the funding in sustaining macroeconomic stability and advancing reforms under the government’s Post-COVID-19 Programme for Economic Growth (PC-PEG).

The financing arrangement focuses on three core areas:

Restoring Fiscal Sustainability – The facility will support efforts to improve domestic revenue mobilisation, enhance public financial management, and promote greater debt transparency, reinforcing progress made under the IMF-supported economic programme.

Strengthening Financial and Energy Sector Stability – It aims to ensure financial sector oversight through risk-based supervision and boost the operational and financial sustainability of the energy sector.

Enhancing Social, Climate, and Economic Resilience – Resources will be directed toward expanding social protection, addressing gender disparities, and integrating climate responsiveness into national development planning.

The $360 million facility is provided on highly concessional terms, including a 1.25% service charge, zero interest, a five-year grace period, and a 30-year repayment schedule. According to the Finance Committee, chaired by Hon. Isaac Adongo, the terms are consistent with Ghana’s medium-term debt strategy and pose no significant risk to the country’s debt sustainability.

This financing forms part of a wider package of World Bank support for Ghana, which also includes technical assistance and investment lending. It builds on the first Resilient Recovery DPF and complements reforms under the ongoing IMF programme.

Following the Committee’s recommendation and noting the critical nature of the intended reforms, Parliament adopted the motion, paving the way for the Ministry of Finance to access the funds and begin implementation of key policy measures.