• Ghana’s Parliament approved a $360 million loan from the World Bank’s IDA
• The funds will help pay road sector arrears, support vulnerable groups, and fight poverty
• Ghana’s total disbursements under the World Bank program now stand at $660 million

Ghana’s Parliament has approved a new $360 million loan from the International Development Association (IDA), part of the World Bank Group, to support the country’s 2025 national budget. The announcement was made on Tuesday, July 1, 2025.

The funds will mainly be used to clear outstanding payments owed to road sector contractors, strengthen social safety nets, support vulnerable groups, and ultimately reduce poverty levels in the country.

This latest financing deal was negotiated under the previous administration as part of an economic program led by the International Monetary Fund (IMF), which Ghana joined in 2023. At that time, Ghana requested a total of $900 million from the World Bank. With this second disbursement of $360 million, the country has now received $660 million in total under the arrangement.

Ghana is recovering from an economic crisis marked by high public debt, persistent inflation, and loss of access to international capital markets since 2022. Fitch Ratings reports that inflation remains high at 15% in 2025, while the World Bank notes that external shocks have slowed economic growth. However, Ghana’s public debt-to-GDP ratio dropped to 70.5% in 2024, supported by Eurobond debt restructuring and strong GDP growth.

In response to the crisis, the government has launched structural reforms to restore stability. One of the flagship initiatives is the 24-Hour Economy program, introduced by President John Dramani Mahama, which aims to boost round-the-clock production and industrial growth. The program is expected to create 1.7 million jobs over the next four years and support the country’s economic transformation. The newly approved World Bank loan is aligned with this recovery plan.

Deputy Finance Minister Thomas Nyarko Ampem also announced that the government plans to submit a new $400 million financing agreement to Parliament in October, as part of ongoing efforts to restore economic stability with IMF backing.

According to World Bank forecasts, Ghana’s economy is projected to grow by 4.3% in 2024, with medium-term growth expected to hover around 5%.