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COVID-19: Ghana Secures $500m Debt Repayment Freeze From World Bank

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COVID-19: Ghana Secures $500m Debt Repayment Freeze From World Bank

Nana Addo Danquah Akufo-Addo – President of the Republic of Ghana

Ghana has secured a $500-million dollar freeze in debt and interest repayment for the rest of this year from the World Bank, President Nana Akufo-Addo has announced.

This forms part of a Pan-African effort to bring debt relief to Africa due to the economic impact of the novel coronavirus pandemic, the President said.

Addressing the nation on Sunday, 19th April, 2020, the President stated that, “The Minister for Finance, together with his counterpart in South Africa, as co-Chairs of the Committee of African Finance Ministers, have been leading a Pan-African effort to bring debt relief to the continent in these difficult times.”

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“Last Friday, they achieved a nine-month debt standstill from the World Bank for all qualifying members of the International Development Association (IDA), starting from 1st May, 2020, totalling some forty-four billion United States dollars ($44 billion) for the countries of Africa,” he added.

He further noted that, “In the case of Ghana, this amounts to a freeze in principal and interest payments for the year, amounting to some five hundred million United States dollars ($500 million).”

The President also stated that this will create greater fiscal space to help make the Ghanaian economy much more resilient.

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Whiles commending Ken Ofori-Atta, who is leading the continent’s debt relief efforts for his hard work and outstanding leadership, the President urged him ‘to leave no stone unturned to achieve an even greater and comprehensive debt relief programme for Africa.’

This was the President’s seventh national address since the outbreak of the pandemic in Ghana.

Other Financial Interventions

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The Government has also received the three billion Ghana cedis credit and stimulus package from commercial banks, under the auspices of the Ghana Association of Bankers, with support from the Bank of Ghana, to revitalise Ghanaian industries.

The stimulus package is to offer financial relief to especially the pharmaceutical companies.

Additionally, “the one billion United States-dollar- Rapid Credit Facility, secured from the International Monetary Fund, without any pre-condition, and approved by Parliament, would be used to help close the financial gap created by the COVID-19 pandemic,” the President said.

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So far, the Government has allocated a GHS1.2 billion, under the Coronavirus Alleviation Programme, to support households and businesses.

Out of that amount, GHS280 million would be used to provide food for the vulnerable and free water for all Ghanaians in April, May and June.

GHS323 million is being used to motivate frontline health workers leading the fight against COVID-19, while GHS600 million assistance package is for micro, small and medium-scale businesses.

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Also, the Government is absorbing the full electricity bills of one million active lifeline customers and granting 50 per cent subsidy to the other categories of power consumers at a total cost of one billion Ghana cedis.

Partial lockdown lifted

The President has lifted the ban on the three-week partial lock-down of COVID-19 hotspots areas – Accra, Tema, Kasoa and Greater Kumasi.

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He however stated that the other restrictions, including the ban on public gatherings, public funerals, indefinite closure of schools, closure of the country’s borders are still in force.

He urged the general public to continue observing the social distancing rules, practicing regular washing of hands and the regular use of hand sanitizers. Currently, Ghana has recorded 1,042 cases, with nine deaths and 99 recoveries.

 

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Source: Citibusinessnews.com

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Governance

Ghana’s 2024 Presidential Elections: A Clash of Titans Between the NPP and NDC

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With just a few hours left for Ghana’s 2024 presidential and parliamentary elections, the political atmosphere is charged with anticipation. This election is set to be a defining moment for the nation for various reasons. One important thing to note is that it marks the eighth presidential race since the country’s return to multiparty democracy in 1992.

The two leading contenders, representing the country’s most dominant political parties—the New Patriotic Party (NPP) and the National Democratic Congress (NDC)— have just concluded their final rallies, which interestingly, were held just a few kilometers away from each other in Accra.

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NPP’s Candidate: Dr. Mahamudu Bawumia
Current Vice President Dr. Mahamudu Bawumia is the presidential candidate for the ruling NPP. As the first Muslim to lead the party into a presidential race, Dr. Bawumia’s candidacy represents a significant milestone for the NPP. As a technocrat and the leader of the economic management team, he has been a central figure in President Nana Akufo-Addo’s administration. He spearheaded initiatives like the Ghana Card, the digitalization of public services, and mobile money interoperability. All these achievements have earned him the nickname, “Alhaji digital.”

Throughout Dr Bawumia’s campaign, he has emphasized economic transformation through technology and industrialization. Another key message in his campaign is the success of the Free SHS scheme which was the party’s flagship policy in the last elections held in 2020. Dr Bawumia believes “It is possible” to turn the fortunes of Ghana around. However, his campaign has faced significant challenges tied to the current administration’s economic record, including high inflation, rising debt levels, and a controversial bailout from the International Monetary Fund (IMF).

Dr Bawumia and his running mate Dr Matthew Opoku Prempeh

Dr Bawumia in consultation with the leaders of the NPP chose former Energy Minister, Dr. Matthew Opoku Prempeh (NAPO) to be his running mate. This alliance with NAPO, a son of Manhyia has been described by many as a strategic one which is aimed at cementing the already existing bond between the NPP and the people of the Ashanti Region which has been described as the party’s stronghold for many years.

NDC’s Candidate: John Dramani Mahama
On the other side of the political coin is former President John Dramani Mahama, representing the NDC. This is his third presidential campaign, and he remains a polarizing yet formidable figure in Ghanaian politics. Mahama’s campaign is largely focused on what he describes as rescuing the country from the mismanagement of the NPP government. His flagship policies are the 24Hour Economy which he says is aimed at reducing youth unemployment and Operation Recover All Loot (ORAL) where he promises to prosecute all state officials who have misappropriated state funds.

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The former president is banking on his experience, emphasizing policies aimed at economic recovery, infrastructure development, and social welfare. His previous tenure as president (2012–2016) is both his greatest asset and liability; while he oversaw significant infrastructural projects, critics often highlight issues of corruption and inefficiency during his administration. This has become an albatross round his neck throughout his campaign, with many questioning his candidature. However, Mahama has pledged to learn from past mistakes and promises a more inclusive and transparent government if elected.

Former President John Mahama and his running mate Prof. Jane Naana Opoku Agyemang

John Mahama also made a strategic move by choosing Professor Jane Naana Opoku Agyemang as his running mate. Should the NDC win the elections, she would become the first female vice president of Ghana. This bold move was welcomed by all especially women’s groups who have always called for the inclusion of more women is governance and leadership positions.

The Road Ahead
With these major parties finally concluding their campaigns with massive rallies which drew massive crowds at their respective venues, it is difficult to say the winner of 7th December’s elections is glaring. For the NPP, who seek to “break the 8” with their first Northern leader and be elected for a 3rd consecutive term, this election is a very crucial one.

For the NDC, who seek former President Mahama’s reelection and setting a record for having Ghana’s first female president, this election represents a whirlwind of possibilities.
In all this, one thing remains clear, Ghanaians will not only vote based on party loyalty but also on who they believe can best address their immediate concerns. With the stakes so high, the 2024 presidential elections promise to be one of the most consequential in Ghana’s democratic history.

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The countdown has begun, and all eyes are on December 7, 2024 for the presidential elections. Will Ghana chart a new course with Dr. Bawumia or return to familiar territory with Mahama? Only time will tell.

Written by: Maame Adwoa A. Mensah

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