AfDB promises US$500m to Ghana

  Mr. Akinwumi Adesina

Mr. Akinwumi Adesina

The African Development Bank (AfDB) has promised to make US$500 million available to the government over a three year period through the commercial window of the bank, Mr. Akinwumi Adesina, President of the Bank has said.

“With the rapid economic growth that we have seen, and with the macroeconomic stabilisation that Ghana is having, and the Minister of Finance is doing an incredible job, we will we work with the government to move Ghana towards the commercial window of the bank.

“What this means is that Ghana will be able to access $500 million a year, over a three year period, for developmental programmes. I just want to assure you that we will provide the maximum amount support for you and your government to succeed. You have put together an excellent team, a first rate team, and I have every confidence that it will succeed,” he said

Mr. Adesina said this when he called on President Nana Addo Dankwa Akufo-Addo at the Flagstaff House in Accra yesterday.

He commended the government for its significant strides in the management of the economy, barely seven months in office and congratulated President Akufo-Addo for the clarity of his vision and direction of the country’s economy.

“I must commend you for the growth that I am beginning to see. The economy is going to grow this year at 6.3 per cent, and next year at 7.4per cent. The medium term outlook is great, at about 9.2 per cent.

“The results are quite evident. If you look at the inflationary rate, it has gone down to 12.1%. The debt stock in relation to the size of the GDP has also gone down to 67%, from what you inherited. These are all great signs of your stewardship in the few months that you have taken over.

This kind of growth trajectory is exactly what is needed for a Ghana beyond aid,” he said.

Ghana and the AfDB, Mr. Adesina noted, had been in marriage of development since 1973, and indicated that the bank had made investments of $3.2 billion.

He said the bank currently had investments of $950 million in different sectors – infrastructure, energy, agriculture, and private sector.

Outlining some of investments undertaken by the Bank in Ghana, the AfDB President noted that the Fufluso-Sawla road project, which won the African Development impact award, and the Northern Rural Development Project (NRDP) were examples of initiatives that have impacted the lives of hundreds of thousands of Ghanaians.

On NRDP, Mr. Adesina noted that the project had helped to develop almost 4,000 hectares of irrigated land, led to the construction of warehouses and a significant increase in yields of staples such as maize and soya beans.

The AfDB President also expressed his delight at the stability the Akufo-Addo government had achieved in the energy sector, stressing that “we will continue to be supportive especially on renewable energy in Takoradi TII.”

Touching on cocoa, Mr. Adesina described the leadership of President Akufo-Addo and that of President Ouattara of Cote d’Ivoire as crucial.

“As both you mentioned to me, it does not make sense for Ghana and Cote d’Ivoire to produce 64% of the world’s cocoa, and, yet, be at the short end of the stick of not being able to control the market. So you have given us specific instructions of what you wanted and we’ve moved on that,”

“We (AfDB) have received a request for $1.2 billion from Ghana’s Minister of Agriculture and from the Cocoa and Coffee Board of Cote d’Ivoire, and we will be looking at building warehouses so you can store the cocoa and not have to sell immediately after harvest,” he said.

By Yaw Kyei

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