|Approval Date||16 Dec 2016|
|Signature Date||10 Feb 2017|
|Planned Completion Date||30 Sep 2017|
|Last Disbursement Planned Date||31 Dec 2017|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||15124|
The proposed intervention is an ADF loan of thirty-five million Units of Account (UA 35 million) to the Republic of Ghana to finance the second phase of the Public Financial Management and Private Sector Competitiveness Support Programme (PFMPSCSP II). This will allow for the strengthening of fiscal consolidation, deepening of PFM reforms, and improving the efficiency and competitiveness of the private sector. Like the first operation, PFMPSCSP II will be a single tranche. Consistent with the Bank’s Policy on Program Based Operations (PBOs), the disbursement of the proceeds of the first phase in the programmatic series (UA40.00 million) was effected against the achievement of a set of prior actions for 2015. In addition, the PFMPSCSP included indicative triggers for the second phase (PFMPSCSP II) in 2016, thereby providing predictable financing for the Government of Ghana (GOG) and supporting a medium-term reform platform for policy dialogue. The PFMPSCSP II has the same Components as Phase I of the operation, namely (i) Strengthening Fiscal Consolidation; (ii) Deepening PFM Reforms; and (iii) Enhancing Efficiency and Competitiveness of the Private Sector. These three components are complementary and mutually reinforcing in that fiscal consolidation will contribute to reduced Government indebtedness and lower cost of money; while PFM reforms will lead to efficiency in government operations and contribute to fiscal consolidation.
The goal of the PFMPSCSP is to support the government’s medium-term development agenda of building a strong foundation for inclusive and self-reliant economic growth. Consistent with this goal, the operational objective of the 2016 program is to further strengthen fiscal consolidation and PFM reforms in order to restore macroeconomic stability, and enhance private sector-led competitiveness through improved access to electricity and SMEs’ access to finance.
The beneficiaries of the program remain the same as in PFMPSCSP. The direct beneficiaries are key public institutions responsible for PFM in Ghana, and agencies responsible for the delivery of electricity. The Ghanaian people will benefit from the expanded fiscal space that is being created by the fiscal consolidation reforms, as more resources would be available to fund pro-poor expenditures and basic social services. The private sector too will benefit from reliable and affordable electricity, improved access to finance, especially by SMEs including women-owned enterprises, as well as from more transparent and efficient PFM system, especially relating to procurement practices.
African Development Fund
MINISTRY OF FINANCE AND ECONOMIC PLANNING
Ministry of Finance
|Last Update||01 Feb 2023|
|Name||LUMBILA Kevin Numbi|