Fears as approved presidential $100m not available in Ghana for COVID-19
…Minister anchors hope on W’Bank, IMF funding as case rises to 7
Strong indications emerged Wednesday in Ghana suggesting that contrary to the presidential announcement that $100m has been earmarked for the tracking of all precautionary and management processes for the COVID-19 pandemic, the said fund may not have existed after all.
Business Hilights Ghana Bureau chief reports that the Ghanaian government through the Ministry of Finance is currently scrambling for fund at a time confirmed infection cases have risen to seven, thus becoming amongst the highest hit sub Saharan African nation for now.
Recall that Ghanaian President, Nana Adoo Danquah Akufo-Addo in an address to the nation Wednesday March 11, 2020 revealed that he has directed the Minister of Finance, Mr. Ken Ofori-Atta to make available the cedi equivalent of $100 million to enhance Ghana’s coronavirus (COVID-19) preparedness and response plan.
President Akufo-Addo had said “The Minister of Finance has made available the cedi equivalent of $100 million to enhance our coronavirus preparedness and response plan that is to fund infrastructure, purchase materials and equipment and public education.”
However, whereas the announcement was greeted with applause, hope and excitement, the current reality as at Tuesday was that the ministry is yet to lay hands on any fund for fighting COVID-19 in Ghana.
A clearer picture on the COVID-19 funding crisis in Ghana was observed from the way and manner the Minister had presented his address before the Parliament, saying that the money isn’t available and the government was now in talks with two Bretton Woods Institutions – the World Bank and International Monetary Fund (IMF) to try and access a total of $22 billion the two international finance institutions are making available to its member-countries to fight the disease.
At the beginning of his statement in Parliament to update the House on the fiscal implications of the Coronavirus (COVID-19), the minister first revealed that in line with the President’s directive, “We are currently in discussion with the World Bank to tap into the $12 billion Bank fast-track COVID-19 facility to help close the financing gap. In addition we are in discussion with the IMF to access part of a $10 billion facility made available by the IMF to address the corona virus through the rapid credit facility.”
Ofori-Atta also told the lawmakers that government is discussing with the International Monetary Fund (IMF) to access part of a $10 billion facility made available by the IMF to address Corona through the Rapid Credit Facility.
The Minister said Ghana was also discussing with other multilateral and bilateral partners on potential assistance to close the financing gap while domestic efforts are on high gear to raise the announced funding.
On the impacts of the pandemic to the economy, the Minister told the lawmakers that preliminary analysis by the Ministry shows that the Coronavirus pandemic would impact negatively on the country’s petroleum receipts due to the collapse of international oil prices.
He added that the disease was likely to impact adversely on the nation’s custom and other receipts, increase expenditures on health as well as financing conditions on the fiscal front, saying “More generally, it is affecting tourism, travel and conferences, Foreign Direct Investment (FDI), international trade, food and nutrition, and poverty reduction”.
According to him, government was putting in place measures to close a possible financing gap in the 2020 Budget that could result from the impact of the coronavirus.
