Second Macroeconomic Stability for competitiveness and Growth

closed

Closed

This program document proposes a SDR 142.4 million (US$200 million equivalent) International Development Association (IDA) credit to the Republic of Ghana for the Second Macroeconomic Stability for Competitiveness and Growth (MSCG‐II) Development Policy Financing (DPF) operation. The operation is the second in a programmatic series of two single‐tranche operations to support the implementation of Ghana’s second Shared Growth and Development Agenda (GSGDA‐II) over the 2014‐2017 period. The original programmatic series did not include any actions covering the real sector, although it had emerged that the lack of reliable and competitively priced energy were major constraints to competitiveness and growth. This operation has therefore been modified to include actions for the energy sector. In addition, since the Government is working to establish a new medium‐term strategy in 2018, and since the implementation of the originally proposed third DPF cannot be completed within the current GSGDA‐II period, this DPF operation will be the last of the series. A new program aligned with the priorities in the Government’s new medium term strategy will be discussed in the context of the World Bank Group’s (WBG) new Country Partnership Framework (2018-2023) expected to be completed in 2018. As indicated in the attached Letter of Development Policy, the Government remains committed to implementing irreversible fiscal measures to contain its financing needs, stabilize public debt and avoid arrears accumulation. Ghana’s current primary development challenges are characterized by large fiscal and current account deficits, inefficiency in the management and use of public funds, slow pace of job creation, non-competitiveness of the private sector, and significant infrastructure challenges, in the energy, water and transport sectors. To support the Government in achieving the overarching objective of the GSGDA‐II, the operation focuses on three strategic pillars: (i) strengthening institutions for more predictable fiscal outcomes; (ii) improving competitiveness for job creation; and (iii) protecting the poor and vulnerable.

FY17 - Energy and Extractives,FY17 - Industry, Trade and Services,FY17 - Public Administration,FY17 - Social Protection

World Bank Group

Project

Water Supply and Storage, Government