The World Bank has noted that the government’s main source of financing is domestic treasury bills and multilateral and bilateral partners.

This is because the country was shut out of the international market due to its high debt levels.

“Because of Ghana’s lack of international market access, financing during 2024-26 is expected to be limited to multilateral and bilateral partners and domestic Treasury bills,” the 8th Ghana Economic Update by the World Bank said.

The report added that from 2023 to 2026, the World Bank is expected to disburse about US$3 billion, including about US$1.5 billion for project loans, US$1.15 billion for budget support, and US$400 million for other projects.

“Over the same period, the African Development Bank is assumed to disburse US$338 million, of which US$200 million is project loans and grants and US$103 is budget support during 2023-24. On the domestic side, a reintroduction of medium and long-term domestic debt issuance is foreseen in 2025 as the domestic bond market is restored,” it added.

According to the institution, Ghana’s domestic revenue mobilization has substantially dropped in recent years, with revenue collection as a share of GDP declining from 15.7 percent in 2017 to 13 percent in 2021.

It said revenue targets were missed by more than 7 percent on average during that period, affecting budget credibility.

The World Bank also added that “While greater efforts were made in 2023 and 2024, bold tax policy measures and tax administration reforms are necessary to improve fiscal position and budget credibility. The adoption of an ambitious Medium Term Revenue Strategy (MTRS) for 2024-2027 lays a foundation for even more robust reforms towards fiscal stability and economic prosperity.”

SSD/NOQ