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Government Considering $1.7 Billion Support from Afreximbank – Ministry of Finance

Government says it is considering a $1.7billion support from Afreximbank but provides no additional information, as Minister of State at the Finance Ministry, Abena Osei-Asare leads a delegation to attend then Bank's AGM

The Government of Ghana intends to hold discussions with the Africa Export-Import Bank (Afreximbank) to secure a $1.706 billion support package, according to a statement issued by the Ministry of Finance. The statement did not specify the progress of these discussions or the intended use of the funds.

This announcement comes as Ghana participates in Afreximbank’s Annual General Meeting (AGM), themed “Owning Our Destiny: Economic Prosperity on the Platform of Global Africa.” The event will gather over a thousand delegates, including African and Caribbean leaders, senior government officials, policymakers, corporate and business leaders, bankers, entrepreneurs, academics, and other thought leaders.

In July 2022, Ghana secured a $750 million loan from Afreximbank when the country was shut out of global capital markets due to soaring yields on its international bonds, downgraded credit ratings, and a collapsing currency. This loan was intended for various infrastructure projects across the country, many of which are still ongoing or have been halted. Despite the influx of funds, the cedi continued to depreciate at an alarming rate.

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The Finance Ministry statement noted that Afreximbank’s current support to Ghana’s public and private sectors stands at $1.761 billion, nearly equal to the $1.706 billion currently “under consideration”.

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During his monthly press briefing on May 24, Finance Minister Dr. Mohammed Amin Adam mentioned a list of expected inflows totaling $2.3 billion that the government anticipates receiving between now and the end of the year. Notably, this list did not include any facility from Afreximbank, indicating that this new support may still be in the early stages of consideration.”

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Abena Osei-Asare, Minister of State at the Finance Ministry, is leading Ghana’s delegation to the 2024 Afreximbank AGM and the 3rd African-Caribbean Trade and Investment Forum (ACTIF2024) in Nassau, Bahamas, from June 12th to 15th. She will deliver the opening remarks at the ceremony and a plenary session themed “Economic Transformation for Global Africa in a Polycrisis World.” Additionally, she will participate in a high-level policy dialogue on “An Emergent Global Africa: A Platform for Sustainable Economic Transformation.”

The delegation will attend statutory meetings, bilateral discussions, seminars, and plenaries, including the AfriCaribbean Trade and Investment Forum. It is anticipated that the Minister of State will use these meetings to advance discussions on the $1.706 billion support and potentially provide additional updates.

Any dollar inflow into Ghana is of significant importance due to the depreciation of the cedi and the relatively low foreign currency reserves at the Bank of Ghana (BoG). Consequently, the government is likely to continue seeking dollar-denominated credit facilities to bolster the country’s international reserves.

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