The International Development Association (IDA) has provided Ghana with $150 million in additional financing to support the expansion of social safety nets and promote income-generating opportunities for the poor. This funding aims to enhance Ghana’s largest social assistance program, the Ghana School Feeding Programme, which currently benefits 3.6 million children in public kindergartens and primary schools across the country.
Boosting Social Assistance Programs
The Government of Ghana, in alignment with its commitments to the International Monetary Fund (IMF), recognizes the importance of safeguarding and increasing social spending to protect vulnerable individuals during times of fiscal challenges. The social safety net programs supported by this additional financing play a crucial role in ensuring the well-being of the poor, improving food security, and fostering productivity and human capital development. Although recent fiscal constraints have caused delays in the disbursement of payments for government-funded social protection programs, the World Bank remains committed to supporting Ghana during these challenging times.
Pierre Laporte, the World Bank Country Director for Ghana, Liberia, and Sierra Leone, expressed satisfaction in providing this additional financing to enable Ghana to uphold its commitments to social spending and sustain critical social assistance initiatives. Laporte emphasized that the funding aligns with Ghana’s development vision outlined in the Coordinated Programme of Economic and Social Development Policies (2017–2024) and the government’s vision for the social protection sector, which focuses on productive and gainful employment for the poor.
Strengthening Social Protection and Promoting Productivity
Building upon previous World Bank-funded projects, the Ghana Productive Safety Net Project 2 (GPSNP 2) aims to strengthen Ghana’s social protection system, enhance transparency, and improve program efficiency to maximize its impact. Moreover, the project will offer technical assistance to identify sustainable sources of social protection financing.
In addition to supporting the Livelihood Empowerment Against Poverty (LEAP) and Ghana School Feeding Programme, the GPSNP 2 will provide employment opportunities for approximately 32,000 caterers and cooks while ensuring daily meals for school-going children. The project will also prioritize increasing the transfer value to the targeted 350,000 beneficiaries under LEAP, addressing the erosion caused by inflation over the past year. It will expand the Productive Inclusion Intervention to benefit 60,000 beneficiaries, compared to the current 25,000, and extend access to the Labour-Intensive Public Works short-term employment program to 90,000 beneficiaries, up from 60,000. Additionally, the project will adjust productive grants to align with inflation, leading to increased incomes, savings, and investments in essential items and productive assets for the poor.
Christabel E. Dadzie, Senior Social Safety and Jobs Specialist and Task Team Leader for GPSNP 2, emphasized the timeliness of the project, particularly in supporting vulnerable individuals during national and global shocks. Dadzie highlighted the project’s commitment to maintaining critical social protection programs, providing support to the urban poor, and offering intentional assistance to vulnerable groups, including persons with disabilities.
The additional financing from the IDA demonstrates the World Bank’s dedication to supporting Ghana’s development efforts. Established in 1960, the IDA plays a significant role in providing grants and low- to zero-interest loans to the world’s poorest countries, including 39 African nations. With a focus on economic growth, poverty reduction, and improving the lives of the poor, the IDA has positively impacted 1.6 billion people globally.
