AfDB to strengthen Ghana’s domestic revenue mobilisation with $7.4 million project

Multilateral institution, the African Development Bank (AfDB) is seeking to strengthen Ghana’s domestic revenue mobilisation with the launch of the $7.4 million Institutional Support Project.

The launch of the Institutional Support Project follows the signing of grant and loan agreements with the Finance Ministry and the first disbursement of the project funds.

The funds provided under the project according to the AfDB, will help provide technical assistance and capacity building to improve efficiency in non-tax revenue collection and bolster debt and cash management reforms.

Additionally, it will help deepen financial sector reforms and support the country’s capital market development.

The Institutional Support Project complements current efforts by the government to strengthen domestic resource mobilisation in the country, following the challenges in revenue mobilization due to supply disruptions caused by the Covid-19 pandemic.

Speaking at the launch of the project, the African Development Bank country manager for Ghana, Eyerusalem Fasika, emphasised the importance of the project to Ghana’s medium-term development objectives and the Finance Ministry’s 2018-2021 strategic plan.

Further noting that the project aligns with the Bank’s Country Strategy Paper (2019-2023) as it provides the foundation for additional fiscal space to support investments in infrastructure to bolster industrialization, job creation and spur private sector activity and regional integration.

Emmanuel Fordjour, Manager at the Resource Mobilisation and Economic Relations Division of the Finance Ministry, at the launch, thanked the African Development Bank for supporting the government.

lso speaking at the launch was Director-General of the Securities and Exchange Commission (SEC), Daniel Ogbarmey Tetteh, who commended the AfDB for supporting Ghana’s transition to risk-based supervision for its capital markets and the automation of a regulatory compliance monitoring system for the Commission.

The project is expected to support the country to transition from aid dependency to prosperity and self-reliance.

The AfDB welcomed the country’s ambition to become a regional financial services hub, hence the project is also expected to support the establishment of an international financial services center in the country’s capital, Accra.