Ghana Secures $500 Million Investment from BADEA to Fuel Economic transformation & 24-Hour Economy Initiative
Ghana has entered a landmark partnership with the Arab Bank for Economic Development in Africa (BADEA), securing up to $500 million in funding to modernize key sectors, bolster economic competitiveness, and drive job creation, particularly for youth and women. This agreement, formalized through a Memorandum of Understanding (MoU), represents a pivotal moment in Ghana’s ambitious drive towards inclusive growth and economic diversification, and signals a strengthening of Arab-african economic cooperation.
A Strategic Investment for Lasting Growth
The investment comes at a critical juncture for Ghana, as the nation actively seeks to reduce its reliance on imports and unlock the potential of its burgeoning population. The partnership directly supports the government’s recently launched 24-Hour Economy initiative - a bold plan to extend business operating hours and significantly enhance productivity across key industries. This isn’t simply about keeping lights on; it’s a strategic move to fundamentally reshape Ghana’s economic landscape.
“This mou opens new doors for the Ghanaian entrepreneur who wants to expand production, the farmer looking to grow her shop, and the young innovator with an idea that can change our future,” stated Mr. Goosie Tanoh, Presidential Advisor on the 24-Hour Program. This sentiment underscores the initiative’s focus on empowering local actors - entrepreneurs, farmers, small businesses, and innovators – who are the engines of Ghana’s transformation.
BADEA’s Commitment to Ghana’s vision
BADEA’s commitment extends beyond mere financial provision. Mr. Abdullah Almusaibeeh,President of BADEA,lauded Ghana’s “bold vision for inclusive and sustainable growth,” emphasizing that the MoU marks “a new phase in Arab-African cooperation” and highlights the meaningful potential for collaborative development.
The comprehensive agreement encompasses several key areas of support:
* direct Financing: An initial tranche of $60 million will be channeled through the Development Bank of Ghana (DBG) to provide crucial capital to Small and Medium-sized Enterprises (SMEs). This funding will prioritize sectors with high export potential, focusing on boosting productivity and creating sustainable employment opportunities.
* Technical Assistance: BADEA will provide vital technical support to Ghanaian government agencies and businesses, strengthening their capacity to effectively implement programs and maximize the impact of the investment.
* Trade Finance facility: A dedicated trade finance facility will be established to bolster food security and promote balanced trade, ensuring a stable and reliable supply chain.
* Affordable Financing for SMEs & Cooperatives: Recognizing the challenges faced by SMEs in accessing affordable capital, BADEA will offer tailored loan products to facilitate growth and expansion.
* public-Private Partnerships (PPPs): The agreement actively promotes ppps to accelerate investment in critical infrastructure – including roads, energy, and logistics – which are basic to enhancing competitiveness and driving industrial growth.
Supporting Ghana’s Export Drive & Financial Stability
The Bank of Ghana (BoG) has pledged its full support to the partnership,with Second Deputy Governor Mrs.Matilda Asante-asiedu assuring stakeholders that the Central Bank will “continue to ensure a stable financial environment that supports this initiative.” this commitment is crucial for fostering investor confidence and ensuring the long-term sustainability of the programme.
Analysts highlight the timeliness of this agreement, noting that it provides a much-needed boost to Ghana’s export drive and empowers SMEs to compete effectively in regional and global markets. By unlocking affordable and patient capital, BADEA’s investment addresses a critical constraint faced by many Ghanaian businesses – high borrowing costs within the local financial system.
A Model for African Development & Strengthened Arab-African Ties
This MoU is not only a significant milestone for Ghana but also serves as a potential model for othre African nations seeking strategic partnerships to accelerate their development. It underscores the growing importance of South-South cooperation and strengthens economic ties between Africa and the Arab world.
The partnership with BADEA represents a powerful endorsement of Ghana’s economic potential and a clear signal of confidence in the nation’s future. By fostering innovation, supporting entrepreneurship, and investing in critical infrastructure, this agreement lays the foundation for a more prosperous and sustainable future for Ghana and its people.
About BADEA:
The Arab Bank for Economic Development in Africa (BADEA) is a multilateral development bank owned by member states of the Arab League. It provides financing and technical assistance to promote economic, social, and infrastructural development in Africa.
About the 24-Hour Economy Initiative:
The 24-Hour Economy initiative is a government-led program in Ghana designed to extend business operating hours, boost productivity, create jobs, and transform the nation into a globally competitive economy
