The Ministry of Finance has disclosed that Ghana stands to lose a significant amount of US$3.8 billion in World Bank financing over the next five to six years if President Nana Akufo-Addo approves the LGBTQ+ bill that has been passed by Parliament.
Specifically, for the year 2024, Ghana is projected to lose US$600 million in budget support and an additional US$250 million for the Financial Stability Fund. This substantial loss of funding will undoubtedly have a detrimental effect on Ghana’s foreign exchange reserves and exchange rate stability, as these inflows were anticipated to bolster the country’s reserve position.
It is imperative for all stakeholders to carefully consider the potential consequences of this decision and work towards finding a solution that will not only protect Ghana’s financial interests but also uphold its commitment to human rights and equality.
On the 28th of February, 2024, the Parliament of Ghana passed the Proper Human Sexual Rights and Ghanaian Family Values (“Anti-LGBTQ”) Bill. The Bill is yet to be forwarded to H. E. the President for assent seeks to among others prescribe a maximum of five years for anyone caught practising or endorsing LGBTQ+ activities.
The passage of the Bill has triggered reactions from some of Ghana’s Development Partners, International Financial Institutions, the US Embassy in Ghana and CSOs in the country.
The development led to the Minister of Finance convening an Emergency Meeting with Chief Director and Director of the Ministry, the Governor and 1st Deputy Governor at BoG and the Commissioner-General of GRA to ascertain the immediate impact of the passage of the Bill on the implementation of the 2024 Budget.
At the end of the deliberations, the meedting recommended the following
At the Presidency level, We recommend;
a. a structured engagement with local conservative forces such as religious bodies
and faith-based organizations to communicate the economic implications of the
passage of the “Anti LGBTQ” Bill and to build a stronger coalition and a framework
for supporting key development initiative that are likely to be affected;
b. an effective engagement with conservative countries, including the Arab countries
and China. This could help trigger resources to fill in the potential financing gaps
to be created; and
c. H.E. the President may have to defer assenting to the Bill until the court rules on
the legal issues tabled by key national stakeholders (CSOs and CHRAJ).
ii. At the MOF Level,
a. The Ministry will continue to engage with the IMF on the alternative credible
sources of funding that will plug the financing gap;
b. GRA to embark on a vigorous revenue mobilisation drive focusing on
implementation of approved measures as well as compliance;
