Policy think tank IMANI Africa has questioned the Ghanaian government’s communication around a recently approved $360 million World Bank loan, warning that ambiguous framing risks eroding public trust.
Parliament passed the facility this month under the Second Resilient Recovery Development Policy Financing programme, with officials initially describing it as “budgetary support” to clear road contractor arrears.
IMANI’s critique centers on discrepancies in the loan’s stated purpose. While Cabinet reportedly approved funds exclusively for contractor debts, documents presented to Parliament included broader government payments. The government later clarified the facility is a loan solely for arrears after parliamentary scrutiny, but IMANI argues the delayed transparency fuels perceptions of “backdoor liabilities.”
“The core concern is language: referring to a loan as ‘financing’ without stating it adds to public debt invites suspicion,” IMANI stated, noting Ghana’s history of hidden debts. The Minority in Parliament echoed these concerns, highlighting inconsistencies between executive and legislative briefings.
Finance Ministry officials maintain the loan aligns with fiscal recovery goals and will be transparently deployed. Yet IMANI stresses that post-clarification “damage control” cannot undo the reputational impact, urging unambiguous terminology in future borrowing.
The controversy unfolds amid Ghana’s ongoing IMF-backed economic reforms, where debt transparency remains pivotal to investor confidence. The ruling NDC government faces renewed pressure to reconcile development financing with accountable communication.