Ghana has secured a transformative financing agreement with the Arab Bank for Economic Development in Africa (BADEA) that could unlock up to $500 million in support for the country’s ambitious 24-Hour Economy initiative, marking a significant step toward reducing dependence on traditional commodity exports.
The memorandum of understanding, signed at Bank of Ghana headquarters in Accra, establishes an initial $60 million funding tranche that will flow through the Development Bank Ghana to small and medium-sized enterprises, with additional financial institutions expected to participate in subsequent phases.
The agreement represents one of the most concrete developments in Ghana’s quest to mobilize over $4 billion across five years for its 24-Hour Economy Plus programme, an initiative designed to expand productive capacity beyond daylight hours while strengthening export-oriented value chains.
“This partnership transcends traditional commodity financing and signals BADEA’s commitment to supporting Ghana’s economic transformation agenda,” said BADEA President Abdullah KH Almusaibeeh during the signing ceremony. The bank’s endorsement provides crucial international validation for Ghana’s diversification strategy at a time when many African economies remain heavily dependent on raw material exports.
Bank of Ghana Second Deputy Governor Matilda Asante-Asiedu, representing Governor Johnson Asiama, emphasized the critical importance of accessible capital for Ghana’s economic restructuring efforts. The partnership addresses a longstanding challenge facing Ghanaian SMEs, which have historically struggled to access affordable long-term financing necessary for expansion and modernization.
Under the facility’s terms, qualifying businesses will access concessional loans at interest rates below 12 percent with repayment periods extending five to seven years. The package includes an equity component specifically targeting youth and women-led enterprises, supported by credit guarantees and insurance mechanisms developed in collaboration with Ghana’s risk-sharing agency GIRSAL.
Presidential Advisor on the 24-Hour Economy Goosie Tanoh described the arrangement as forming part of “Fund24,” the financing pillar underpinning the broader economic initiative. He stressed that funds would be channeled through private sector institutions rather than government accounts, a structure designed to reassure international investors about prudent financial management.
The timing of this agreement appears strategic, coming as Ghana continues recovering from recent economic challenges while positioning itself as an attractive destination for development financing. The country has been actively courting international development partners to support its economic diversification agenda beyond traditional gold, cocoa, and oil exports.
Programme officials project the facility could ultimately mobilize more than $18 billion in SME financing by 2030, while strengthening agro-processing and logistics value chains across Ghana’s economic landscape. The initiative aims to create a pipeline of investment-ready enterprises capable of competing in regional and global markets.
The BADEA partnership complements an earlier agreement with the African Development Bank and signals growing international confidence in Ghana’s economic reform agenda. For Ghana’s government, the deal provides both immediate financial resources and important credibility as it seeks to attract additional development partners.
The 24-Hour Economy concept, initially championed during Ghana’s recent political transition, envisions extending productive economic activity beyond traditional business hours to maximize output and employment generation. The programme targets sectors including manufacturing, agro-processing, and services that can operate effectively during extended hours.
This financing arrangement could prove pivotal in demonstrating the viability of Ghana’s economic transformation strategy, particularly as other African nations observe the outcomes of innovative approaches to development financing and economic diversification.