According to the AfDB, $70 million of the total amount is a loan and the remaining $41.3 million of the amount is a grant.
The Board of Directors of the African Development Fund (ADF), a constituent of the AfDB Group, took the decision today July 13, 2011 in Tunis, Tunisia.
“The Board of Directors of the African Development Fund (ADF) today in Tunis approved a loan of $70 million and a grant of $41.3 million to finance The Poverty Reduction and Business Environment Support Programme (PRBESP) in Ghana”, the Group said in a statement.
The ADF loan carries a zero interest rate, a 0.75% service charge par annum and a repayment period of 50 years including a grace period of 10 years.
It indicated that the objective of the programme is to create accelerated, broad-based economic growth and reduce poverty through an improved business enabling environment for competitiveness of the private sector and enhanced public finance management (PFM) in Ghana.
The programme is designed to be implemented in twenty six months and would be completed by December 2013, the AfDB noted.
By Ekow Quandzie