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African Development Bank approves $111.3m loan, grant for Ghana

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The African Development Bank (AfDB) Group has approved an amount of $111.3 million to finance a poverty reduction and business environment programme in Ghana.

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

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One comment

  1. This is interesting as president Mills keep borrowing at the back of poor Ghanaians and when will it ever end. This governemnt will continue to borrow for projects which Ghanaians will never see the beginning or the end. Generations will be carring these loans forever after this government leaves office. President Mills remember Greece, Ireland, and some other countries gone broke, please don’t put Ghanaians into debts.