Ghana is set to receive about $1.2billion in credit facilities from the World Bank Group within the next three years.
The facility forms part of the World Bank’s $75 billion development assistance facility to countries across the globe. Ghana’s allocation is calculated out of the 50 billion dollars allocation to Africa.
When approved, the $1.2 billion dollars facility will be disbursed over a three year period of $400million in each tranche. Ghana has a four year grace period before repayment starts at an interest rate of 2.5% payable within a twenty-five year period.
The Chief Economist for the Africa Region of the World Bank, Albert G. Zeufack, noted that the rate is favourable compared to the about nine percent interest on the country’s Eurobonds. He could, however, not disclose the respective areas of channeling the credit facility to develop in the Ghanaian economy. He explained that the support is to cushion countries against the adverse economic impacts following a sluggish economic growth in 2016.
Mr Zeufack, who was interacting with the media, as part of activities of his three-day visit, said it was time for Africa to seize the opportunities available in emerging markets such as those in East Asia.
Diversifying markets and exports
According to him, there are enormous potential for Africa to develop by diversifying its markets and exports.
He said while it was important for African countries in general and Ghana in particular to diversify their economies from the exports of mainly raw materials to value added products, it was even more important for them to diversify their markets.
He noted that after adding value, Africa must look for a diversified market for its exports aside the traditional markets of US and other places to places like East Asia.
“The largest consumption market and the fastest growing consumption market is actually in East Asia, it’s not in the US, it’s not in Europe, it’s in East Asia,” he said.
He said the market for chocolate in East Asia for instance, for 2018, was more than $16 billion
He said if Ghana, being one of the largest cocoa producers, was able to attract investment to manufacture chocolate and other cocoa products, it would be able to create jobs in Ghana and export chocolate to East Asia.
“This is what La Cote d’Ivoire is starting to do, and that is what Africa must emulate,” he said.
The Finder