The Board of Directors of the African Development Bank Group has approved a $10.41 million grant to help strengthen Ghana’s public financial management systems and support inclusive, climate-resilient economic growth. The funding will support reforms aimed at improving governance and enhancing the country’s economic resilience through stronger institutions and better management of public resources.
The grant is being provided through the African Development Fund, which is the Bank Group’s concessional lending window, and will finance the Strengthening Institutions for Enhanced Financial and Economic Governance (SIEFEG) project. This initiative is focused on improving domestic resource mobilisation, strengthening oversight of public expenditure, and supporting the preparation of Ghana’s next national development plan, with particular attention to gender equality and climate resilience.
The approval comes at a time when Ghana has shown notable economic improvement. The country’s GDP growth is estimated to have risen to 5.8% in 2025, up from 5.6% the previous year, supported by stronger macroeconomic policy management. Consumer inflation also declined significantly to 3.3% in February 2026, falling below the central target range. At the same time, the fiscal deficit narrowed, public debt fell sharply, and the current account surplus expanded, reflecting a broader strengthening of Ghana’s economic position.
Despite these gains, the African Development Bank noted that economic growth has not yet translated into broad-based benefits for all citizens. Unemployment and inequality remain significant challenges, highlighting the need for deeper structural reforms. Through SIEFEG, the project will build institutional capacity in key public bodies such as the Ministry of Finance, the National Development Planning Commission, the Ghana Audit Service, the Public Procurement Authority, Parliament, the Central Tender Review Committee, and the Department of Gender. The goal is to improve how public funds are planned, generated, monitored, and used. The new project also builds on an earlier Bank-supported initiative approved in 2019.
According to Lamin Barrow, Director General for West Africa at the African Development Bank Group, investing in governance systems now will help Ghana build a more transparent, accountable, and resilient economy. The Bank sees stronger governance as a foundation for long-term economic stability and more effective public sector performance.
Beyond strengthening the institutions directly involved, the project is expected to create wider economic benefits. These include giving the government greater fiscal space, enabling more targeted public spending, and creating a stronger environment for private sector growth and job creation. By improving the quality of financial governance, the initiative aims to support more sustainable and inclusive development outcomes.
The SIEFEG project is aligned with Ghana’s long-term development priorities, including the Vision 2057 framework and the Agenda for Jobs strategy. It also supports the African Development Bank’s Country Strategy Paper for Ghana for 2024–2029, as well as the Bank’s Economic Governance Strategy and broader Ten-Year Strategy.
