Ghana’s parliament’s recent approval of an anti-LGBTQ bill, awaiting President Nana Akufo-Addo’s decision, has raised concerns about potential financial repercussions, according to a document from the finance ministry obtained by Reuters on Monday.
The legislation, unanimously passed last week, aims to strengthen measures against LGBTQ rights and individuals accused of promoting non-heteronormative identities in Ghana. This development comes as the country strives to recover from economic challenges and a debt default, supported by a $3 billion loan package from the International Monetary Fund (IMF) secured last year and funding from the World Bank.
The finance ministry’s internal document emphasized the possible adverse effects on financial aid, projecting a loss of $3.8 billion in World Bank financing over the next five to six years if the bill becomes law.
The ministry cautioned that this loss could disrupt the disbursement of funds from the World Bank, consequently impacting the IMF program.
“The non-disbursement of the budget support from the World Bank will derail the IMF program,” stated the document, warning of potential consequences such as market reactions affecting the exchange rate’s stability and Ghana’s long-term debt sustainability.
Despite these concerns, the finance ministry affirmed its commitment to exploring alternative funding sources with the IMF to address the anticipated financial gap. It is noteworthy that a similar anti-LGBT bill in Uganda led to the World Bank suspending new funding for the East African nation.
