Rédaction Africa Links 24 with Ghanaian Times
Published on 2024-03-05 07:30:13
The passage of the Proper Human Sexual Rights and Ghanaian Family Values (Anti-LGBTQ) law in Ghana has sparked concerns about potential financial losses for the country. According to the Finance Ministry, Ghana could face a total loss of $3.8 billion in funding from development partners over the next five to six years due to the implementation of this law.
In response to this looming financial gap, the Finance Ministry has suggested that the government engage with conservative countries such as Arab nations and China to secure additional resources. These engagements aim to fill the void left by the withdrawal of financial support from Ghana’s traditional development partners.
The passage of the Anti-LGBTQ law by Parliament on February 28, 2024, has yet to receive the President’s assent. The Finance Ministry has conducted an assessment of the law’s impact on the Ghanaian economy and highlighted the need for structured engagement with local conservative groups, including religious and faith-based organizations. This engagement is crucial for communicating the economic implications of the law and building a coalition to support key development initiatives that may be affected.
The Finance Ministry’s brief also raised concerns about specific financial implications, such as the potential suspension of budget support and development projects. The loss of expected financing could create a significant funding gap in the 2024 budget, requiring adjustments in expenditures or increased domestic revenue mobilization.
Additionally, the brief addressed the impact of the law on Ghana’s debt restructuring program, emphasizing the importance of maintaining a successful IMF program for long-term debt sustainability. The Ministry outlined strategies to address the financial challenges, including engaging with alternative funding sources, enhancing revenue mobilization efforts, and considering expenditure rationalization.
As Ghana navigates the economic fallout from the Anti-LGBTQ law, it will be essential to find innovative ways to mitigate the financial losses and support key development initiatives. By leveraging partnerships with conservative countries and exploring new funding sources, Ghana can address the funding gap and ensure the stability of its economy in the face of changing global dynamics.
Overall, the Finance Ministry’s assessment underscores the need for proactive measures to address the financial challenges posed by the Anti-LGBTQ law. By engaging with diverse stakeholders and implementing strategic financial management practices, Ghana can navigate this transition period and continue on its path towards sustainable economic growth.
Read the original article on Ghanaian Times
