By Africa Links 24
Published on 2024-03-28 13:13:34
At the end of February, the Ghanaian parliament passed a bill that could potentially have damaging economic ramifications by introducing prison sentences of up to three years for individuals identifying as LGBT+ and five years for those “promoting” LGBT+ activities. However, despite the parliament’s decision, the bill may not become law as it is opposed by the government. President Nana Akufo-Addo has stated that he will await a Supreme Court ruling on the law’s constitutionality before signing off on the bill, reassuring that no human rights backsliding will be contemplated or occasioned.
The leaked documents from the government outlining the potential impact of the bill on the Ghanaian economy have raised concerns among business leaders and financial institutions. The Ministry of Finance suggested that the law could jeopardize almost $4 billion of World Bank funding over the next five to six years, leading to budget cuts and other financial implications. The World Bank has previously taken action against countries deemed to be backsliding on human rights, halting funding to Uganda in a similar situation.
The economic challenges faced by Ghana, including a recent default on foreign liabilities and a high debt burden, have further exacerbated concerns over the impact of the anti-LGBT+ bill. The country’s debt situation became unsustainable after a rise in global interest rates and a depreciation of the Ghanaian cedi, leading to a default and subsequent reliance on funding from the IMF and World Bank.
Despite these challenges, there are reasons for optimism about Ghana’s economic prospects. The country has shown resilience in the face of adversity, with GDP growth surpassing expectations. Business leaders like Samuel Sule and Thecla Wricketts believe that Ghana’s economy has the potential for recovery, especially with factors like high cocoa prices and progress on debt restructuring working in its favor.
Foreign investors are also showing interest in Ghana, thanks to the stabilizing efforts of the government and positive indicators in the economy. Progress on debt restructuring and the potential for increased foreign exchange inflows from commodities like cocoa are seen as key drivers for economic stability and growth.
Overall, while the anti-LGBT+ bill has raised concerns about the potential consequences on the economy, there are signs of hope for Ghana’s economic future. With proactive measures, resilience, and potential for foreign investment, the country could navigate through its current economic challenges towards a path of sustainable growth and stability.
