The World Bank has issued a warning to Ghana, threatening to cancel loans worth at least $850 million due to concerns over the recently passed Anti-LGBTQI+ Bill, formally known as the Human Sexual Rights and Ghanaian Family Values Bill 2024, Asaase News reports.
The Bretton Woods institution has raised alarms about the potential impact of the bill on the implementation of World Bank projects and activities in Ghana.
Parliament is expected to consider three major facilities from the World Bank, and a withdrawal of these loans could jeopardize Ghana’s entire program with the International Monetary Fund (IMF) and related debt restructuring efforts.
The World Bank’s funding is crucial for sustaining Ghana’s economic recovery efforts, and any cancellation of loans could have severe implications for the country’s economic stability.
The World Bank had expressed concerns during the debate stages of the bill and had previously canceled loans to Uganda over a similar anti-LGBTQ law. Analysts have described Ghana’s “Human Sexual Rights and Family Values Bill” as even harsher than the one in Uganda.
In a letter to the Government of Ghana, Pierre Laporte, the World Bank country director for Ghana, Liberia, and Sierra Leone, emphasized the bank’s commitment to supporting Ghana’s development goals but warned against impeding beneficiaries based on various grounds, including sexual orientation and gender identity.
The fate of a $300 million World Bank loan currently before Ghana’s Parliament hangs in the balance as the country awaits the last step in the legislative process for the Anti-LGBTQI+ Bill – presidential assent.
The potential cancellation of loans raises concerns about the impact on Ghana’s economic recovery, business confidence, and the stability of its currency.
Source: Ghanaweb