World Bank Group Support to Ghana, Fiscal Years 2013–23 (Approach Paper)

Investment Rating - The report does not explicitly provide an investment rating for the industry or sector under evaluation. Core Insights - The World Bank Group's support to Ghana from FY13 to FY23 aimed to address significant development challenges, including fiscal sustainability, energy sector issues, and education and skills development [2][3][15][57]. Summary by Relevant Sections Background and Country Context - Ghana experienced economic growth with a GDP per capita increase of 2.3% annually from 2013 to 2022, but faced a macroeconomic crisis by 2022, marked by a 54% inflation rate and a declared debt default [4][6]. - The poverty rate, which decreased from 64.2% in 1991 to 25.7% in 2012, is projected to rise to 33.4% by 2025 due to the impacts of the COVID-19 pandemic and inflation [7]. World Bank Group in Ghana - The Bank Group's strategies during the evaluation period included the FY13–16 Country Partnership Strategy (CPS) and the FY22–26 Country Partnership Framework (CPF), focusing on job creation, economic stability, and social equity [18][20]. - Total new commitments from the World Bank to Ghana reached US$5.73 billion between FY13 and FY23, with a significant portion allocated to energy and extractives [24][29]. Special Themes Fiscal Sustainability - Ghana's fiscal challenges included weak revenue mobilization, high expenditures, and significant risks in the energy sector, leading to a high risk of debt distress [40][41]. - The tax-to-GDP ratio averaged 12.8% from 2013 to 2020, below the averages of lower-middle-income countries and Sub-Saharan Africa [40]. Energy Sector - Despite high electricity access rates, the energy sector suffers from reliability issues, high costs, and below-cost-recovery tariffs, with access disparities between urban (95%) and rural (74%) areas [44]. - The Bank Group's support included the Sankofa Gas Project aimed at improving electricity generation reliability, but challenges remain due to high distribution losses and financial instability in state-owned enterprises [45][47]. Education and Skills Development - Ghana has made progress in basic education access, with gross enrollment ratios near 100%, but learning outcomes remain low, particularly in mathematics and English proficiency [50][51]. - The government has prioritized education spending, averaging 6% of GDP from 2011 to 2020, with the Bank Group being a significant contributor to the sector [52][54].