World Bank's IFC Pledges $600 Million to Boost Ghana's Private Sector

Accra, Ghana - 21 Feb, 2025 - The World Bank's International Finance Corporation (IFC) has unveiled plans to inject approximately $600 million into Ghana's private sector. 

This significant investment aims to stimulate economic growth, create employment opportunities, and bolster industrial development.

The IFC's strategy focuses on the garment and agro-processing industries, recognizing their potential for job creation and industrial expansion. Kyle Kelhofer, IFC's Country Director, emphasized the organization's commitment to supporting Ghana's private sector, mobilizing resources, and fostering better job opportunities dring a meeting with Majority Leader, Mahama Ayariga.

“We are here to support the private sector, invest in the private sector, mobilize the private sector, both international and local, and to help create more and better jobs. And what you saw last week at the garment factory was an example of Ghana’s increased ability to take advantage of industrialization to create more and better jobs, and in garments in particular for women.

“This isn’t limited to just garments. It can also be agro-processing, or other forms of industry, but we’re of the view there’s an increased opportunity. And as a result, we’ve been supporting more.

“Last year [2024], we probably mobilized, we financed approximately $450,000,000 for companies in Ghana. This year [2025], we’re targeting approximately 500 to 600,000,000 in Ghana. And whether it’s in things like the industrial zones directly, or industries or factories operating within these zones, or agro-processors operating throughout the country, helping to create more and better jobs,'' Kelhofer added.

Ghana is poised to benefit from the IFC's increased investment, which is expected to reach $500-600 million in 2025. This funding will target key sectors, including industrial zones, factories, and agro-processing businesses, with the ultimate goal of creating more and better jobs.

The investment is expected to complement the government's efforts to create employment opportunities and drive economic growth. Mahama Ayariga, the Majority Leader, acknowledged the significance of the IFC's support, highlighting the importance of collaboration between the government, private sector, and international organizations to achieve sustainable economic development.

“Clearly, a government will be constrained in terms of the financing of a lot of the commitments that we have made. And so increasingly, we need to be looking at sources like yours and then working with the private sector to be able to create jobs and grow the economy.

“And parliamentarians should be at the forefront of linking industries to funding sources and also trying to shape policy that will enable the development of industries. It will definitely go a long way to help us fulfill our commitment to young people, to create jobs, to grow the economy, and then to create more wealth for us to equitably distribute,'' he added.

Source: Lead News Online