The World Bank, in its 8th Economic Update for Ghana titled “Strengthening Domestic Revenue Systems for Fiscal Sustainability” has indicated that a majority of banks operating in Ghana are well-capitalised and do not need any further recapitalisation.
In the expert analyses of the Bank, these banks have done remarkably well in their recapitalisation efforts in a year of the three-year period within which their full recapitalisation was set to be achieved, adding that completing the recapitalisation process will strengthen the banking sector even further.
The Government of Ghana began a controversial banking sector cleanup in 2017 aimed at strengthening the sector and making the whole financial system more robust.
In 2022, the country was hit by a severe macroeconomic imbalances that compelled the Government to seek a bailout from the International Monetary Fund (IMF) and as a result undertook a Domestic Debt Exchange Programme in 2024.
The policies of the Government, the World Bank noted, are yielding results and Ghana is on an economic rebound. However, it advised that the Government must maintain the momentum of the reforms.
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“Ghana’s macroeconomic crisis in 2022 has set back poverty reduction efforts, with poverty levels estimated at 30.3% in 2023. It is crucial to maintain the momentum of the reforms, while mitigating the impact on the poor, to help sustain Ghana’s economic rebound. In parallel, we must lay the foundations for more sustainable and resilient economic growth by implementing comprehensive structural reforms to foster economic diversification and promote long-term inclusive growth,” Ms Michelle Keane, the World Bank Acting Country Director for Ghana, Liberia, and Sierra Leone wrote in the report.
